Locational marginal pricing-based allocation of transmission capacity in multiple electricity markets

• Published in: IET generation, transmission & distribution Vol. 8; no. 5; pp. 983 - 994
• Main Authors: Karimi Varkani, Ali, Seifi, Hossein, Sheikh-El-Eslami, Mohammad Kazem
• Format: Journal Article
• Language: English
• Published: Stevenage The Institution of Engineering and Technology 01.05.2014; Institution of Engineering and Technology; The Institution of Engineering & Technology
• Subjects: Allocations; Applied sciences; central coordinator entity; Clearing; Congestion; congestion management issue; Disturbances. Regulation. Protection; Electrical engineering. Electrical power engineering; Electrical power engineering; Electricity; energy exchange; energy reserve; Europe; Exact sciences and technology; interconnection; Joining; load dispatching; locational marginal pricing‐based allocation; Management; Markets; markets energy dispatching; multiple electricity market; Operation. Load control. Reliability; power markets; Power networks and lines; power system interconnection; power system management; power transmission economics; pricing; Reserves; three‐area 15‐bus test system; transmission capacity; triple‐market case; Europe; multiple electricity market; Europe; interconnection; power system management; locational marginal pricing-based allocation; power transmission economics; transmission capacity; central coordinator entity; load dispatching; energy reserve; markets energy dispatching; power system interconnection; energy exchange; triple-market case; congestion management issue; power markets; pricing; three-area 15-bus test system; Performance evaluation; Channel capacity; Power system economics; Transmission capacity; Power system stability; Implementation; Bus system; Interconnection; Transportation network; Energy conversion; Pricing; Load management; Numerical simulation; Power markets; Economic aspect; Tariffication; Effectiveness factor; Energy transfer; Traffic congestion; Comparative study
• ISSN: 1751-8687; 1751-8695; 1751-8695
• DOI: 10.1049/iet-gtd.2013.0544

In recent years, there has been an increasing interest in energy exchange among the electricity markets. This subject, especially in Europe, has been identified as a market coupling. The issue of congestion management in multiple electricity markets or market coupling has been controversial and has resulted in some disputed subjects. The locational marginal pricing-based allocation of transmission capacity for congestion management and clearing of multiple electricity markets, in which market participants can place their bids simultaneously in different markets across an interconnection, is proposed. In this framework, the markets dispatch energy and reserve, independently. A central coordinator entity, then, runs economically the allocation of transmission capacity among the electricity markets. Three methods for simultaneous clearing of energy and reserve in the framework are also proposed. The possibility of implementation of the proposed methods in multiple markets is discussed. The numerical results for a three-area 15-bus test system in a triple-market case are presented to demonstrate the effectiveness of the proposed approach as compared with other approaches.