by David Nurse | Apr 16, 2018 | Blog, Locational Marginal Pricing |
#1 System Energy Price LMPs are made up of System Energy Price, Congestion Costs, and Losses. System Energy Price represents the cost to serve power on a system, ignoring transmission and congestion costs. In organized markets, power plants are dispatched lowest cost...
by David Nurse | Apr 13, 2018 | Blog, Locational Marginal Pricing |
The third component of LMPs is the cost of marginal losses. Losses are just electricity that is lost during long-distance transport. So, the closer your power plant is to the load that it is serving, the lower your Losses are, and the further away it is, the higher...