A Study on Congestion Effect on Locational Market Price for Profit Market Strategies

摘要

This paper presents an analysis on the effect of congestion in determining the profit for generating companies. The locational market price (LMP) determined at each node/bus determines the profit for generating companies and benefit for the consumers. The transmission line loading capabilities will have effect on scheduling the generators. The congestion of transmission line influences the LMP at each node where the transmission line is connected. The difference in marginal cost of generator and LMP at the node connected will determine loss or profit to the generating company. In this paper, a three-bus, seven-bus, and nine-bus systems are simulated for different congestions, and effect on profit is studied. The congestion effect on price of generating companies is studied in this paper. A method to relieve congestion by some percentage on transmission line to benefit generating companies is the key study in this paper, and results are presented in detail.