Nodal price uncertainty analysis considering random failures and elastic demand

The introduction of competition in the electric power industry and customer choices on its reliability and price have changed the pricing mechanism. Uniform price used in conventional power system has been replaced by nodal prices in a deregulated power system. This paper investigated the price uncertainty caused by random failures and customer response. The expected nodal prices are used to represent the price uncertainty. The effect of customer response on nodal price is considered using elastic demand. The results of IEEE-RTS are presented.