Optimal electricity nodal pricing in a restructured electricity market

In the past decades, electricity markets have significantly restructured in developing countries. Under it, electricity nodal pricing has emerged as an efficient tool of network pricing and a key element of a competitive wholesale electricity market. In developing countries, the incorporation of high voltage direct current (HVDC) in ac transmission networks brought a significant techno-commercial change in the wholesale electricity market. The paper aims at basis of the nodal pricing, electricity nodal price formulation based on ac-dc optimal power flow, methodology testing on IEEE 30-bus and implementation on real transmission network of India, and to evaluate the impact of HVDC link, generation addition and transmission investment on the electricity nodal prices. Paper finally concludes that HVDC link and generation addition is vital to keep nodal prices low. This encourages competition in the wholesale electricity market in developing country.