Abstract
The electric power system is one of the most complex engineered systems. It is, thus, a challenge to design a market that is efficient, transparent, and provides the proper incentives to market participants. Existing market models employ constraint relaxations, which enable various constraints to be relaxed (violated) for a high penalty price. This paper examines the practice of allowing transmission assets to be overloaded in market models. While most overloads are corrected by dispatch operators before the actual operational state, some overloads are realized. Existing constraint relaxation practices specify the same penalty price regardless as to the line's voltage, anticipated current flow, probability of a contingency, or overall impact on operational security. This paper proposes a straightforward way to modify existing practices to assign higher penalty prices to lines that receive a higher risk index. The approach is tested on a real-world, large-scale system, the PJM Interconnection.
Original language | English (US) |
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Title of host publication | 2016 International Conference on Probabilistic Methods Applied to Power Systems, PMAPS 2016 - Proceedings |
Publisher | Institute of Electrical and Electronics Engineers Inc. |
ISBN (Electronic) | 9781509019700 |
DOIs | |
State | Published - Dec 1 2016 |
Event | 2016 International Conference on Probabilistic Methods Applied to Power Systems, PMAPS 2016 - Beijing, China Duration: Oct 16 2016 → Oct 20 2016 |
Other
Other | 2016 International Conference on Probabilistic Methods Applied to Power Systems, PMAPS 2016 |
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Country/Territory | China |
City | Beijing |
Period | 10/16/16 → 10/20/16 |
Keywords
- Electric energy markets
- power generation economics
- power system economics
- power system operations
- power system reliability
- power system security
ASJC Scopus subject areas
- Statistics, Probability and Uncertainty
- Energy Engineering and Power Technology
- Renewable Energy, Sustainability and the Environment
- Statistics and Probability