Electricity markets are moving to use locational marginal pricing ('LMP') to determine generation dispatch and pricing while managing transmission congestion. While many industry practitioners are familiar with the LMP concept, its finer points are not understood by everyone.
LMP provides a simple answer to the complex problem of dispatching generators and setting prices in a system with transmission constraints. Even though LMP is based on complicated theory and complex equations, an understanding of the outcomes produced in an LMP regime can be gained by observing the relationships between generator bids, system constraints, demand levels and other factors.
PA Consulting Group's LMP Calculator is an easy-to-use tool to help understand LMP, allowing the user to vary inputs and observe the resulting locational prices and generator dispatch. A Quick User Guide and a tutorial with simple exercises accompanies the LMP Calculator.
The LMP Calculator is a representation of a 5-bus network with four generators and four demand centers. The user can change variables in this network, including generation bids, demand center loads, and transmission line characteristics. The LMP Calculator then solves for a new set of dispatch and price outcomes.
PA's LMP Calculator is implemented in Microsoft Excel 2000™ and can be run using Office 2000™ or Office XP™.
In order to download a copy of the LMP Calculator, please register following the easy instructions below; if you have already registered follow the second link below:
If you need to register for the first time please click here
If you have already registered click here
Terms and conditions
For any comments or assistance please contact:
| Carolyn Misage |
| PA Consulting Group |
| 1700 Lincoln Street, Suite 4600 |
| Denver, CO 80203 |
| United States |
| |
| Tel: + 1 720 566 9920 |
| Fax: + 1 720 566 9680 |
| E-mail: carolyn.misage@paconsulting.com |
