Hello!

Following the question that most of you had about the strange results in the nodal prices in section A of the economic dispatch project, I would like to draw your attention to the following explanation:

The locational marginal price (LMP)  is defined as the cost of the next MW of generation. So, the reason why in the intervals where only Gen_11 and Hydro are dispatching the price is $35 is because the next MW of generation would have to be supplied from Gen_12 as Gen_11 and Hydro are both outputting as much as they possibly can. Gen_11 is outputting 600MW which is its limit due to the Max Capacity property. Hydro is constrained by the Max Capacity Factor Day property which is set to 25%. The average generation from Hydro over the entire day is 125MW which is 25% of its Max Capacity which is 500MW. This means that in every period throughout this day it cannot produce one more MW and thus the LMP jumps over this generator in the price stack to Gen_12.

Hope I made it more clear.

Regards,

Mohamadreza