Auction design in day-ahead electricity markets

Contreras, Javier; Candiles, O.; Fuente, J.I. de la; Gómez, Tomás

doi:10.1109/59.932276

Cited by 40 publications

(20 citation statements)

References 3 publications

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“…In both Australia and New Zealand electricity market, there were a multi-round combinatorial auction in operation. In line with Contreras et al [21], this auction can minimize power system cost. Contreras et al [21] further make a comparison to social welfare change among the three kinds of auction: price-quantity uncorrelated single-round auction, price-quantity correlated single-round auction, price-quantity uncorrelated multi-round auction, suggesting that the latter is more efficient.…”

Section: Introductionsupporting

confidence: 53%

“…In line with Contreras et al [21], this auction can minimize power system cost. Contreras et al [21] further make a comparison to social welfare change among the three kinds of auction: price-quantity uncorrelated single-round auction, price-quantity correlated single-round auction, price-quantity uncorrelated multi-round auction, suggesting that the latter is more efficient. Obviously, the higher efficiency of resources allocation in electricity market, the greater indirect CO 2 abatement effect is brought by economic dispatch pathway.…”

Section: Introductionsupporting

confidence: 53%

“…To incentivize generators to implement CO 2 mitigation under constraints of electricity supply balancing with load demand, based on literature [9,10,12,18,21], this paper developed a novel dispatch model for wholesale electricity market on condition of CO 2 emissions trade. It couples carbon market with electricity market and utilizes price-quantity uncorrelated multi-round auction to organize both CO 2 allowances and power energy trade.…”

Section: Introductionmentioning

confidence: 99%

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An Optimal CO<sub>2</sub> Saving Dispatch Model for Wholesale Electricity Market Concerning Emissions Trade

Fu¹

2019

AJEE

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Deep CO 2 mitigation provides a challenge to fossil fuel-fired power industry in liberalized electricity market process. To motivate generator to carry out mitigation action, this article proposed a novel dispatch model for wholesale electricity market under consideration of CO 2 emission trade. It couples carbon market with electricity market and utilizes a price-quantity uncorrelated auction way to operate both CO 2 allowances and power energy trade. Specifically, this CO 2 saving dispatch model works as a dynamic process of, (i) electricity and environment regulators coordinately issue regulatory information; (ii) initial CO 2 allowances allocation through carbon market auction; (iii) load demands allocation through wholesale market auction; and (iv) CO 2 allowances submarket transaction. This article builds two stochastic mathematical programmings to explore generator's auction decision in both carbon market and wholesale market, which provides its optimal price-quantity bid curve for CO 2 allowances and power energy in each market. Through piece-wise adding up individual demand curve (supply curve) and matching with total supplied allowances (load demanded), market equilibrium is reached. Under this dispatch model, price upper-bound of bid allowances of generators is upward ordered and price lower-bound of bid electricity is downward ordered, according to their operational advantage from weak to strong. Meanwhile their bid electricity upper-bound gets respective capacity constraint or market share regulation. These features imply that the proposed model can prompt economic dispatch, improve resources allocation efficiency and bring about CO 2 mitigation effect. Numerical simulations also verified the validity of this CO 2 saving dispatch model.

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Section: Introductionsupporting

confidence: 53%

Section: Introductionsupporting

confidence: 53%

Section: Introductionmentioning

confidence: 99%

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An Optimal CO<sub>2</sub> Saving Dispatch Model for Wholesale Electricity Market Concerning Emissions Trade

Fu¹

2019

AJEE

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“…Since the process of the liberalization of electricity markets began, auction designs for day-ahead electricity markets have been in the focus of research [1,2]. As electricity is a special good in the sense that it cannot be economically stored, electricity market designs must always reflect the need for supply-demand balance.…”

Section: Introductionmentioning

confidence: 99%

A Two-Sided Price-Decoupled Pay-As-Bid Auction Approach for the Clearing of Day-Ahead Electricity Markets

Csercsik

2020

E3S Web Conf.

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In this paper we propose a possible alternative for conventional pay-as-clear type multiunit auctions commonly used for the clearing of day-ahead power exchanges, and analyse some of its characteristic features in comparison with conventional clearing. In the proposed framework, instead of the concept of the uniform market clearing price, we introduce limit prices separately for supply and demand bids, and in addition to the power balance constraint, we formulate constraints for the income balance of the market. The total traded quantity is used as the objective function of the formulation. The concept is demonstrated on a simple example and is compared to the conventional approach in small-scale market simulations.

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“…Various implementations of electricity market designs compared the differences between singleround and multi-round auctions in terms of maximization of social welfare, computational cost, resultant market prices, and so on in [2]. The results concluded that iterative bidding is not advisable for use in day-ahead markets.…”

Section: Introductionmentioning

confidence: 99%

Generation companies' adaptive bidding strategies using finite‐state automata in a single‐sided electricity market

Sheblé

Gutiérrez-Alcaraz

2011

Int Trans Elec Energy Syst

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SUMMARY This paper explores the use of genetic algorithms (GAs) in the development of the bidding strategies used by generation companies under two different market clearing mechanisms, uniform pricing and pay‐as‐bid pricing. The bidding strategies are represented by two modifications of a classical data processing structure known as finite‐state automata. Semi‐fixed fitness function and co‐evolutionary fitness function were incorporated in our GA. A third simple representation to obtain a comparison baseline for the other two representations, showing how their behaviors compare with a “standard” solution, was also incorporated. The strategies developed by our method were adaptive, and all GA types were based on maximizing profit in a competitive bidding situation. Copyright © 2011 John Wiley & Sons, Ltd.

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Auction design in day-ahead electricity markets

Cited by 40 publications

References 3 publications

An Optimal CO<sub>2</sub> Saving Dispatch Model for Wholesale Electricity Market Concerning Emissions Trade

An Optimal CO<sub>2</sub> Saving Dispatch Model for Wholesale Electricity Market Concerning Emissions Trade

A Two-Sided Price-Decoupled Pay-As-Bid Auction Approach for the Clearing of Day-Ahead Electricity Markets

Generation companies' adaptive bidding strategies using finite‐state automata in a single‐sided electricity market

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Auction design in day-ahead electricity markets

Cited by 40 publications

References 3 publications

An Optimal CO&lt;sub&gt;2&lt;/sub&gt; Saving Dispatch Model for Wholesale Electricity Market Concerning Emissions Trade

An Optimal CO&lt;sub&gt;2&lt;/sub&gt; Saving Dispatch Model for Wholesale Electricity Market Concerning Emissions Trade

A Two-Sided Price-Decoupled Pay-As-Bid Auction Approach for the Clearing of Day-Ahead Electricity Markets

Generation companies' adaptive bidding strategies using finite‐state automata in a single‐sided electricity market

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An Optimal CO<sub>2</sub> Saving Dispatch Model for Wholesale Electricity Market Concerning Emissions Trade

An Optimal CO<sub>2</sub> Saving Dispatch Model for Wholesale Electricity Market Concerning Emissions Trade