Distribution Locational Marginal Pricing under Generation and Network Scarcity Conditions
Zejun Ruan, Anthony Papavasiliou, Mehdi Madani · 2025
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Description
Zejun Ruan and co-authors address, in a 2025 review paper, how to price electricity at the neighborhood level when both power and backup are scarce. Local prices that vary by spot on the grid can steer where batteries and solar panels get built. The catch is reserve power: a promise to deliver later only counts if the wires can carry it then. The team folds that deliverability test into the pricing math in a form computers can handle at scale.
Their box-based design matches older methods on simple radial grids and extends to meshed ones. Worked cases show how prices shift under crowding and under different flows of energy and reserve. Skipping the deliverability test, they warn, distorts the build signals and can lure investment to the wrong streets.
Catalog record
| CREATOR | Zejun Ruan, Anthony Papavasiliou, Mehdi Madani |
|---|---|
| YEAR | 2025 |
| COLLECTION | PAPERS |
| FORMAT | TXT |
| FILE SIZE | 118 KB |
| VERSION | 1.0 |
| LICENSE | CC BY 4.0 |
| RIGHTS | CC BY |
| SOURCE | Europe PMC |