The definition of the nodal price (LMP) at any given bus is the
sensitivity of the objective function (total system cost) to the
addition of an extra MW of demand at the bus. This can be done with
completely inelastic (fixed) demand and requires no customer bid
functions. More technically, these nodal prices are the shadow prices
or Lagrange multipliers on the nodal power balance equality
constraints in the OPF problem.
--
Ray Zimmerman
Senior Research Associate
211 Warren Hall, Cornell University, Ithaca, NY 14853
phone: (607) 255-9645
On Aug 29, 2009, at 7:42 AM, jigna pandya wrote:
Respected Sir,
when i solve opf for case6ww, the output yields LMP of active powers
of generator buses. The output also gives LMP of active and reactive
power of load buses. my question is : in the file "case6ww" no data
is given about consumers' bid function. Then how is the LMP
calculated?
thank you
