Abstract
The behavior of DC load flow formulations when they are used in economic dispatch and nodal pricing models is discussed. It is demonstrated that non-negative prices in these models are sufficient to guarantee global optimality of any local optimum, even if the feasible region is not convex, and so a negative nodal price is an indicator of a possible loss in optimality. We also discuss the possible effect that negative prices might have on algorithms that assume this convexity.
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Acknowledgements
We would like to acknowledge the financial support provided by Fondecyt Grant #1080668 and the Royal Society of New Zealand International Science and Technology Linkages Grant ISATB04-I09. We want to thank Mr Tony Downward, Mr. Ignacio Alarcón and Mr. Rigoberto Torres for fruitful discussions on this topic.
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This work was funded by Fondecyt Grand No. 1080668 Chile’s government and the Royal Society of New Zealand International Science and Technology Linkages Grant ISATB04-I09.
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Palma-Benhke, R., Philpott, A., Jofré, A. et al. Modelling network constrained economic dispatch problems. Optim Eng 14, 417–430 (2013). https://doi.org/10.1007/s11081-012-9203-5
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DOI: https://doi.org/10.1007/s11081-012-9203-5