Energy market and reserve market modeling in simultaneous and serial implementation methods with the aim of reducing electricity costs

Article history: Received 1 August 2011 Available online 10 August 2011 In competitive electricity markets, power needed for the network’s reserve is purchased from the ancillary service market. In this market, producing units and buyers alike announce their offers. As will be seen, energy market and reserve market implementation is possible with simultaneous method and serial method by choosing each of the methods based on the type of market and other conditions. In this paper, the energy market and the active power reserve market are simulated in two formations as serial and simultaneous for a uniform pricing system. In each method, limitations of transferring power over the lines, based on available transfer capacity (ATC), is considered alongside the other constraints in the energy market and the active power reserve market. Then, during network overload, economic dispatch is accomplished between winner units in the reserve market by using a linear optimization problem, and needed power is provided from these units at a minimal cost. Finally, our proposed methods are implemented on an IEEE 39-bus test system and results are analyzed. © 2012 Growing Science Ltd. All rights reserved

[1]  K. A. Papadogiannis,et al.  Optimal allocation of primary reserve services in energy markets , 2004, IEEE Transactions on Power Systems.

[2]  H. Haghighat,et al.  Gaming analysis in joint energy and spinning reserve markets , 2007, 2008 IEEE Power and Energy Society General Meeting - Conversion and Delivery of Electrical Energy in the 21st Century.

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

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

[5]  M. Madrigal,et al.  A security-constrained energy and spinning reserve markets clearing system using an interior-point method , 2000, 2000 Power Engineering Society Summer Meeting (Cat. No.00CH37134).

[6]  Antonio Simoes Costa,et al.  Energy and ancillary service dispatch through dynamic optimal power flow , 2003, 2003 IEEE Bologna Power Tech Conference Proceedings,.

[7]  Tongxin Zheng,et al.  Ex Post Pricing in the Co-Optimized Energy and Reserve Market , 2006, IEEE Transactions on Power Systems.

[8]  Farshid Keynia,et al.  A new spinning reserve requirement forecast method for deregulated electricity markets , 2010 .

[9]  E. Allen,et al.  Reserve markets for power systems reliability , 2000 .

[10]  E. Litvinov,et al.  Energy and Reserve Market Designs with Explicit Consideration to Lost Opportunity Costs , 2002, IEEE Power Engineering Review.

[11]  Tongxin Zheng,et al.  Ex post pricing in the co-optimized energy and reserve market , 2012, 2012 IEEE Power and Energy Society General Meeting.

[12]  S. M. Shahidehpour,et al.  A new approach for GenCos profit based unit commitment in day-ahead competitive electricity markets considering reserve uncertainty , 2007 .

[13]  J. Fuller,et al.  Pricing Energy and Reserves Using Stochastic Optimization in an Alternative Electricity Market , 2007, IEEE Transactions on Power Systems.

[14]  Seyed Hossein Hosseinian,et al.  Generation and reserve dispatch in a competitive market using constrained particle swarm optimization , 2010 .

[15]  Mahmud Fotuhi-Firuzabad,et al.  A proposed model for co-optimization of energy and reserve in competitive electricity markets , 2009 .

[16]  Christoph Weber,et al.  Pricing of reserves: Valuing system reserve capacity against spot prices in electricity markets☆ , 2008 .

[17]  Ricardo Raineri,et al.  From a bundled energy-capacity pricing model to an energy-capacity-ancillary services pricing model , 2008 .

[18]  F. Stacke,et al.  A Combined Pool/Bilateral/Reserve Electricity Market Operating Under Pay-as-Bid Pricing , 2008, IEEE Transactions on Power Systems.