Fast Market Splitting Matching Method for Spot Electric Power Market

We have developed a fast, innovative matching method for the spot power market, considering network constraints. In this method, buy and sell order bids are respectively divided into the aggregated volume of several band prices. Then the aggregated volume and the center of each band price are used to calculate a band clearing price, which contains the real clearing price. The dividing and calculating process is iterated until the band price is less than the tick size of the bidding price. We applied this method to a real problem in the Japanese power market with 9 areas, 10 area-connecting lines, and 9000 orders (volume/price pairs). Our simulation results show that the new method is ten times faster than conventional linear programming. This demonstrates the effectiveness of the developed method.