A framework for the simultaneous clearing of multiple markets within a common transmission system

Abstract

Abstract-The possibility for market participants to place their bids in all the markets of an interconnection irrespective of where they are physically connected is investigated in this paper. A mechanism is proposed for managing the resulting congestion. It consists in iteratively sharing the transmission line capacities between the different market operators based each time on their present schedules. The algorithm is applied on a small test system. The results are assessed in terms of their property of being Nash equilibria and of their distance of the set of Pareto optimal operating points.

Locational marginal pricing‐based allocation of transmission capacity in multiple electricity markets

“…The three areas are identical as regard to the distribution of loads and the location and capacity of generators. However, they differ by the generator offers, which are the cheapest in area A and the most expensive in area C [24,25]. In Fig.…”

“…In [23], a cross-border trade problem through a set of models that represents different degrees of coordination both between the energy and transmission markets and among different TSOs is investigated. The possibility for the market participants to place their bids in the markets, where they are not geographically located, is investigated in [24,25]. In [26], a decentralised model based on AC load flow for the congestion management in forward markets for multilateral transactions, using the resource allocation technique, is proposed.…”