Current Pricing

Abstract

Nodal pricing or LMP is one option to deal with congestion in the distribution grids that are expected due to the emergence of electric vehicles. When optimal power flow (OPF) with losses is used to determine optimal dispatch and locational marginal prices (LMP) of a power systems, the prices include marginal losses. Marginal losses are double the amount of the real physical losses. This leads to over collection and higher prices for costumers far from generators. In this paper current pricing is proposed as a method to get nodal prices without marginal losses. DC grids are used for simpler exact modeling with an OPF formulation in terms of voltage and current instead of power. The nodal prices without marginal losses are derived by linearizing the quadratic OPF problem by only fixing the voltage, instead of using taylor approximation. An example illustrates the difference of nodal prices with marginal losses and current pricing.