locational-marginal-prices

Extract locational marginal prices by reading the dual values of nodal power balance constraints from a solved DC-OPF model. Scale these dual values by baseMVA to convert them into standard $/MWh market prices for each bus.

In a DC-OPF power flow solution, dual values represent the locational marginal prices at each bus. They indicate the marginal cost of serving an additional unit of load at that specific node, revealing congestion-induced price signals across the network.

Convert DC-OPF dual values to $/MWh electricity prices by scaling the raw dual values of the nodal power balance constraints using the system's baseMVA parameter. This conversion standardizes the raw optimization output into actionable market prices.

Yes, you need a solved DC-OPF model to compute nodal electricity prices. The extraction process requires the optimization to be complete so that dual values for the nodal power balance constraints are available for conversion to LMPs.

Locational marginal prices differ across buses in congested networks due to binding transmission limits. The DC-OPF dual values capture these congestion-induced price signals, showing how network constraints increase the marginal cost of power at specific nodes.

Common use cases for extracting LMPs from DC-OPF dual values include price impact analysis, reserve pricing, and market design assessments. The extracted nodal prices enable detailed congestion assessment and market signaling for power systems studies.