Locational impacts of slack bus on locational marginal price

Transmission loss factor (TLF) is often used to determine network loss incorporated locational marginal price (LMP) in real-time market operation. Taking into account that TLF is separately obtained by means of AC network model, TLF is itself very depend on the location of slack bus. Thus, an appropriate selection of slack bus site would be very important to evaluate efficient locational marginal price. This paper presents the theoretical review and numerical illustrations to explore the locational impacts of slack bus on LMP. IEEE 30-bus is used as system model, and modified DC-OPF is developed for numerical simulation. With simulation results, this paper proposed the consideration of spatial effects of slack bus in determining efficient locational marginal price.