Shadow Price Analysis of Potential Northeast Asia Power System Interconnection

Mathematical model for optimization of generating and transmitting capacity expansion and prospective operating modes of power systems is applied for the study. Dual variables/shadow prices are formed at optimization of power system interconnection on the model. They are complex values comprising different elements formed at various constraints of the model. Shadow prices are used for analysis of prospective power system interconnection in Northeast Asia. The analysis revealed benefit of the interconnection for electricity consumers.