Locational marginal prices (LMP) reflect market-based electricity prices at specific locations while taking into account transmission congestion.

Aurora has powerful nodal analysis capabilities to simulate the granularity of the nodal market by including a transmission network representation along with our tried and true fundamentals model.

Aurora uses a DC simulation algorithm to model the transmission system and to ensure that the resultant economic dispatch does not overload any elements in the system. The price of electricity at each node in the network is calculated as a shadow price which is based on the forecasted demand for the nodes in the simulation and the marginal cost of the optimized, dispatchable resources that meet this demand. The pricing algorithm determines all LMP components (the marginal costs of energy, congestion, and losses) at every node in the system.

This approach simulates security-constrained systems with enhanced unit commitment and dispatch logic to properly account for those security constraints to produce nodal prices.

This nodal analysis capability enables decision makers to understand the effects of LMP whether they are evaluating power purchases or sales, preparing auction bids for financial transmission rights (FTR) or congestion revenue rights (CRR), or evaluating the costs and benefits of a new or upgraded transmission line.
Our nodal capability is a complete solution with the data needed to perform LMP analyses.

Use Aurora to:

Features include:

Available Nodal Data

Immediately simulate LMP markets with prepared data to map the Aurora North American Database to the ISO delivered power flows. These additional input tables, which include updated hub definitions, interfaces, and contingencies, ensure that fundamental details like demand, costs of generation, and fuel data flow seamlessly into the nodal solution. This data is fully mapped, formatted, and is ready-to-run upon installation. One tool, one database – a more granular solution.
Nodal analysis data is currently available for the following markets:

Nodal data can only be delivered to entities that have received Critical Energy Infrastructure Information (CEII) approval from FERC or approval from an appropriate ISO, RTO, pool, etc. that provides nodal data. EPIS is required, prior to delivery, to confirm that the receiving entity has the appropriate approval.

Back to Aurora