Comprendiendo los Precios Nodales Espaciales y el Valor Estratégico del Agua en el Despacho Óptimo (Understanding Locational Marginal Prices (LMPs) and Strategic Value of Water in Optimal Dispatch)

Ivan Chaparro (, David Watts (

This paper appears in: Revista IEEE América Latina

Publication Date: March 2012
Volume: 10,   Issue: 2 
ISSN: 1548-0992

This paper develops models of optimal power flow (OPF) applied to different power systems increasing in complexity; a thermal system without transmission representation, a thermal one with the transmission system, and a hydrothermal system with transmission constraints and a reservoir allowing water management and Peak Load Shaving. This paper develops algebraically the modeling of these features and their effect on optimal dispatch and on short-term energy prices (varying in time and space). This is supported by the use of very simple numerical examples.We conclude that prices are strongly affected by both physical and economical characteristics of the systems. Transmission has a key role here, especially shaping prices over the space and limiting the strategic value of water storage.

Index Terms:
locational marginal pricing, LMP, value of water, thermal power system, hydrothermal power system, optimal power flow, OPF, economic dispatch   

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