EnleashedEnleashed
Fix the energy market
Draft

PJM-style Locational Marginal Pricing

A centrally optimised nodal market in which wholesale prices reflect marginal energy cost, transmission congestion and losses, supplemented by capacity and ancillary-service markets.

Solution section

Distribution & DER

How distribution networks, households and distributed resources participate.

Distribution & DER

The transmission-level LMP architecture does not automatically provide a detailed distribution-network coordination mechanism.

Smaller resources can participate through registration, aggregation and specialised market arrangements.

However:

transmission-node feasibilitydistribution-device feasibility.\text{transmission-node feasibility} \neq \text{distribution-device feasibility}.

A complete DER architecture therefore requires an additional distribution-level layer.