Several market algorithms, such as Fast Locational Marginal Pricing (FLMP) and Receding Horizon Control (RHC), have shown the ability to cope with grid congestion. The RHC algorithm can cope with fluctuations in power consumption and generation but is computationally intensive due to the larger search space within the time horizon. The FLMP algorithm is not complex but does not utilize a horizon with information on future consumption and generation. This paper demonstrates a performance comparison between the FLMP and Horizon Marginal Pricing (HMP) algorithm. HMP is an algorithm that combines the simplicity of the FLMP algorithm with the time horizon possibilities of the RHC algorithm. The HMP algorithm uses the predicted generation profile to adjust the bid curves, such that consumption shifts to moments with more renewable generation available. Simulations are carried out to compare the performance between the HMP and FLMP algorithms. The results show comparable performance between the FLMP and HMP, whilst the FLMP computes the simulation faster and requires less bandwidth.
|Number of pages||4|
|Publication status||Published - 25 Sep 2020|
- Congestion Management
- Marginal Pricing
- Horizon Control