DocumentCode :
2284958
Title :
Congestion pricing in electricity markets: Infeasibility, sub-optimality and degeneracy
Author :
Rios-Zalapa, Ricardo ; Wan, Jie ; Zak, Eugene ; Cheung, Kwok
Author_Institution :
ALSTOM Grid Inc., Redmond, WA, USA
fYear :
2011
fDate :
25-27 May 2011
Firstpage :
20
Lastpage :
25
Abstract :
Infeasible, sub-optimal and/or degenerate solutions of the economic dispatch problem cause undesirable effects on the ex-ante and ex-post market price calculations. To determine market prices, this paper explores a scheme that relies on a dual formulation of the economic dispatch problem, stated in terms of prices, i.e. prices become variables. With such a dual perspective, direct control of the prices is achieved, e.g. minimizing the side payments needed to comply with a revenue sufficiency guarantee to market participants. The proposed method combines a primal formulation to find the dispatch (MW), and a dual formulation to determine Locational (nodal) Marginal Prices (LMPs) into a single primal-dual model. Having both, dispatch levels (MW) and nodal prices ($/MWh), as variables, opens possibilities not explored before, e.g. constraints and objective functions that combine both, MW and prices. Computational experiments demonstrate the benefits of the alternative proposal.
Keywords :
load dispatching; power markets; congestion pricing; economic dispatch problem; electricity market pricing; infeasible suboptimal degenerate solution; locational marginal price; market participant; objective function; revenue sufficiency; single primal dual model; Economics; Equations; Europe; Optimization; Pricing; Proposals; Tuning; LMPs; congestion; degeneracy; duality; electricity markets;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Energy Market (EEM), 2011 8th International Conference on the European
Conference_Location :
Zagreb
Print_ISBN :
978-1-61284-285-1
Electronic_ISBN :
978-1-61284-284-4
Type :
conf
DOI :
10.1109/EEM.2011.5952972
Filename :
5952972
Link To Document :
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