Abstract
Conference Title: 2018 North American Power Symposium (NAPS) Conference Start Date: 2018, Sept. 9 Conference End Date: 2018, Sept. 11 Conference Location: Fargo, ND, USA In the current practice, locational marginal prices (LMPs) are computed every few minutes by solving an optimization problem with continuous variables only. Generator on/off statuses are decided by the day-ahead unit commitment scheduling procedure. Thus, unit commitment and locational marginal price computing are two separate steps. This paper presents a model that substitutes the traditional two-step method. It is based on bilevel programming. The proposed problem determines generator on/off status and locational marginal prices simultaneously. The efficiency of the model is demonstrated on the 5- and 30-bus systems.