This question is based on a two-node network with one transm…

This question is based on a two-node network with one transmission line connecting the two nodes. Assume that a Regional Transmission Organization operates the electricity market for this system and that all generators provide supply offers equal to their marginal costs. Suppose in a certain hour,  Node A has 100 MWh of electricity demand and a generator with a marginal cost of $20/MWh. Node B has 200 MWh of electricity demand and a generator with a marginal cost of $45/MWh. Assume that both generators have 500 MW of capacity, but the transmission line connecting the two nodes has a capacity of 100 MW. Complete the following calculation: 1) What is the LMP at Node B? 2) What is the total revenue RTO collects from consumers? 3) What is the total payment from RTO to generators? 4) How much congestion revenue does the RTO collect in this market? Note: Please write your answers in integers or fractional numbers, for example, 1/5, 2, -3, etc. Write only numbers, and do not write unit in your answer.

According to the material presented in the lesson, cheap nat…

According to the material presented in the lesson, cheap natural gas and increasing wind and solar power on the grid have caused day-ahead and real-time energy market prices to decline. For generators that require capacity payment to break even, what effect should this have on their capacity payment requirement, i.e., capacity prices (in those regions that have capacity markets)?