Spot pricing of capacities for generation and transmission of reserve in an extended Poolco model

Aganagic, M.; Abdul-Rahman, K.H.; Waight, J.G.

doi:10.1109/59.709110

Cited by 48 publications

(30 citation statements)

References 9 publications

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“…This is a step that, as stated by the authors, requires engineering judgment and off-line studies. Other authors [10]- [12] have also considered security-constrained models including the transmission network and flow constraints, with prespecified nodal or area reserves.…”

Section: Introductionmentioning

confidence: 99%

Energy and Reserve Pricing in Security and Network-Constrained Electricity Markets

Arroyo

Galiana

2005

IEEE Trans. Power Syst.

211

170

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This paper analyzes some unresolved pricing issues in security-constrained electricity markets subject to transmission flow limits. Although the notion of separate reserve types as proposed by FERC can be precisely and unambiguously defined, when transmission constraints are active, the very existence of separate reserve prices and markets is open to question when the prices are based on marginal costs. Instead, we submit here that the only products whose marginal costs can be separately and uniquely defined and calculated are those of energy and security at each node. Thus, under marginal pricing, at any given network bus all scheduled reserve types should be priced not at separate rates but at a common rate equal to the marginal cost of security at that bus. Furthermore, we argue that nodal or area reserves cannot be prespecified but must be obtained as by-products of the market-clearing process. Simulations back up these conclusions.Index Terms-Contingency-constrained scheduling, demand-side reserve, electricity markets, security and energy pricing, transmission constraints, up and down-spinning reserve.

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Section: Introductionmentioning

confidence: 99%

Energy and Reserve Pricing in Security and Network-Constrained Electricity Markets

Arroyo

Galiana

2005

IEEE Trans. Power Syst.

211

170

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“…In [2], the dispatch problem of the balancing market considers both the regulation cost and the opportunity cost of generators which provides reserves for the system. In [3], demand response is also considered with regulation cost and opportunity cost in modeling the dispatch problem. In [4] the dispatch problem is formulated for both deterministic and elastic constraints.…”

Section: Introductionmentioning

confidence: 99%

“…Formulating real-time balancing market and designing different methods to reduce the cost of ancillary services are popular topics in both engineering and economics literature. References [2], [3] and [4], model the reserve services apart from day-ahead spot market. In [2], the dispatch problem of the balancing market considers both the regulation cost and the opportunity cost of generators which provides reserves for the system.…”

Section: Introductionmentioning

confidence: 99%

The diversification benefit of additional transmission capacity

Sarfati

Hesamzadeh

2013

2013 IEEE Grenoble Conference

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Transmission investment yields two major benefits: (a) it allows cheaper remote generation to substitute for more expensive local generation, (the 'efficiency (transportation) benefit') and (b) by increasing the diversification of uncorrelated generation sources, allows a reduction in the volume of balancing services required (the 'diversification benefit'). Conventional transmission planning processes tend to focus exclusively on the efficiency benefit. It is well known that increasing wind penetration increases the need for balancing services. The purpose of this study is to develop a mathematical model for quantifying the diversification benefit for transmission investment. To do this the day-ahead spot market and real-time balancing market are mathematically formulated as two-step economic dispatch. This two-step economic dispatch is formulated as one-shot optimization problem. The new optimization problem calculates the results of the day-ahead spot market dispatch and real-time balancing market dispatch in one optimization problem. The new formulation is a linear programming problem which calculates the dispatch cost and the economic deviation from the dispatch cost. This two-step economic dispatch is used for quantifying the diversification benefit of the additional transmission capacity. A decomposition approach is proposed to decompose the total benefit of additional transmission capacity into the efficiency benefit and the diversification benefit. To explain the diversification benefit and its developed two-step economic dispatch, the thirtynode example system is studied. The numerical results show that the proposed methodology in the paper can model and quantify the diversification benefit of additional transmission capacity.

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“…Dealing with this problem, Wong et al [13] proposed a Simulated Annealing (SA) based approach to solve a security constrained bi-criterion economicemission load dispatch problem. In References [14][15][16], security-constrained models including the line flow constraints with prespecified nodal or area reserves are considered. Also, Arroyo and Galiana, [12] proposed a formulation for market-clearing process in the form of an optimization problem that accounts for transmission flow limits (using DC load flow) and two types of reserves offered by both generators and loads.…”

Section: Introductionmentioning

confidence: 99%

Incorporating power system security into market‐clearing of day‐ahead joint energy and reserves auctions

Aghaei¹,

Shayanfar²,

Amjady³

2008

Int Trans Elec Energy Syst

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SUMMARYThis paper is intended to introduce a technique for incorporating system security into the clearing of day-ahead joint electricity markets, with particular emphasis on the voltage stability. A Multiobjective Mathematical Programming (MMP) formulation is implemented for provision of ancillary services (Automatic Generation Control or AGC, spinning, non-spinning, and operating reserves) as well as energy in simultaneous auctions by pool-based aggregated market scheme. In the proposed market-clearing structure, the security problem, as an important responsibility of ISO, is addressed and a nonlinear model is formulated and used as the extra objective functions of the optimization problem. Thus, in the MMP formulation of the market-clearing process, the objective functions (including augmented generation offer cost, overload index, voltage drop index, and loading margin) are optimized while meeting AC power flow constraints, system reserve requirements, and lost opportunity cost (LOC) considerations. The IEEE 24-bus Reliability Test System (RTS 24-bus) is used to demonstrate the performance of the proposed method.

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Spot pricing of capacities for generation and transmission of reserve in an extended Poolco model

Cited by 48 publications

References 9 publications

Energy and Reserve Pricing in Security and Network-Constrained Electricity Markets

Energy and Reserve Pricing in Security and Network-Constrained Electricity Markets

The diversification benefit of additional transmission capacity

Incorporating power system security into market‐clearing of day‐ahead joint energy and reserves auctions

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