Liu, Haifeng; Tesfatsion, Leigh S.; Chowdhury, A.A. - Department of Economics, Iowa State University - 2009
Although Locational Marginal Pricing (LMP) plays an important role in many restructured wholesale power markets, the … power flow (OPF) models are presented to help understand the derivation of LMPs. As a byproduct of this analysis, we are … able to provide a rigorous explanation of the basic LMP and LMP-decomposition formulas (neglecting real power losses …