Solution section
Vision
The organising idea: what problem this architecture is trying to solve and how it expects the electricity system to work.
Vision
PJM-style Locational Marginal Pricing attempts to integrate wholesale economic dispatch and transmission-network scarcity into one central optimisation framework.
The central idea is:
The marginal value of electricity depends on where it is produced or consumed.
Rather than giving a large region one wholesale settlement price, the architecture calculates locational prices across the transmission system.
The objective is to make the operational price signal reflect marginal energy cost, transmission congestion and marginal losses.