Market Solution in ERCOT Balancing Energy Market

This paper introduces the ERCOT Balancing Energy Market, which consists of a Zonal Congestion Management Market and a Local Congestion Management Market. The ERCOT Energy Market is not a fully competitive market and appropriate measures are needed to prevent monopoly prices. A decomposition method is proposed to implement the "market solution" measure in the ERCOT Local Congestion Market to eliminate any monopoly price. The market solution measure is further extended to the ERCOT Zonal Congestion Management Market to eliminate any sacrificial bids and to set feasible market clearing prices that reflect the true market. A case study has been conducted using the proposed market solution identification method and the market clearing price recalculation method.