A method for node prices formation

Abstract

Proposed by producers price is a major factor in determining the nodal price, next transport losses, congestion costs and other paying. In the paper, main attention is paid to accounting producer prices and losses to the node in question. Each producer sends its share of power (reciprocal power) in the considered node while on the road he needs extra energy (reciprocal losses) to reach the node. Thus consumer which feeds from the node is to pay for received energy and the losses of its transportation to the node. The reciprocal power is defined by proposed node voltage method but reciprocal losses are defined by node current increment method. Reciprocal losses can rarely be also negative, that is caused by redistribution of the branch currents in a closed network. Nodal price takes into consideration all suppliers by calculating an average value. If congestion is expressed by current limitation in a line, then there is additional condition that causes recalculation of reciprocal quantities.