Determination of electricity nodal prices using Lagrange method

Abstract

With the functioning of the electric powermarket all participants in the market sell and buy electricpower on the united equilibrium price. United equilibriumprice for all participants of market can’t be established tobe upon consideration of system limitations. Theirindividual equilibrium prices, called nodal price,correspond to different generator and load units.In the work is ilustrated possibility of the nodal pricescalculation for load nods with the aid of the indeterminateLagrange multipliers based on the example of the electricpower system test scheme. The corresponding optimizationproblem of the linear programming preliminarily is solvedfor the revealing of active limitations to the variables.

Keywords

• electric power
• optimization
• nodal price
• active and passive limitations
• Lagrange multipliers