Locational Marginal Pricing for Transmission Congestion Under Uncertain Loads in Decentralized Energy Trading

Decentralized energy markets fulfil power transmission and distribution under a competitive scenario. Revenue of the energy market is a complex function of the power transmitted. Each element in the transmission network contributes to losses and congestion of transmission lines. To address transmission congestion, Locational Marginal Pricing (LMP) was introduced for profitable energy transactions. With penetration of renewable energy, decentralized trading incorporates uncertainty constraints leading to variable costs in deregulated energy market. In this paper, a novel strategy is proposed where an uncertainty constraint based LMP is modelled to solve multi objective congestion relief. A case study is presented in sub transmission system with uncertain loading showing that LMP can reduce transmission congestion under certain conditions.