TY - GEN
T1 - Pricing Implications of Transmission Security Modeling in Electric Energy Markets
AU - Saleh, Mehdi
AU - Saikumar, Karthik
AU - Hedman, Kory W.
PY - 2019/10
Y1 - 2019/10
N2 - This paper discusses the pricing implications of modeling transmission security constraints in market clearing models. Most market operators include transmission security constraints in optimization models that are used to determine the commitment and dispatch schedules for both the day ahead and the real time markets. The inclusion of transmission security constraints leads to the rise of a post transmission contingency congestion component in the nodal market clearing prices. Most contemporary market models follow an approach that does not allow for a re-dispatch in generation after the occurrence of a transmission contingency, attempting to arrive at a single market solution that is transmission feasible for both the base case and all modeled post-contingency network models. A theoretical analysis of the pricing implications of transmission security modeling in energy market clearing models (including a model allowing for re-dispatch) is presented by leveraging duality theory.
AB - This paper discusses the pricing implications of modeling transmission security constraints in market clearing models. Most market operators include transmission security constraints in optimization models that are used to determine the commitment and dispatch schedules for both the day ahead and the real time markets. The inclusion of transmission security constraints leads to the rise of a post transmission contingency congestion component in the nodal market clearing prices. Most contemporary market models follow an approach that does not allow for a re-dispatch in generation after the occurrence of a transmission contingency, attempting to arrive at a single market solution that is transmission feasible for both the base case and all modeled post-contingency network models. A theoretical analysis of the pricing implications of transmission security modeling in energy market clearing models (including a model allowing for re-dispatch) is presented by leveraging duality theory.
KW - Lagrangian dual
KW - load payment
KW - locational marginal prices
KW - market clearing prices
KW - security constrained economic dispatch
KW - security constraints
KW - transmission contingency
UR - http://www.scopus.com/inward/record.url?scp=85080960636&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85080960636&partnerID=8YFLogxK
U2 - 10.1109/NAPS46351.2019.9000210
DO - 10.1109/NAPS46351.2019.9000210
M3 - Conference contribution
T3 - 51st North American Power Symposium, NAPS 2019
BT - 51st North American Power Symposium, NAPS 2019
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 51st North American Power Symposium, NAPS 2019
Y2 - 13 October 2019 through 15 October 2019
ER -