ABSTRACT: We will discuss the use of principal component analysis (PCA) on electricity price data to detect the most salient congestion patterns in an electricity transmission grid; discrepancies between prices at various nodes (locations) in the grid indeed indicate limitation of transmission capacity between these nodes. Outputs from the PCA along with some data visualization tools are shown to make the identification of such patterns seamless and straightforward. An empirical analysis is conducted for three North American power systems, namely NYISO, ISO New England and PJM.
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