Consider the two-bus power system of Problem 6.2. Given that K = R/V = 0.0001 MW...

 

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Consider the two-bus power system of Problem 6.2. Given that K = R/V = 0.0001 MW for the line connecting buses A and B and that there is no limit on the capacity of this line, calculate the value of the flow that minimizes the total variable cost of production. Assuming that a competitive electricity market operates at both buses, calculate the nodal marginal prices and the merchandising surplus. [Hint: use a spreadsheet]. D = 2000 MW B A FAB PB DB = 1000 MW Figure P6.2 Two-bus power system for Problems 6.2, 6.3, 6.4, 6.10 and 6.11 MCA 20+0.03PA $/MWh = MCB 15+0.02PB $/MWh = = Consider the two-bus power system of Problem 6.2. Given that K = R/V = 0.0001 MW for the line connecting buses A and B and that there is no limit on the capacity of this line, calculate the value of the flow that minimizes the total variable cost of production. Assuming that a competitive electricity market operates at both buses, calculate the nodal marginal prices and the merchandising surplus. [Hint: use a spreadsheet]. D = 2000 MW B A FAB PB DB = 1000 MW Figure P6.2 Two-bus power system for Problems 6.2, 6.3, 6.4, 6.10 and 6.11 MCA 20+0.03PA $/MWh = MCB 15+0.02PB $/MWh = =