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This paper proposes a solution to eliminate the step change in the curve of location marginal price (LMP) with respect to load variation. The new solution is named continuous locational marginal pricing (continuous LMP or CLMP) because it is a continuous function with respect to load. The present LMP methodology leads to a step change when a new constraint, either transmission or generation, becomes...
The ongoing de-regulation of the U.S. electric power industry is to build open-access, non-discriminative and competitive electricity markets. In 2002 the federal energy regulatory commission (FERC) proposed Standard Market Design (SMD), in which the key is the locational marginal pricing (LMP) methodology to determine the energy price and to manage the network congestion. LMP has been adopted by...
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