Optimal generator bidding strategies for power and ancillary services using game theory

Optimal Active-Reactive Power Dispatch Under Competition via Bilevel Programming

“…Thus, for a generator operating strictly within its active power limits: (24) Equation (24) shows that is the marginal profit of generator . As such, it cannot be adopted to define financial compensation for active power provision.…”

“…More recently, such proposals have taken into consideration the local characteristics of the reactive support [17], system security [18]- [20], and, in case of reserves, reliability [21]. Works were also published with analysis of generator market power and strategic behavior in reactive power markets [20], [22]- [24]. Different optimization models have been proposed to represent the problem of optimally dispatching reactive power under competition, some of them being straightforward extensions of the OPF problem [8], [10], [13], while others include different representations of generator opportunity costs and also costs associated with reactive power provided by network equipment [11], [14], [17], [25].…”

Joint energy and reserve markets: Current implementations and modeling trends

“…For simplicity, the majority of works deal with a unique reserve product. Some authors do not explicit the type of reserve considered (see [41][42][43][44][45][46][47][48][49]), whereas others refer to spinning reserve (see [14,[37][38][39][50][51][52][53][54][55][56][57][58][59][60][61][62][63]).…”

“…In [49,62], an additional cost is incurred in the objective function so as to explicitly contemplate the energy opportunity cost of providing reserves. In sequential dispatches, the absence of this cost would lead to neglect the interaction between markets, whereas in joint dispatches, this opportunity cost is implicitly taken into account and does not require a term in the objective function.…”

“…For single-node markets, the system is typically assumed as a single-bus (see [34,37,42,44,46,49,51,53,55,62,66,67,70,71,73,74]) in which transmission losses are neglected. In nodal systems, a first approach is to simplify the grid as if they were pipelines, neglecting the electric characteristics of the lines (see [36,38,48,56]).…”