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Why LMP at some locations can be higher than the most expensive unit’s price?

Interesting thoughts, 2025

In the electricity wholesale market in the USA, the electricity price is decided on each bus by the marginal cost of increamental load, which is call locational marginal price (LMP). The load will pay LMP of its location to the system operator and the generation will get paid by this LMP of its location too.

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Introducing Uncertainty Components in Locational Marginal Prices for Pricing Wind Power and Load Uncertainties

Published in IEEE Transactions on Power Systems, 2019

Recommended citation: X. Fang, B. -M. Hodge, E. Du, C. Kang and F. Li, "Introducing Uncertainty Components in Locational Marginal Prices for Pricing Wind Power and Load Uncertainties," in IEEE Transactions on Power Systems, vol. 34, no. 3, pp. 2013-2024, May 2019, doi: 10.1109/TPWRS.2018.2881131. https://ieeexplore.ieee.org/abstract/document/8601342

Deliverable Flexible Ramping Products Considering Spatiotemporal Correlation of Wind Generation and Demand Uncertainties

Published in IEEE Transactions on Power Systems, 2019

Recommended citation: X. Fang, K. S. Sedzro, H. Yuan, H. Ye and B. -M. Hodge, "Deliverable Flexible Ramping Products Considering Spatiotemporal Correlation of Wind Generation and Demand Uncertainties," in IEEE Transactions on Power Systems, vol. 35, no. 4, pp. 2561-2574, July 2020, doi: 10.1109/TPWRS.2019.2958531. https://ieeexplore.ieee.org/abstract/document/8930990

Two-stage stochastic optimization frameworks to aid in decision-making under uncertainty for variable resource generators participating in a sequential energy market

Published in Applied Energy, 2021

Recommended citation: Razan A.H. Al-Lawati, Jose L. Crespo-Vazquez, Tasnim Ibn Faiz, Xin Fang, Md. Noor-E-Alam, Two-stage stochastic optimization frameworks to aid in decision-making under uncertainty for variable resource generators participating in a sequential energy market, Applied Energy, Volume 292, 2021, 116882, ISSN 0306-2619, https://doi.org/10.1016/j.apenergy.2021.116882. https://www.sciencedirect.com/science/article/pii/S0306261921003706

Secondary Frequency Regulation from Variable Generation Through Uncertainty Decomposition: An Economic and Reliability Perspective

Published in IEEE Transactions on Sustainable Energy, 2021

Recommended citation: X. Fang, H. Yuan and J. Tan, "Secondary Frequency Regulation from Variable Generation Through Uncertainty Decomposition: An Economic and Reliability Perspective," in IEEE Transactions on Sustainable Energy, vol. 12, no. 4, pp. 2019-2030, Oct. 2021, doi: 10.1109/TSTE.2021.3076758. https://ieeexplore.ieee.org/abstract/document/9420286

Transmission-and-Distribution Dynamic Co-Simulation Framework for Distributed Energy Resource Frequency Response

Published in IEEE Transactions on Smart Grid, 2021

Recommended citation: W. Wang, X. Fang, H. Cui, F. Li, Y. Liu and T. J. Overbye, "Transmission-and-Distribution Dynamic Co-Simulation Framework for Distributed Energy Resource Frequency Response," in IEEE Transactions on Smart Grid, vol. 13, no. 1, pp. 482-495, Jan. 2022, doi: 10.1109/TSG.2021.3118292. https://ieeexplore.ieee.org/abstract/document/9569771

Demonstrating the transient system impact of cyber-physical events through scalable transmission and distribution (T&D) co-simulation

Published in CSEE Journal of Power and Energy Systems, 2023

Recommended citation: M. Cai, W. Wang, X. Fang, A. R. Florita, M. Ingram and D. Christensen, "Demonstrating the transient system impact of cyber-physical events through scalable transmission and distribution (T&D) co-simulation," in CSEE Journal of Power and Energy Systems, doi: 10.17775/CSEEJPES.2023.01710. https://ieeexplore.ieee.org/abstract/document/10376004

Manage Real-Time Power Imbalance With Renewable Energy: Fast Generation Dispatch or Adaptive Frequency Regulation?

Published in IEEE Transactions on Power Systems, 2023

Recommended citation: N. Gao, D. W. Gao and X. Fang, "Manage Real-Time Power Imbalance With Renewable Energy: Fast Generation Dispatch or Adaptive Frequency Regulation?," in IEEE Transactions on Power Systems, vol. 38, no. 6, pp. 5278-5289, Nov. 2023, doi: 10.1109/TPWRS.2022.3232759. https://ieeexplore.ieee.org/abstract/document/10002304

Addressing Wind Power Forecast Errors in Day-Ahead Pricing With Energy Storage Systems: A Distributionally Robust Joint Chance-Constrained Approach

Published in IEEE Transactions on Sustainable Energy, 2024

Recommended citation: A. Zhou, M. Yang, X. Fang and Y. Zhang, "Addressing Wind Power Forecast Errors in Day-Ahead Pricing With Energy Storage Systems: A Distributionally Robust Joint Chance-Constrained Approach," in IEEE Transactions on Sustainable Energy, doi: 10.1109/TSTE.2024.3374212. https://ieeexplore.ieee.org/abstract/document/10461088

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