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Payment minimisation auction with security constraints
253 viewed

Payment minimisation auction with security constraints

Nouri, A

Payment minimisation auction with security constraints

Nouri, A ; Sharif University of Technology | 2017

253 Viewed
  1. Type of Document: Article
  2. DOI: 10.1049/iet-gtd.2016.0537
  3. Publisher: Institution of Engineering and Technology , 2017
  4. Abstract:
  5. Among the different options available for market clearing mechanisms, offer cost minimisation mechanism is being used in most electric power markets. The payments are then calculated based on locational marginal prices (LMPs). The payments can be significantly higher due to the inconsistency of the clearing and pricing mechanisms. Payment cost minimisation (PCM) mechanism which directly minimises the total payment has been recently proposed to solve this issue. In this study, an auction mechanism is proposed for payment to suppliers minimisation (PSM) based on the LMPs instead of consumers payment minimisation (CPM). Using a proper formulation for the supply side reserve LMPs, the complete reserve problem is included in the proposed joint energy and multi-type reserve PSM auction. The formulation is linearised and solved using a standard branch and cut solver. Since the justifiable reserve marginal prices cannot be found at demand side, as will be discussed, and due to the many advantages of PSM mechanism over CPM mechanism, the objective function is fully calculated at the supply side. This causes some difficulties in the linearisation of the formulation which are solved using proper linearisation techniques. Different case studies are conducted and the results of different mechanisms are compared. © 2017 The Institution of Engineering and Technology
  6. Keywords:
  7. Commerce ; Integer programming ; Auction mechanisms ; Different mechanisms ; Electric power markets ; Locational marginal prices ; Market clearing mechanisms ; Objective functions ; Pricing mechanism ; Security constraint ; Costs
  8. Source: IET Generation, Transmission and Distribution ; Volume 11, Issue 6 , 2017 , Pages 1370-1380 ; 17518687 (ISSN)
  9. URL: https://ieeexplore.ieee.org/document/7933102