Incorporating Shift Factor Approximations into the SMART-ISO Calculation of Real-Time LMPs

Abstract

This thesis examines the effects of allowing variability in PJM’s AC power flow distribution. Currently, the SMART-ISO simulator of PENSA models the PJM wholesale electricity market operation with a few approximations. The purpose of this thesis is to improve the simulated environment by incorporating shift factor parameters that measure flexible changes in the AC power flow in order to calculate more realistic estimates of the real-time LMP values. Adding these perturbations to the previously inflexible flows in the SMART-ISO simulator resulted in prices proved to be more similar and aligned with PJM’s historical data. This is especially true in the seasonal months that have higher fluctuations in their real-time LMPs.