JPS_V1_N1_RP1 Dhayalini K. Deepu M.S. Sathiyamoorthy S. Journal on Power Systems Engineering 2322–0376 1 1 9 17 Locational Marginal Prices (LMPs), Wind Power Market, Restructured Power Systems, Electrical Power Grids This paper discusses the different strategies which enable wind power market to enhance reliability to integrate competitive power grids economically. Wind mills are newly globalized techniques to the Restructured Power Systems that are difficult to schedule due to variability and un-predictability. Now a day’s Wind energy is termed as Price Taker due to the issues like Transmission Congestions. Although Locational Marginal Pricing (LMP) plays an important role in many restructured wholesale power markets, the detailed derivation of LMPs as actually used in industry practice is not presently available. This paper demonstrates these problems by two sections. Firstly, the overview, definitions, characteristics, settlements, observations and examples for the Locational Marginal Prices or LMPs for particular generators that are developed on the basis of congested and uncongested case. Secondly, calculation for AC and DC optimal power flow models. Wind energy generation system for Restructured Power Systems is simulated using MATLAB. February – April 2013 Copyright © 2013 i-manager publications. All rights reserved. i-manager Publications http://www.imanagerpublications.com/Article.aspx?ArticleId=2204