Nodal pricing is the emerging method for determining the impact of transmission congestion and losses on the price of electric energy. The method involves an optimization solution of costs subject to transmission constraints. This method bears more resemblance to the power flow than to a bidding program. Nodal pricing is applied, in varying forms, to energy markets, congestion rents, firm transmission rights, and others. For anyone participating in such markets, understanding the fundamentals of nodal pricing is a must.
This course provides an introductory coverage of the basics of modeling and calculating nodal pricing, starting from power flow models and cost curves. Case studies and exercises help bring home the concepts while providing real-life examples. The investment of your time and focus will surely be rewarded with a jump start on this important concept of nodal pricing.