Locational marginal pricing under composite dynamic load models: Formulation and computation

Locational marginal price (LMP) is a fundamental principle in the majority of electricity markets and is increasingly being employed at a number of ISO's such as PJM, california ISO, etc. It is essential to obtain the accurate value of LMPs. This paper presents an OPF formulation with a composite dynamic load models which is a composite of ZIP and induction motor loads. An improved locational marginal price (LMP) decomposition model for this formulation is also given, which can effectively decompose the LMP into three components. Case studies on a modified IEEE 30-bus and IEEE 118-bus system are reported to illustrate the impacts of composite load models on LMPs and its decomposition.