A review on Locational Marginal Price (LMP) for deregulated industry

Abstract

In recent years the power industry has experienced significant changes in power distribution systems primarily due to implementation of smart grid technologies and implementation of distributed generation.This paper focuses on LOCATIONAL MARGINAL PRICING method which is the most effective method for determining the optimal location of generator taking consideration of the constraints like voltage limits, line flow limits,congestion of the line, line losses etc.