Hi Carlos, If you may allow me, i can attempt to try and give a little i know about your question. When all prices are equal, its mean flow of power is minimized, since from the economical point of view power flow is from low priced area to a higher priced area. in this case (equal prices) only power flow between areas will only be in events of deficits/excess. But if prices are different, and there is transfer capacity between areas and adequate (excess) power in lower priced areas, only part of the demand which can not be met by power flowing from lower priced area will be met by local supply and the rest will be met by power from lower priced area. so with reduced/minimized power flows there will be reduced/minimized transmission losses Kind regards,
Fred On 13 January 2014 12:23, Carlos Gonzalez Almeida < [email protected]> wrote: > Dear Dr. Zimmerman, > > Could please let know according to the below post how " cost minimization is > equivalent to loss minimization"? Could you please explain? > > > Best Wishes > > > > > ---------- Forwarded message ---------- > From: Ray Zimmerman <[email protected]> > Date: Wed, May 4, 2011 at 3:17 PM > Subject: Re: Question about objective function > To: Dailan Xu <[email protected]> > > > The purpose of runmarket is to implement a standard auction market such as > those used by the typical ISO. The objective of minimization of cost or > maximization of social welfare is consistent with such markets. > > Now, if you want to minimize losses using runmarket, simply put in equal > offer prices for all generators. Then cost minimization is equivalent to > loss minimization. > > -- > Ray Zimmerman > Senior Research Associate > 211 Warren Hall, Cornell University, Ithaca, NY 14853 > phone: (607) 255-9645 > > > > On May 4, 2011, at 8:15 AM, Dailan Xu wrote: > > > Dear Prof. Zimmerman > > > > Could you please let me know why in the runmarket you have chosen the > objective function as minimization of cost or maximization social welfare? > what is the reason? > > > > For example, why you haven't chosen loss or other objectives? > > > > Best Regards > > > > D. Xu > > > > > -- *Fred Kanjelesa.*NCC-Trading/ZESCO Zambia/Lusaka. Mobile: +260967/955-880912 Extension: 5124 "I can do all things through Christ who strengthens me." *Philippians 4:13*
