A nodal-based security-constrained day-ahead market clearing model incorporating multi-period products

• European-type day-ahead market clearing with nodal network representation.
• Coordination of market clearing with AC Load Flow within an iterative process.
• Incorporation of linearized effective transmission (N & N − 1) security constraints.
• The attained LMPs are independent of the selection of the system reference node.
• Handling (rejection) of possible Paradoxically Accepted Blocks (PABs).

A model for the solution of a European-type day-ahead market with multi-period products is presented in this paper, considering a nodal network representation and including N and N − 1 transmission security constraints. An iterative process is employed, similar to the process implemented in the U.S. markets, coordinating a market clearing problem (formulated as a Mixed Integer Linear Programming—MILP model) with an AC Load Flow solution, in order to check the apparent power flows of transmission lines against their respective limits, accounting the influence of voltage magnitudes and reactive power on the system lines’ power flows and calculate the Locational Marginal Prices—LMPs. A distributed-slack bus modelling is used, in order to ensure the robustness of the attained LMPs, so that they are independent of the selection of the system reference node. The model is evaluated in terms of pricing and computational efficiency using the Balkan nodal power system.