LMP in single auction model of a restructured power system using bat algorithm

In restructured electricity markets, an effective transmission pricing method is required to address transmission issues and to generate correct economic signals. Transmission line constraints can result in variations in energy prices throughout the network. These prices depend on generator bids, load levels and transmission network limitations. A congestion charge is incurred when the system is constrained by physical limits. Locational Marginal Pricing (LMP) has become popular method in restructured power markets to address the congestion charges. This paper presents LMP computation with LP, GA and proposed Bat algorithm (BA) under three different loss cases in single auction model. In single auction model only suppliers submit the bids and the load is assumed to be inelastic. Fixed and Linear bids are considered for generators. All the methods are tested on IEEE 14 bus system, New England 39 bus system and Indian 75 bus system. Linear bids with BA show most optimal fuel cost compared to all other methods.