A robust mathematical framework for managing simultaneous feasibility condition in financial transmission rights auction

Objective of this paper is to suggest a robust and easy-to-implement mathematical framework for dealing with simultaneous feasibility condition in financial transmission rights (FTRs) auction. The framework suggested is robust in the sense that it provides a purely analytical basis for clearing option and obligation FTRs simultaneously. Formulation has been shown for a DC power flow based model. In order to get rid of the over-burden of a huge number of constraints that result in the basic formulation, we have developed a simple and elegant idea which is entitled as directional breaking. Application of directional breaking drastically reduces the number of constraints and, thus, renders the formulation to ease the computations