Multi-objective market clearing of joint energy and reserves auctions ensuring power system security

A model and solution approach to day-ahead market clearing of joint energy and reserves auctions is proposed in this paper. The model represents the clearing system used by ISO in charge of both the market operation and system security. A Multiobjective Mathematical Programming (MMP) formulation is implemented for provision of ancillary services (Automatic Generation Control or AGC, Spinning, Non-spinning and operational reserves) as well as energy in simultaneous auctions by pool-based aggregated market scheme. System security is taken into account in the market clearing procedure as the extra objective functions of the optimization problem. So, in the MMP formulation of the market clearing process, the objective functions (generation cost and security indices) are optimized while meeting AC power flow constraints, system reserve requirements and lost opportunity cost (LOC) considerations. The model is applied to the IEEE 24-bus Reliability Test System (IEEE 24-bus RTS), and simulation studies are carried out to examine the effectiveness of the proposed method.

[1]  K. Cheung,et al.  Energy and ancillary service dispatch for the interim ISO New England electricity market , 1999, Proceedings of the 21st International Conference on Power Industry Computer Applications. Connecting Utilities. PICA 99. To the Millennium and Beyond (Cat. No.99CH36351).

[2]  Mehdi Ehsan,et al.  A method for reserve clearing in disaggregated model considering lost opportunity cost , 2008 .

[3]  E. Litvinov,et al.  Energy and reserve market designs with explicit consideration to lost opportunity costs , 2002 .

[4]  Ross Baldick,et al.  Design of Efficient Generation Markets , 2005, Proceedings of the IEEE.

[5]  A. Papalexopoulos,et al.  Competitive procurement of ancillary services by an independent system operator , 1999 .

[6]  F. Gubina,et al.  Cost-based models for the power-reserve pricing of frequency control , 2004, IEEE Transactions on Power Systems.

[7]  Jared L. Cohon,et al.  Multiobjective programming and planning , 2004 .

[8]  K. Bhattacharya,et al.  Reactive Power as an Ancillary Service , 2001, IEEE Power Engineering Review.

[9]  François Bouffard,et al.  Scheduling and Pricing of Coupled Energy and Primary, Secondary, and Tertiary Reserves , 2005, Proceedings of the IEEE.

[10]  Mahmud Fotuhi-Firuzabad,et al.  Cost-benefit analysis and MILP for optimal reserve capacity determination in power system , 2008, Appl. Math. Comput..

[11]  K. Bhattacharya,et al.  Towards a Competitive Market for Reactive Power , 2002, IEEE Power Engineering Review.

[12]  A. Papalexopoulos,et al.  Pricing energy and ancillary services in integrated market systems by an optimal power flow , 2004, IEEE Transactions on Power Systems.

[13]  N. S. Rau,et al.  Optimal dispatch of a system based on offers and bids-a mixed integer LP formulation , 1999 .

[14]  M. Aganagic,et al.  Spot pricing of capacities for generation and transmission of reserve in an extended Poolco model , 1998 .

[15]  Mohammad Shahidehpour,et al.  The IEEE Reliability Test System-1996. A report prepared by the Reliability Test System Task Force of the Application of Probability Methods Subcommittee , 1999 .

[16]  Xingwang Ma,et al.  Energy and Reserve Dispatch In a Multi-zone Electricity Market , 1999 .

[17]  Y. Liu,et al.  A rational buyer's algorithm used for ancillary service procurement , 2000, 2000 IEEE Power Engineering Society Winter Meeting. Conference Proceedings (Cat. No.00CH37077).

[18]  Zuyi Li,et al.  Market Operations in Electric Power Systems : Forecasting, Scheduling, and Risk Management , 2002 .

[19]  F. Galiana,et al.  Demand-side reserve offers in joint energy/reserve electricity markets , 2003 .

[20]  J. Arroyo,et al.  Energy and reserve pricing in security and network-constrained electricity markets , 2005, IEEE Transactions on Power Systems.

[21]  R. Billinton,et al.  Reliability assessment of a restructured power system considering the reserve agreements , 2004, IEEE Transactions on Power Systems.

[22]  T. Alvey,et al.  A security-constrained bid-clearing system for the New Zealand wholesale electricity market , 1998 .