The privatization and deregulation of electricity markets has a very large impact on almost all the power systems around the world. Competitive electricity markets are complex systems with many participants who buy and sell electricity. Much of the complexity arises from the limitations of the underlying transmission systems and the fact that supply and demand must be in balance at all times. When the producers and consumers of electric energy desire to produce and consume in amounts that would cause the transmission system to operate at or beyond one or more transfer limits, the system is said to be congested. In this paper, Locational Marginal Pricing approach is adopted to locate the spots of congestion in the Indian utility system under various critical conditions of the system, such as transmission line outage, increase in loads and generation failure and the results are found efficient in minimizing the congestion.
Key words: Electricity, markets, transmission, congestion
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