LMP Market Analysis

Energy Markets styled according to Standard Market Design are designed around Locational Marginal Pricing (LMP).

Under LMP, each source and sink node (or zone) in the transmission system is assigned a price that is dependent upon the cost of the next (marginal) MW at that node. When congestion occurs on the transmission system, the re-dispatch cost to eliminate the congestion is assigned to the affected nodes through an increase in LMP at the affected nodes.

These evaluations are best done using large, complex models of the market and transmission system that are capable of producing LMPs at the nodal level. TEA maintains and regularly utilizes these models.

What's more, The Energy Authority can assist you in all manner of decisions that require an understanding of the effects of LMP from evaluating a seasonal power purchase, to bidding on FTRs, to deciding to enter--or exit--a market that uses LMP pricing.

With TEA, you benefit by having a partner that understands the theoretical underpinning of the market design as well as the operational realities of the Market--a powerful combination that ordinary consultants cannot duplicate.