Impact Analysis of Locational Marginal Price Subject to Power System Topology Errors

Abstract

This paper formulates and analyzes the impact of power transmission network topology error on real-time electricity market prices. We consider the scenario in which the undetected false status of circuit breakers from topology error processing may lead to wrong modeling of real-time network topology, which, in turn, misleads the results of state estimation and real-time economic dispatch. In particular, we focus on the economic impact of this circuit breaker-induced network topology error on locational marginal price (LMP). The primary goal of this paper is to derive a simple LMP sensitivity index that accounts for the relationship between the change in network topology and LMP. The proposed sensitivity index provides system operators a simple but effective screening of the impact of topology errors on real-time LMP. The validity of the derived sensitivity index is verified and illustrated with numerical examples in the IEEE-14 bus system.