Solution section
Critiques
Open questions, objections and unresolved design issues.
Critiques
Key questions include:
- How computationally and institutionally complex should central optimisation become?
- How should nodal-price volatility be hedged?
- Does nodal pricing provide a sufficient investment signal without additional capacity mechanisms?
- How should distribution networks and DER be integrated?
- Is interval-based reoptimisation responsive enough for increasingly continuous cyber-physical processes?
- Does marginal pricing provide the desired conception of fairness?
- Does treating users at the same node identically ignore differences in service history or system value?
LMP is best understood as a powerful transmission-level coordination architecture, not automatically a complete end-to-end electricity-system design.