Computation and Analysis of Market Clearing Price for A Deregulated Power Market

This paper focuses on implementing power system optimization for forecasting market prices in deregulated electricity markets. Most of the electricity markets are controlled by particular small group of firms rather than perfect competition. The electricity price determination is the long term process which depends upon cost of production, load demand, availability of generation, unit commitment and the transmission constraints. In order to determine the optimal power flow, it is necessary to know about the dispatch schedule of power generators with low cost by satisfying the system constraints like real and reactive power. In the recent energy trading scenario, determining the market clearing price place a vital role. The marginal costs are analysed during congestion on the power system by considering three cases viz. line contingency, generator contingency and increase in load. Power World Simulator is used for simulation of the IEEE 30-bus system for optimal power flow and practical analysis. By employing linear programming method, the effect of marginal cost is observed with and without congestion.