Market-based mechanism for multi-area power exchange management in a multiple electricity market

The cross-border trading in an interconnected multi-area power system (MAPS) has significantly increased in recent years. In this situation, the coordination of electricity markets in MAPS is very imperative. In this study, in the presence of multiple markets in an MAPS structure, it is assumed that there is a single market in each area, and the participation of external players in each market is possible. A market-based mechanism for power exchange management is designed by a proposed central coordinator entity. In this mechanism, two main roles are considered for the coordinator, namely, the determination of the external network equivalents for each area, and the management of power exchange in an iterative decision-making process to maintain system security. The designed mechanism uses the proposed power exchange management factors matrix. Then, a market process is run for the management of external player´s exchanges. The numerical results for a small-scale (15-bus) test system as well as the IEEE RTS-96 system are presented to demonstrate the effectiveness of the proposed mechanism.