Each constraint equation has a discrete ‘Marginal Value’ for every dispatch interval when it is invoked.
- It is measured in $/MWh
- and (broadly speaking) reflects the ‘cost’ of that constraint to NEMDE’s dispatch solution (though this should not be confused with the ‘cost’ to consumers).
The Marginal Value is calculated as the ‘cost’ impact of increasing the RHS of that particular constraint equation by 1MW (i.e. assuming that bid prices are input ‘costs’ in the NEMDE co-optimised dispatch solution).
A Marginal Value can be
- negative,
- $0/MMh, or
- positive
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