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Improvement of Auction and Settlemtnt Mechanisms for Co-optimization of Payments to Suppliers for Energy and Spinning Reserve

Nouri, Alireza | 2016

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  1. Type of Document: Ph.D. Dissertation
  2. Language: Farsi
  3. Document No: 48575 (05)
  4. University: Sharif University of Technology
  5. Department: Electrical Engineering
  6. Advisor(s): Hosseini, Hamid
  7. Abstract:
  8. In this dissertation, after analyzing the disadvantages of the offer cost minimization mechanism, it will be shown that it is necessary to find new auction mechanisms to be applied along with the fair, practical, and justifiable marginal pricing mechanism. Alternatively, the payment cost minimization mechanism has been proposed in the recent years. Different aspects of this mechanism have not been analyzed yet. There are many practical and economical considerations that yet need to be modeled in this mechanism and the problem formulation needs some improvements. As the first step, this mechanism will be compared with the traditionally offer cost minimization in a very simple market model. The main focus in this step is on sensitivity analysis of these two mechanisms, since these mechanisms have been compared in the literature from the other perspectives. After determining the relative advantage of payment cost minimization mechanisms, the weaknesses and insufficiencies of the available formulations for this mechanism will be analyzed. The difficulties with the available formulations will be solved through selecting a proper objective function and proposing a proper formulation for reserve marginal pricing to model the reserve problem along with the energy problem. This dissertation is then continued with proposing a tri-level optimization framework to model the system uncertainties in payment cost mechanism. Different techniques are used to convert this tri-level and nonlinear optimization to an equivalent single level and linear optimization. This optimization is then solved using a standard branch and cut solver. In the settlement step, the proposed formulation of payment cost minimization automatically determines the proper marginal prices in the supply side. In order to find the consumers’ payment a value-based approach is proposed in this dissertation which determines the share of each consumer in the payment of each service based on the real function of this service
  9. Keywords:
  10. Stochastic Programming ; Marginal Price ; Branch and Cut Algorithm ; Electricity Market ; Payment Cost Minimization (PCM) ; Multi-Level Optimization ; Reserve Market Settlement

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