Sharif Digital Repository

This paper finds near equilibrium prices for electricity markets with non-convexities due to binary variables, in order to reduce the market participants’ opportunity costs, such as generators’ unrecovered costs. The opportunity cost is defined as the difference between the profit when the instructions of the market operator are followed and when the market participants can freely make their own decisions based on the market prices. We use the minimum complementarity approximation to the minimum total opportunity cost model, from previous research, with tests on a much more realistic unit commitment model than in previous research, including features such as reserve requirements, ramping...