Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
6691714 | Applied Energy | 2014 | 11 Pages |
Abstract
This paper presents a multi-period auction for a day-ahead pool-based electricity market in which consumer payment for energy is minimized under uniform pricing. This optimization problem has been recently characterized as a non-separable, non-linear, mixed-integer, and combinatorial problem for which exact solution techniques are unavailable. We present a novel approach suitable for existing mixed-integer linear solvers. A major contribution of this paper is the explicit characterization of uniform market-clearing prices as primal decision variables. The proposed methodology allows considering both quadratic and piecewise linear supply offers. In addition, the market-clearing procedure also takes into account inter-temporal operational constraints such as start-ups, ramp rates, and minimum up and down times, which may be part of generation offers. This approach provides the system operator and market agents with a valuable tool to assess consumer payment minimization versus currently used declared social welfare maximization. This conclusion is backed by simulation results obtained with off-the-shelf software.
Related Topics
Physical Sciences and Engineering
Energy
Energy Engineering and Power Technology
Authors
Ricardo Fernández-Blanco, José M. Arroyo, Natalia Alguacil,