An Optimization Model for the Electricity Market Clearing Problem With Uniform Purchase Price and Zonal Selling Prices

Savelli, Iacopo; Giannitrapani, Antonio; Paoletti, Simone; Vicino, Antonio

doi:10.1109/tpwrs.2017.2751258

Cited by 30 publications

(31 citation statements)

References 14 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Reference [36] uses a complementarity approach to clear a market with block and complex orders, which is extended to UPP in [37], where in both cases a heuristic process is used to handle paradoxical orders. Reference [38] proposes a bilevel model to clear a UPP market with simple stepwise orders, where the objective function maximize the surplus of the consumers. Reference [39] proposes an income based approach to overcome the non-linearities of the UPP, however this model cannot be extended to curtailable block orders.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The complete MILP model is reported in Appendix A. With respect to [38], curtailable profile block orders are now considered (both in UPP and non-UPP zones), a novel and equivalent UPP formulation is proposed, and the objective function represents the exact social welfare.…”

Section: Paper Contributionmentioning

confidence: 99%

“…In (38), the terms π t u g tk D max tk and ζ ti u g tk D max tk involve the products of a binary variable and a continuous variable, and can be handled as shown in (36)- (37). Furthermore, due to (9) and (13), the terms d w tk and d d tk refers to at-the-money UPP orders, where π t = P d tk , by definition.…”

Section: The Final Milp Modelmentioning

confidence: 99%

“…Furthermore, due to (9) and (13), the terms d w tk and d d tk refers to at-the-money UPP orders, where π t = P d tk , by definition. As a consequence, the terms π t d w tk and π t d d tk in (38) can be replaced by P d tk d w tk and P d tk d d tk , respectively. The term ζ ti d w tk in (38) is handled as follows.…”

Section: The Final Milp Modelmentioning

confidence: 99%

“…which involves only the product of a binary and a continuous variable, and can be handled as showed in (36)- (37). Finally, the only remaining non-linearity to handle is the term ζ ti k∈K π ti d d tk which is present not only in (38) but also in (29). To deal with this term we use a binary expansion.…”

Section: The Final Milp Modelmentioning

confidence: 99%

See 4 more Smart Citations

A new approach to electricity market clearing with uniform purchase price and curtailable block orders

et al. 2018

Self Cite

View full text Add to dashboard Cite

The European market clearing problem is characterized by a set of heterogeneous orders and rules that force the implementation of heuristic and iterative solving methods. In particular, curtailable block orders and the uniform purchase price pose serious difficulties. A block order spans over multiple hours, and can be either fully accepted or fully rejected. The uniform purchase price prescribes that all consumers pay a common price in all the zones, while producers receive zonal prices, which can differ from one zone to another.The market clearing problem in the presence of both the uniform purchase price and block orders is a major open issue in the European context. The uniform purchase price scheme leads to a non-linear optimization problem involving both primal and dual variables, whereas block orders introduce multi-temporal constraints and binary variables into the problem. As a consequence, the market clearing problem in the presence of both block orders and the uniform purchase price can be regarded as a non-linear integer programming problem involving both primal and dual variables with complementary and multi-temporal constraints.The aim of this paper is to present a non-iterative and heuristic-free approach for solving the market clearing problem in the presence of both curtailable block orders and the uniform purchase price scheme. The solution is exact, with no approximation up to the level of resolution of current market data. By resorting to an equivalent uniform purchase price formulation, the proposed approach results in a mixed-integer linear program, which is built starting from a non-linear integer bilevel programming problem. Numerical results using real market data are reported to show the effectiveness of the proposed approach. The model has been implemented in Python, and the code is freely available on a public repository.

show abstract