A more transparent way of financial settlement for congestion cost in electricity markets

C. S. Tan, Yun Liu, K. L. Lo

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Citations (Scopus)

Abstract

This paper discussed the locational marginal price decomposition of financial settlement for congestion cost. The paper explains the underlying principles of LMP decomposition and enables the system operator to administrate the congestion cost in an efficient way for financial settlement and to provide a non-discriminatory transmission pricing to each market participant. Three LMP cost decomposition approaches are discussed and are illustrated on a simple six-bus system.

Original languageEnglish
Title of host publication3rd International Conference on Deregulation and Restructuring and Power Technologies, DRPT 2008
Pages291-296
Number of pages6
DOIs
Publication statusPublished - 22 Aug 2008
Event3rd International Conference on Deregulation and Restructuring and Power Technologies, DRPT 2008 - Nanjing, China
Duration: 06 Apr 200809 Apr 2008

Publication series

Name3rd International Conference on Deregulation and Restructuring and Power Technologies, DRPT 2008

Other

Other3rd International Conference on Deregulation and Restructuring and Power Technologies, DRPT 2008
CountryChina
CityNanjing
Period06/04/0809/04/08

All Science Journal Classification (ASJC) codes

  • Energy Engineering and Power Technology
  • Law

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  • Cite this

    Tan, C. S., Liu, Y., & Lo, K. L. (2008). A more transparent way of financial settlement for congestion cost in electricity markets. In 3rd International Conference on Deregulation and Restructuring and Power Technologies, DRPT 2008 (pp. 291-296). [4523420] (3rd International Conference on Deregulation and Restructuring and Power Technologies, DRPT 2008). https://doi.org/10.1109/DRPT.2008.4523420