Analysis of Nodal Prices for Power Systems

Abstract

This paper proposes a methodology directly to link each concerned factors to the nodal prices, i.e., we break down each nodal price into a variety of parts corresponding to different factors, such as generations, transmission congestion, voltage limitations and other constraints. These detail information for nodal prices can be used not only to improve the efficient usage of power grid, energy resources and congestion management, but also to provide economic signals for generation or transmission investment. Several numerical simulations have been used to demonstrate our approach.