European Electricity Market Integration With Mixed Market Designs—Part I: Formulation

Abstract

The integration of the day-ahead electricity markets in Europe shall lead to one multi-area market that will substitute the local/national ones. In view of the "target model" that will be enforced in all European markets in conjunction with their forthcoming coupling/integration, a centralized market splitting algorithm is implemented in this paper, respecting the standard market regulatory framework of power exchanges (PXs) and power pools, including 1) block offers/bids, linked block offers/bids, flexible hourly offers/bids and convertible block offers in power exchanges and 2) unit technical/commitment constraints and system operating constraints in power pools. The problem is formulated as a mixed integer linear programming (MILP) model, which can be solved using commercial MILP solvers. The performance and computational requirements of an implementation in pan-European level is presented in the companion paper; the model is tested in terms of problem solvability to its limits, considering a day-ahead market clearing time threshold equal to one hour.Index Terms-Internal electricity market, market splitting, mixed integer linear programming, power exchange, power pool.

Optimal DR and ESS Scheduling for Distribution Losses Payments Minimization Under Electricity Price Uncertainty

“…The day ahead market mechanism is followed in many countries such as Ireland, Greece and Poland [21]. In this framework, the electricity prices are set based on market clearing mechanism one day in advance of actual operating point.…”

Price-based unit commitment electricity storage arbitrage with piecewise linear price-effects

“…Besides these hourly orders, most exchanges also allow other, more complex, orders [46]. The most common one is a block order, which consists of quantities that are offered or requested in multiple hours at an average price limit and which has to be accepted completely or not at all.…”

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“…This reduced grid representation, where internal network is treated as a copper plate, may result into infeasible real-time power flows due to transmission congestion. Nevertheless, recent literature [2], [3] proposes alternative approaches to account also for the intra-zonal network feasibility, based on a centralized market-splitting algorithm that integrates diverse market designs, i.e., power pools or power exchanges.…”