Markets in Real Electric Networks Require Reactive Prices

William W. Hogan

The Energy Journal, 1993, vol. 14, issue 3, 171-200

Abstract: Differences in locational spot prices in an electric network provide the natural measure of the price for transmission. The ubiquitous problem of loop flow requires different economic intuition for interpreting the implications of spot pricing. The DC-Load model is the usual approximation for estimating spot prices, although it ignores reactive power effects. This approximation is best when thermal constraints create congestion in the network. In the presence of voltage constraints, the DC-Load model is insufficient, and the full AC-Model is required to determine both real and reactive power spot prices.

Keywords: Electric networks; Reactive prices; Spot prices; congestion; DC-Load model (search for similar items in EconPapers)
Date: 1993
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.5547/ISSN0195-6574-EJ-Vol14-No3-8 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:14:y:1993:i:3:p:171-200

DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No3-8

Access Statistics for this article

More articles in The Energy Journal
Bibliographic data for series maintained by SAGE Publications ().