Analysis of Locational Marginal Pricing Based DCOPF

In this paper, the analysis of locational marginal pricing based on DCOPF for concentrated and distributed model is explained with fixed bids and linear bids. LMP is an effective transmission pricing method and it is required to address transmission issues, generate correct economic pricing and to reduce the generation cost. Transmission line constraints can result in variations in energy prices throughout the network. These prices depend on generator bids, load levels and transmission network limitations. Locational marginal pricing (LMP) has become popular method in restructured power markets to address the congestion price. Both fixed and linear bids are considered for generators. Here we are using DCOPF in MATPOWER software to calculate LMP-s at all buses considering concentrated loss model and a distributed loss model for fixed bids and linear bids in MATLAB software. LMP decomposition is also given, which can be decomposed into energy price, congestion price and loss price. IEEE 14 bus system is used here. The total production cost will be reduced. Decomposition of LMP is carried out to ensure economic operation. Distributed loss model considering linear bids shows reduced generation fuel cost compared to concentrated loss model.