Determination of Locational Marginal Redispatch Prices of a Mixed-Integer Congestion Management Problem

Locational marginal prices (LMP) are the basis for many studies on energy economic questions. LMPs are determined from the dual solution of the primary optimization problem. If the optimization problem is formulated linearly, dual variables can be read from the closed-form solution using commercially available solvers such as CPLEX or GUROBI. Mixed integer problems (MILP) are no longer possible, and the dual solution's decomposition and iterative determination are required. This paper presents an extended Lagrangian method for congestion management simulation, which can determine locational marginal redispatch prices (LMRP) by considering mixed-integer constraints of thermal power plants considering startup and shutdown costs.