PROJECT TITLE :

Evaluation of LMP Intervals Considering Wind Uncertainty

ABSTRACT:

Step changes in the curve of locational marginal costs (LMP) under load variation are known characteristics given its gift formulation. Identifying LMP intervals below wind uncertainty is vital for market participants to assess and mitigate their risks when price forecast is needed. This work proposes a bi-level optimization model to calculate the LMP intervals beneath wind uncertainty without the repetitive Monte Carlo (MC) simulation. The particular bus LMP maximization (or minimization) is the higher level downside, whereas the ISO’s economic dispatch is the lower level problem. Case studies are presented to demonstrate the proposed methodology.