The effects of extended locational marginal pricing in wholesale electricity markets

Gregory Thompson, Chao Li, Muhong Zhang, Kory Hedman

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Scopus citations

Abstract

In this paper, two pricing mechanisms in electricity markets are studied, the locational marginal price (LMP) and the extended locational marginal price (ELMP). The effects of these two pricing mechanisms are compared with regards to the allocation of the market surplus between generators and loads. The two pricing mechanisms are also analyzed with regards to the required uplift payments. The results confirm that uplift payments are reduced under the ELMP pricing mechanism. However, ELMP does not appropriately represent the marginal market clearing price for the market dispatch solution.

Original languageEnglish (US)
Title of host publication45th North American Power Symposium, NAPS 2013
DOIs
StatePublished - Dec 1 2013
Event45th North American Power Symposium, NAPS 2013 - Manhattan, KS, United States
Duration: Sep 22 2013Sep 24 2013

Publication series

Name45th North American Power Symposium, NAPS 2013

Other

Other45th North American Power Symposium, NAPS 2013
CountryUnited States
CityManhattan, KS
Period9/22/139/24/13

Keywords

  • Extended locational marginal price
  • locational marginal price
  • non-convex markets
  • pricing mechanisms
  • uplifts

ASJC Scopus subject areas

  • Energy Engineering and Power Technology
  • Fuel Technology

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  • Cite this

    Thompson, G., Li, C., Zhang, M., & Hedman, K. (2013). The effects of extended locational marginal pricing in wholesale electricity markets. In 45th North American Power Symposium, NAPS 2013 [6666921] (45th North American Power Symposium, NAPS 2013). https://doi.org/10.1109/NAPS.2013.6666921