Transmission Development Projects Assessment Using Simulated Market Prices

In a liberalized electricity industry, bulk electricity prices transacted in the market take into account grid congestion and technical losses via locational marginal prices (LMP) so we emphasize that LMP can be an important driver for grid development. However, in many jurisdictions, including in the Philippines, the system operation who is responsible for grid development is independent from the market operation. In this paper, we present a procedure for analyzing grid development scenarios using market prices and index. We adapted the IEEE 24-bus RTS to capture nuances in a Philippine grid and then used PSS/E - Python optimal power flow co-simulation for LMP calculations.