Question

Calculate the total value of the following FTR portfolio on a two node network. We'll label the nodes as Node A and Node B. The LMP at Node A is $20/MWh and the LMP at Node B is $30/MWh. 15 MW FTR from Node A to Node B 10 MW FTR from Node B to Node A

Answer 1

Given data,

given network is two node network;

given nodes are node A ,node B

LMP at node A = $20/Mwh

LMP at node B = $30/Mwh

FTR from node A to node B = 5Mw

FTR from node B to node A = 10Mw

FTR as obligations only are equalent to ARR(Auction Revenue Right)

ARR Target allocation= (ARR MW)*(LMP ARR sink-LMP ARR source).............(1)

From node A to Node B:

submitting values into eq(1)

ARR= (15Mw)*($30-$20)

=(15Mw)*($10)

=($150)

From Node B to Node A:

subdtuting values in eq (1)

ARR=(10MW)*($20-$30)

=(10MW)*(-$10)

=(-$100)

total value of the FTR portfolio= total ARR from Node A to Node B+ total ARR from Node B to Node A

=($150)+(-$100)

=$50