Locational Marginal Pricing

Battery Energy Storage  *  Dispatchable Wind  *  Net Zero Energy 
Smart Grid  *  Solar Cogeneration
sm  *  Solar Trigeneration sm


Locational Marginal Pricing

What is Locational Marginal Pricing?

Locational Marginal Pricing, or LMP, is a market-pricing solution for ensuring the efficient use of the electric power transmission system when "congestion" occurs within the electric power grid.

What is Congestion?

Congestion occurs within the electric power grid when one or more restrictions on the grid prevents the economic - and most expensive power supply - from serving electric power demand. For example, the electric power transmission lines may not have enough capacity to carry all of the electricity to meet the demand in a specific location. When this happens, it is referred to as a "transmission constraint." Locational Marginal Pricing includes the costs for supplying the more expensive electricity in these "constrained" locations, which then provides a precise, market-based solution for pricing the electricity, and includes the "costs of congestion."

Locational Marginal Pricing provides the participants of the marketplace, a clear, transparent and accurate signal of the price of electricity at every location along the electric power transmission lines within a specified electric grid. These LMP prices, in turn, reveal the value of locating new generation, upgrading transmission, or reducing electricity consumption elements needed in a well-functioning market to alleviate constraints, increase competition and improve the system's capabilities for meeting the electric power demand.


Locational Marginal Pricing & LMP Resources

Advertising  *  Business Development  *  E-commerce  *  Marketing  *  Renewable Energy






What is Battery Energy Storage?

Battery Energy Storage, and Battery Energy Storage systems (BESS) use stored electrical power in batteries, and feed this energy to the electric grid (building, or facility) at times when it makes economic sense.

For a "Net Zero Energy" building or facility, a Solar Cogeneration, or Solar Trigeneration energy system is used that stores excess solar power in the Battery Energy Storage system during the daytime, for use when the sun goes down, and during inclement weather.

Battery Energy Storage is an ideal solution for utility-scale wind farms, particularly in Texas, when most of the renewable energy is generated at night when the power isn't needed.

Battery Energy Storage is a leading "dispatchable wind" solution making wind power available 24 x 7.

And, Battery Energy Storage is an ideal demand side management, peak shifting or load leveling solution as well as reducing emissions

According to Sandia Labs in their report titled; "Energy Storage for the Electricity Grid; Benefits and Market Potential Assessment Guide" (February 2010), the market for energy storage exceeds $100 billion during the next ten years.


What is Frequency Regulation?

The electric grid is kept in balance at 60 hz. Any deviation from this may cause serious problems ranging from damage to destruction of electrical equipment to a blackout. Because the supply and demand of electricity is always changing, the grid's frequency is always changing and it is critical the electric grid to be kept in balance and maintain 60 hz. The continuous and instantaneous balancing of supply and demand of electricity is known as "frequency regulation" or frequency response.

Flywheel Energy Storage systems follow the regulation signal within a fraction of a percent. Unlike generation based frequency regulation, no fuel is consumed, and no emissions are generated. Analysis of presently used frequency regulation signals indicates that an energy storage module, which can store or deliver 1 MW for 15 minutes, would provide regulation services superior to services currently provided by generators.

According to Pike Research, the requirements for frequency regulation is expected to double between now and 2020.



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Locational marginal pricing, LMP, Battery Energy Storage, energy storage and renewable energy products and services include; advertising, advocacy, business development, e-commerce, energy, energy storage, engineering, engineering feasibility, front end engineering, marketing, online marketing, public relations, sales, strategic marketing solutions for companies seeking a durable competitive advantage in the energy, investment and renewable energy industries. Some products and services provided by partner companies or EPC affiliate companies, including a Top 20 ENR ranked company.

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