Energy and transmission allocation in overlapping electricity markets : Incorporating N−1 security and accounting for losses

The possibility for market participants to place their bids in markets where they are not geographically located is investigated in this paper. An iterative procedure enabling the simultaneous clearing of those overlapping markets by transaction schedulers while managing the resulting pre and post-contingency congestion is proposed. Transmission losses are calculated during the iterations and are accounted for by allocating them to the various transaction schedulers. The procedure is illustrated and commented on a test system.