European day-ahead electricity market clearing model

Chatzigiannis, Dimitris I.; Dourbois, Grigoris A.; Biskas, Pandelis N.; Bakirtzis, Anastasios G.

doi:10.1016/j.epsr.2016.06.019

Cited by 51 publications

(27 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The model incorporates an iterative procedure, aiming to mitigate the nonconvexity of electricity prices, as a result of the different EUPHEMIA order types and conditions, such as the "fill or kill" condition of block orders, complex orders, and Prezzo Unico Nazionale (PUN) orders. Also, Chatzigiannis et al [18] developed a European day-ahead electricity market clearing model, which explicitly incorporates all the different types of market orders, besides Merit and PUN orders, that are available in European power exchanges, as well as the transmission constraints, containing elements of both the Flow Based (FB) and Available Transfer Capacity (ATC) network representations. The model incorporates an iterative algorithm for the efficient handling of Paradoxically Accepted Orders (PAO) and complex Minimum Income Conditions (MIC).…”

Section: Introductionmentioning

confidence: 99%

Policy Implications of Power Exchanges on Operational Scheduling: Evaluating EUPHEMIA’s Market Products in Case of Greece

Koltsaklis

Dagoumas

2018

Energies

View full text Add to dashboard Cite

A vital component for the development of a functioning internal electricity market is the adoption by each European member state of the Pan-European Hybrid Electricity Market Integration (EUPHEMIA) for the day-ahead market solution. The consideration of the national power market’s characteristics enables more realistic market design towards the implementation of the so-called “Target Model”. This work considers a series of factors, including the EUPHEMIA order types, their use by market participants, the relative competitiveness of power generators, the impact of interconnected markets, the existence of market players with dominant positions, and the existence of specific regulations such as the minimum average variable cost restriction on offers by producers, as well as the strategy adopted by market participants. The main goal of this paper is to provide a comprehensive analysis on the adoption of EUPHEMIA’s algorithm in case of the Greek wholesale market, based on a relevant research project funded by the Joint Research Centre of the European Commission to support the Hellenic Regulatory Authority of Energy on its decision-making. The paper contributes to the relevant literature on the quantification of the impacts of the EUPHEMIA algorithm in the case of the Greek wholesale market, providing insights on the crucial aspects affecting realistic, market-based decision-making.

show abstract

Section: Introductionmentioning

confidence: 99%

Policy Implications of Power Exchanges on Operational Scheduling: Evaluating EUPHEMIA’s Market Products in Case of Greece

Koltsaklis

Dagoumas

2018

Energies

View full text Add to dashboard Cite

show abstract

“…This term, defined by equation 4 l / f t,− l,ms need to be null and vice-versa. This decomposition is required to correctly model the real energy losses on such interconnectors [34] and limit the upper and lower bounds of temporary variable f t l,ms . Therefore, c l for all interconnectors are set to 0.001.…”

Section: Objective Functionmentioning

confidence: 99%

“…The loss coefficient loss l , f t,+ l and f t,− l are added in (6) to take into account the losses in the DC interconnectors and decompose the power flow into importing and exporting. Constraints (7)-(9) combined with the penalty term (4) give f t,+ l and f t,− l as in [34].…”

Section: Balancing Equationsmentioning

confidence: 99%

Integrated European intra-day electricity market: Rules, modeling and analysis

2019

View full text Add to dashboard Cite

Currently, the coupling of the European Electricity Markets has been fully achieved for the Day-Ahead Market. In the same time, a joint integrated Intra-Day Market based on the Continuous Trading mechanism is under implementation and it involves countries from West of Europe. However, some countries (e.g. Italy and Iberian countries) use the Discrete Auction mechanism and their integration implies the harmonization of the two trading mechanisms. A Hybrid Mechanism that represents the coordination of Continuous Trading and Discrete Auction has been discussed with two concrete proposals being made by Italy and Iberian countries. Thus, the aim of this paper is to propose an advanced algorithm which can simulate the clearing of the integrated European Intra-Day Market with any levels of coordination between Discrete Auction and Continuous Trading. The proposed model is formulated as a Mixed Integer Linear Problem and incorporates all market rules of both mechanisms. The algorithm is flexible enough to adapt to future changes. In addition, a case study that considers the current and near future market participants and covers an entire day of an Intra-Day Market is run by an iterative process to investigate the impact of the hybrid Intra-Day Market model on the Iberian countries and Italy according to their proposals. Moreover, the test cases represent realistic data in terms of number of variables and constraints, and in terms of complexity of the bids. The results of the paper show that, on one hand, the proposed market clearing model can be applied for different levels of Continuous Trading and Discrete Auction coordination and, on the other hand, the integration into the single European Intra-Day Market of Italy and Iberian countries can be beneficial for them. Therefore, the general conclusion is that the proposed market clearing model can be successfully used by the Power Exchanges currently integrated to solve the market or by the Power Exchanges not yet integrated to evaluate the impact of their future integration. On the other hand, the model can easily cope with any further changes in the market rules and represents a tool for future research, e.g. analysis of market participants behavior in future scenarios or evaluation of various financial instruments to manage the congestion of intra-border interconnectors.

show abstract

“…In the literature, algorithms to solve the market clearing problem in the presence of block orders are based on different techniques. Reference [26] formulates a mixed-integer linear program (MILP) to clear the market with an additional iterative process to handle PRBs. Reference [27] proposes a primal-dual formulation of the market clearing problem, where an improved Benders-like decomposition method is further introduced to strengthen the classical Benders cuts, which is extended in [28].…”

Section: Literature Reviewmentioning

confidence: 99%

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

et al. 2018

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

European day-ahead electricity market clearing model

Cited by 51 publications

References 15 publications

Policy Implications of Power Exchanges on Operational Scheduling: Evaluating EUPHEMIA’s Market Products in Case of Greece

Policy Implications of Power Exchanges on Operational Scheduling: Evaluating EUPHEMIA’s Market Products in Case of Greece

Integrated European intra-day electricity market: Rules, modeling and analysis

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

Contact Info

Product

Resources

About