UC Santa Cruz

In electricity markets, the stepwise supply and demand curves may yield multiple clearing prices. Considering the possibility of rare occurrence of this circumstance, a simple and effective identification method can significantly reduce the computational complexity. Capitalizing on the relationship between the linear independence constraint qualification and the uniqueness of Lagrange multipliers, this paper proposed an approach by using independence constraint qualification to identify the existence of multiple dual solutions in the nodal pricing problem. The validity of the proposed method was corroborated by theoretical analysis and case studies.