Power systems locational marginal pricing in deregulated markets
Description
Since the beginning of the 1990s, the electricity business is transforming from a vertical integrating business to a competitive market operations. The generation, transmission, distribution subsystem of an electricity utility are operated independently as Genco (generation subsystem), Transco (transmission subsystem), and Distco (distribution subsystem). This trend promotes more economical inter- and intra regional transactions to be made by the participating companies and the users of electricity to achieve the intended objectives of deregulation. There are various types of electricity markets that are implemented in the North America in the past few years. However, transmission congestion management becomes a key issue in the electricity market design as more bilateral transactions are traded across long distances competing for scarce transmission resources. It directly alters the traditional concept of energy pricing and impacts the bottom line, revenue and cost of electricity, of both suppliers and buyers. In this research, transmission congestion problem in a deregulated market environment is elucidated by implementing by the Locational Marginal Pricing (LMP) method With a comprehensive understanding of the LMP method, new mathematical tools will aid electric utilities in exploring new business opportunities are developed and presented in this dissertation. The dissertation focuses on the development of concept of (LMP) forecasting and its implication to the market participants in deregulated market. Specifically, we explore methods of developing fast LMP calculation techniques that are differ from existing LMPs. We also explore and document the usefulness of the proposed LMP in determining electricity pricing of a large scale power system The developed mathematical tools use of well-known optimization techniques such as linear programming that are support by several flow charts. The fast and practical security constrained unit commitment methods are the integral parts of the LMP algorithms. Different components of optimization techniques, unit commitment, power flow analysis, and matrix manipulations for large scale power systems are integrated and represented by several new flow charts The LMP concept and processes, mathematical models, and their corresponding algorithms has been implemented to study a small six bus test power system/market and also the real size New York power system/market where the transmission congestion is high and electricity market is deregulated. The simulated results documented in the dissertation are satisfactory and produce very encouraging result when compared to the actual Located Based Marginal Price (LMP) results posted by the New York Independent System Operator (ISO). The further research opportunities inspired by this dissertation are also elaborated