Markets

Locational marginal price (LMP)

The cost of supplying the next megawatt-hour of electricity at a specific node on the grid. Comprises three components: energy (system-wide marginal cost),...

⏱ min read · Markets · Glossary

Locational marginal price (LMP)

Category: Markets

The cost of supplying the next megawatt-hour of electricity at a specific node on the grid. Comprises three components: energy (system-wide marginal cost), congestion (cost of transmission constraints), and losses (cost of electrical losses). Published every 5 minutes in real-time markets.

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