Minimizing supply cost in competitive energy market

Abstract

This paper discusses the problem of finding cost effective dispatch in competitive market structure. The proposed technique, Horizon Scan, has been applied to solve the problem. The proposed technique also employs some constraint equations for dealing with non-linear characteristics in the market. Horizon Scan has been implemented as an Object Oriented solver [1] that reads XML files. The object model is efficient for processing input data. The solver conforms with today's industrial practice in reading bid offers from market players in the current auction market setting. The data processing module has been programmed using JAVA. The performance of Horizon Scan has been benchmarked against several standard test cases [2], [3] and the results have been promising. The paper also presents several case studies depicting simplified model of the Australian energy market. The case studies comprise two and three region models with various linear and non linear constraints related to power generation, losses and transmission flow._ _

Co-optimizing Ancillary Raise and Lower Services

“…Work presented in this paper further develops the non-linear approach presented in [2], [3], [6], [7].…”

“…Ongoing investigation has revealed the differences in certain trials can be attributed to rounding off errors while others can due to multiple solutions occurring during the scanning phase. A complete step-by-step description and characteristics of Horizon Scan technique has been reported in [1], [3], [6].…”

“…In a regional model, the system is constrained by the region requirement and inter-regional flow limits and losses. Constraint equations for these have been documented in [3].…”

“…The NEM is the wholesale market for balancing supply against demand by facilitating the trade of electricity, which includes both energy and ancillary services. The definitions and description of market operation, including definitions of trading day, trading period, dispatch interval, construction supply bids, have been documented in [1]- [3].…”