Computation and economics of nodal price in a restructured electricity market
Since last century, the electrical power industry world wide has been continuously restructured from a centralized monopoly to a competitive market. Under it, competitive market is one of the effective mechanism for energy supply to free the customer’s choices and improve overall social welfare. The aim of this restructuring is to promote competition and to make the electricity market more efficient. Recently, the electric power industry has entered in an increasingly competitive environment under which it becomes more realistic to improve economics and reliability of power systems by enlisting market forces . In developing countries, the trend of electricity market is heading towards Transmission Open Access (TOA) whereby transmission providers will be required to offer the basic transmission service (operational and/or ancillary services) and pricing . Electricity nodal pricing in this context is an effective scheme for providing techno-economic benefits to the market participants. Nodal prices contain valuable information useful for Poolco operation and, hence the scheme is to accurately determine them, continue to be an active area of research.
KeywordsReactive Power Electricity Market Spot Price Spot Prex Locational Marginal Price
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