Price maker self-scheduling in a pool-based electricity market: a mixed-integer LP approach

Author

de la Torre, Sebastian ; Arroyo, José M. ; Conejo, Antonio J. ; Contreras, Javier

Author_Institution

Escuela Tecnica Superior de Ingenieros Industriales, Univ. de Castilla-La Mancha, Ciudad Real, Spain

Volume

17

Issue

4

fYear

2002

fDate

11/1/2002 12:00:00 AM

Firstpage

1037

Lastpage

1042

Abstract

This paper addresses the self-scheduling problem faced by a price-maker to achieve maximum profit in a pool-based electricity market. An exact and computationally efficient mixed-integer linear programming (MILP) formulation of this problem is presented. This formulation models precisely the price-maker capability of altering market-clearing prices to its own benefits, through price quota curves. No assumptions are made on the characteristics of the pool and its agents. A realistic case study is presented and the results obtained are analyzed in detail.

Keywords

costing; integer programming; linear programming; power markets; power system economics; power system interconnection; scheduling; tariffs; case study; market-clearing prices; maximum profit; mixed integer linear programming; mixed-integer LP approach; pool-based electricity market; price maker self-scheduling; price quota curves; price-maker capability; Cost function; Economic forecasting; Electricity supply industry; Linear programming; Optimal scheduling; Portfolios; Production;

fLanguage

English

Journal_Title

Power Systems, IEEE Transactions on

Publisher

ieee

ISSN

0885-8950

Type

jour

DOI

10.1109/TPWRS.2002.804945

Filename

1137591