Locational Marginal Pricing Basics for Restructured Wholesale Power Markets

Haifeng Liu, Leigh Tesfatsion () and A.A. Chowdhury

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: In this tutorial paper, different AC and DC optimal power flow (OPF) models are presented to help understand the derivation of Locational Marginal Prices (LMPs) in restructured wholesale power markets. As a byproduct of this analysis, the paper provides a rigorous explanation of the basic LMP and LMP-decomposition formulas (neglecting real power losses) presented without derivation in the business practice manuals of the U.S. Midwest Independent System Operator (MISO). Related resources can be accessed at: http://www2.econ.iastate.edu/tesfatsi/aelect.htm

Keywords: Locational marginal pricing; Wholesale power markets; restructuring; electricity; Midwest ISO (search for similar items in EconPapers)
JEL-codes: D4 D6 L1 L2 L94 Q4 (search for similar items in EconPapers)
Date: 2009-07-01
References: Add references at CitEc
Citations: View citations in EconPapers (11)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Locational Marginal Pricing Basics for Restructured Wholesale Power Markets (2009)
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:isu:genres:13072

Access Statistics for this paper

More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().