A Practical Method for Analyzing the Impact of Grid Constraints Based on the Optimal Sensitivity of Locational Marginal Pricing

This paper presents an AC Optimal Power Flow (AC-OPF) based power flow analysis method using optimal sensitivity of Locational Marginal Pricing (LMP) to evaluate grid constraints. The objective of the method is to provide a grid index to quantity the impact of grid constraints that is useful for both grid operators and grid users. The proposed optimal sensitivity of LMP can quantity the level of impact of grid constraints using the amount of change in LMP due to grid constraints. The method can enable quantitative analysis of when, where and how much available transmission capacity/power should be prepared and supply and regulating power should be allocated and deployed. The effectiveness and practicality of the method are demonstrated through the congestion management in a real scale power system model.