Abstract
Accurate sensitivity analysis of locational marginal price (LMP) is crucial for risk hedging and market management. This paper proposes multiparametric nonlinear programming for sensitivity analysis of LMP with nonlinear network loss, also known as lossy LMP. Global analytical solutions for lossy LMP and the corresponding critical regions are derived. An outer progressive cut algorithm is developed to constrain the network loss error within a specific range for the whole parametric domain. Case studies show the improved accuracy over methods with lossless or fixed loss factors, and a two-order-of-magnitude online speedup over Monte Carlo methods while maintaining lower total computational time.
Recommended Citation
Y. Huang et al., "Multi-Parametric Nonlinear Programming for Lossy LMP Sensitivity Analysis using Outer Progressive Cuts," IEEE Transactions on Power Systems, vol. 41, no. 4, pp. 2895 - 2909, Institute of Electrical and Electronics Engineers, Jul 2026.
The definitive version is available at https://doi.org/10.1109/TPWRS.2026.3670782
Department(s)
Electrical and Computer Engineering
Keywords and Phrases
Locational marginal price; multi-parametric nonlinear programming; network loss; outer progressive cuts; sensitivity analysis
International Standard Serial Number (ISSN)
1558-0679; 0885-8950
Document Type
Article - Journal
Document Version
Citation
File Type
text
Language(s)
English
Rights
© 2026 Institute of Electrical and Electronics Engineers, All rights reserved.
Publication Date
01 Jul 2026
