If the dispatchable load price is at $200, then if congestion causes one of these loads to become marginal (not fully dispatched), the price at that bus will be $200. Due to losses, prices at nearby buses could be slightly higher.
I should also mention that, with inelastic demand, it is possible for nodal prices to go well above the highest generator offer in a highly constrained system. The intuition is that an extra increment of load at that bus may require a much larger shift of generation from cheap to expensive sources. -- Ray Zimmerman Senior Research Associate 419A Warren Hall, Cornell University, Ithaca, NY 14853 phone: (607) 255-9645 On Nov 29, 2012, at 11:26 AM, Geev Mokryani <[email protected]> wrote: > Dear Prof. Zimmerman, > > > My main problem is this: I have generators offers price of 80 USD/MWh and > bids of dispatchable loads price of 200 USD/MWh and in the network I have > congestion. When I do runmarket in MATPOWER at some buses it gives me the LMP > around 200 USD/MWh. Could you please let me know how it occures and why? > Usually it has to give us the LMP in the range between 200 and 80 USD/MWh. > > If you need I can send the network and m.file. > > Looking forward to hearing from you. > > > Best regards, > > Geev
