Question
1. In a three-node network, the LMP at node A is $50/MWh; the LMP at node B is $10/MWh and the LMP at node C
1. In a three-node network, the LMP at node A is $50/MWh; the LMP at node B is $10/MWh and the LMP at node C is $75/MWh. Calculate the total value of the following portfolio of Financial Transmission Rights:
- A 10 MW Financial Transmission Right with node B as the source and node C as the sink
- A 5 MW Financial Transmission Right with node C as the source and node A as the sink
- A 10 MW Financial Transmission Right with node A as the source and node C as the sink
In this question, assume that all Financial Transmission Rights are structured as obligations, not options.
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