Impacts of Renewable Energy Based Power Plants on LMP in Deregulated Electricity Markets: A Review

As global climate change and environmental issues continue to worsen, there has been a rise in interest in the usage of renewable energy sources (RES) all over the world. But, due to highly intermittent nature of such renewable energy based power plant, Locational Marginal Price (LMP) based electricity market is facing new challenges. LMP is the main parameter for responsibility of the electricity market's economics. In this paper, an overview of the literature is provided which mainly focused on emerging challenges regarding integration of renewable energy sources in LMP based electricity markets. Several studies have been highlighted which focus on the problems associated with the RES based power plant participation in deregulated electricity market such as optimal placement of RES, using energy storage system (ESS) along with RES and their impacts on LMP and social welfare maximization. Research gaps and possibility of future work in each of these topics have been discussed.