Admissible Locational Marginal Prices via Laplacian Structure in Network Constraints

@article{CheverezGonzalez2009AdmissibleLM,
  title={Admissible Locational Marginal Prices via Laplacian Structure in Network Constraints},
  author={Daniel Cheverez-Gonzalez and C. L. DeMarco},
  journal={IEEE Transactions on Power Systems},
  year={2009},
  volume={24},
  pages={125-133}
}
Standard computations reveal that locational marginal prices (LMPs), being Lagrange multipliers in an optimization problem, must lie in the null space of a Jacobian matrix evaluated at the optimal power flow solution, augmented by columns associated with active line flow limits. The impact of network power flow and active line limit constraints is to confine the LMPs in a subspace that satisfies necessary conditions for optimality. Optimal market clearing can then proceed as a minimization over… CONTINUE READING
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