Integrated mathematical model for uniform purchase prices on multi-zonal power exchanges

As a result, difficulties arise during the mathematical formulation of several components. The officially described calculation of uniform purchase prices for demand bids across different price regions is one of the most complicated issues. It can be straightforwardly implemented only in non-convex mixed integer programs (MIPs) which are extremely hard to solve. This paper presents a new formulation to incorporate these prices into the usual and computationally efficient convex MIP model of European PXs. Benefits and limitations of the proposal are discussed and also demonstrated with numerical tests.