Bilevel Programming-Based Unit Commitment for Locational Marginal Price Computation

In the current practice, locational marginal prices (LMPs) are computed every few minutes by solving an optimization problem with continuous variables only. Generator on/off statuses are decided by the day-ahead unit commitment scheduling procedure. Thus, unit commitment and locational marginal price computing are two separate steps. This paper presents a model that substitutes the traditional two-step method. It is based on bilevel programming. The proposed problem determines generator on/off status and locational marginal prices simultaneously. The efficiency of the model is demonstrated on the 5- and 30-bus systems.