Linear Programming And Its Node In The Tariff Analysis Applications

As the power industry's market-oriented reform,the pricing mechanism of electricity market is required to be efficient,transparent, reasonable and accurate,but these features are often difficult to balance, so a pricing mechanism which is easy to understand and can reduce the burden of consumers is urgently needed.Many countries and regions(such as New Zealand,Chile,California,USA,etc.)make nodal price a key tool of the pricing mechanism of electricity market.Nodal price reflects the prices of different regions due to different physical characteristics of the power grid.Node price is very effective and accurate to identify the transaction price of electricity market.Node price has become an important economic signal which guided the electricity market to be efficient and order.The marketization of the power industry in China and other countries is discussed firstly,but with the constantly development of power system, management costs is increasing under vertical integration mode,so the introduction of competition has been necessary.And in a competitive electricity market,the spot price is very important information,it could affect the contract price,and to encourage production, consumption and investment.Therefore,making a correct price is the key problem to ensure the power system efficient.The basic theory of linear programming is given and the simplex method, Karmarkar' s projective algorithm and primal-dual interior-point method is proposed and analyzed.What is more,the short comings and advangtages of these three methods are also discussed.The concept and economical meaning of nodal price are analyzed,based on DC power flow and the suppose that production curve is linear,the linear programming model of nodal price and the method to solve this modelis given. finally a three-bus system and the IEEE thirty-bus system is calculated and analyzed in order to prove the validity of the model and the method.The mechanism of nodal price has been discussed on the basis of linear programming,the model is simple and valid,it can give a direction for the development of power system.