Locational marginal price variability at distribution level

a regional study

Research output: Contribution to conferencePaper

1 Citation (Scopus)
25 Downloads (Pure)

Abstract

As distribution systems move towards being more actively managed there is increased potential for regional markets and the application of locational marginal prices (LMPs) to capture spatial variation in the marginal cost of electricity at distribution level. However, with this increased network visibility can come increased price volatility and uncertainty to investors. This paper studies the variation in LMPs in a section of the south west of England distribution network for current and future installed capacity of distributed generation. It has been shown that in an unconstrained network, spatial LMP variation (due to losses) is minimal compared to the temporal variation. In a constrained network, a significant increase in LMP volatility was observed, both spatially and temporally. This could bring risk for generators particularly if they become stranded in low price areas, or flexible demands facing a drop-off in return when constraints are removed.
Original languageEnglish
Number of pages6
Publication statusPublished - 21 Oct 2018
Event8th IEEE PES Innovative Smart Grid Technologies Conference - Sarajevo, Bosnia and Herzegovina
Duration: 21 Oct 201825 Oct 2018

Conference

Conference8th IEEE PES Innovative Smart Grid Technologies Conference
CountryBosnia and Herzegovina
CitySarajevo
Period21/10/1825/10/18

Fingerprint

Distributed power generation
Electric power distribution
Visibility
Electricity
Costs
Uncertainty

Keywords

  • locational
  • variability
  • volatility
  • distribution
  • LMP
  • pricing
  • marginal

Cite this

Edmunds, C., Bukhsh, W. A., Gill, S., & Galloway, S. (2018). Locational marginal price variability at distribution level: a regional study. Paper presented at 8th IEEE PES Innovative Smart Grid Technologies Conference, Sarajevo, Bosnia and Herzegovina.
Edmunds, Calum ; Bukhsh, Waqquas A. ; Gill, Simon ; Galloway, Stuart. / Locational marginal price variability at distribution level : a regional study. Paper presented at 8th IEEE PES Innovative Smart Grid Technologies Conference, Sarajevo, Bosnia and Herzegovina.6 p.
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Edmunds, C, Bukhsh, WA, Gill, S & Galloway, S 2018, 'Locational marginal price variability at distribution level: a regional study' Paper presented at 8th IEEE PES Innovative Smart Grid Technologies Conference, Sarajevo, Bosnia and Herzegovina, 21/10/18 - 25/10/18, .

Locational marginal price variability at distribution level : a regional study. / Edmunds, Calum; Bukhsh, Waqquas A.; Gill, Simon; Galloway, Stuart.

2018. Paper presented at 8th IEEE PES Innovative Smart Grid Technologies Conference, Sarajevo, Bosnia and Herzegovina.

Research output: Contribution to conferencePaper

TY - CONF

T1 - Locational marginal price variability at distribution level

T2 - a regional study

AU - Edmunds, Calum

AU - Bukhsh, Waqquas A.

AU - Gill, Simon

AU - Galloway, Stuart

PY - 2018/10/21

Y1 - 2018/10/21

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AB - As distribution systems move towards being more actively managed there is increased potential for regional markets and the application of locational marginal prices (LMPs) to capture spatial variation in the marginal cost of electricity at distribution level. However, with this increased network visibility can come increased price volatility and uncertainty to investors. This paper studies the variation in LMPs in a section of the south west of England distribution network for current and future installed capacity of distributed generation. It has been shown that in an unconstrained network, spatial LMP variation (due to losses) is minimal compared to the temporal variation. In a constrained network, a significant increase in LMP volatility was observed, both spatially and temporally. This could bring risk for generators particularly if they become stranded in low price areas, or flexible demands facing a drop-off in return when constraints are removed.

KW - locational

KW - variability

KW - volatility

KW - distribution

KW - LMP

KW - pricing

KW - marginal

M3 - Paper

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Edmunds C, Bukhsh WA, Gill S, Galloway S. Locational marginal price variability at distribution level: a regional study. 2018. Paper presented at 8th IEEE PES Innovative Smart Grid Technologies Conference, Sarajevo, Bosnia and Herzegovina.