| This thesis studies the circumstances in which power scheduled to flow over a controllable line from a particular source would be priced differently than one delivered from that source but through free-flowing lines. This work also studies several factors that affect pricing of energy scheduled to flow over controllable lines. The purpose of this investigation is to study the impact on electricity pricing, specifically on the locational marginal price (LMP). Moreover, the interest is to make the point that by being able to control a specific line in the system it can be able to control the flow at large, in the system during a time period, and thus reducing the price of energy. In addition, this concept of controllable lines can be applied, in generic terms, onto an energy market. The reason for pursuing this investigation is to study the impact of congestion on LMP as an issue of major importance. Since transmission networks increase generating costs as well as making markets less competitive compensation methods like this can help to optimize the price of energy and make them more cost effective. During this investigation a five-bus system was simulated and several case studies were performed. The study started with system without congestion, followed by single-contingency and binding constraints with controllable lines present. Results were obtained for each case and after analyzing the results it can be concluded that controllable lines help us achieve greater efficiency in the power system. |
