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Locational Marginal Pricing (LMP) Based Optimal Bilateral Transaction in Deregulated Environment


Author(s):

P. Parvatha Sundari , K.L.N. COLLEGE OF ENGINEERING ; Dr. S. Venkatesan, K.L.N. COLLEGE OF ENGINEERING

Keywords:

Electricity Market, Independent Power Producer (IPP), Locational Marginal Pricing (LMP), Newton-Raphson Method, Optimal Power Flow, Social Welfare

Abstract:

In Deregulation Electricity Market, the optimal location of Independent power producer (IPP) is found by using Locational Marginal Pricing (LMP) with Newton-Raphson Method. LMP is the most trendy congestion management technique and used to find out the congestion charge at particular nodes based on the marginal generation cost. The aim of this paper is to maximize the social welfare and to obtain the optimal site of IPP using an LMP and managing the transmission lines overflow while rewarding security constraints of transmission lines in the competitive power marketplace. The LMP ranking method is used to find out the location of IPP. This paper explains how LMP calculation is performed at each bus at which location the transmission lines overflow occurs and how the overflow is alleviated by connecting the IPP at the congested spot in order to maximize the social welfare. The proposed method illustrated by case studies on the IEEE 30 bus and Indian utility 69 bus system.


Other Details:

Manuscript Id :IJSTEV3I8049
Published in :Volume : 3, Issue : 8
Publication Date: 01/03/2017
Page(s): 122-129
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