This question is based on two node network with one


This question is based on a two node network with one transmission line connecting the two nodes. Assume that a Regional Transmission Organization operates the electricity market for this system, and that all generators provide supply offers equal to their marginal costs. Node A has 10 MWh of electricity demand and a generator with a marginal cost of $20/MWh. Node B has 10 MWh of electricity demand and a generator with a marginal cost of $50/MWh. Assume that both generators have 100 MW of capacity, and the transmission line connecting Nodes A and B has 5 MW of capacity. How much congestion revenue does the RTO collect in this market?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: This question is based on two node network with one
Reference No:- TGS02456938

Expected delivery within 24 Hours