Pricing Implications of Transmission Security Modeling in Electric Energy Markets

Mehdi Saleh, Karthik Saikumar, Kory W. Hedman

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations

Abstract

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.

Original languageEnglish (US)
Title of host publication51st North American Power Symposium, NAPS 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781728104072
DOIs
StatePublished - Oct 2019
Event51st North American Power Symposium, NAPS 2019 - Wichita, United States
Duration: Oct 13 2019Oct 15 2019

Publication series

Name51st North American Power Symposium, NAPS 2019

Conference

Conference51st North American Power Symposium, NAPS 2019
Country/TerritoryUnited States
CityWichita
Period10/13/1910/15/19

Keywords

  • Lagrangian dual
  • load payment
  • locational marginal prices
  • market clearing prices
  • security constrained economic dispatch
  • security constraints
  • transmission contingency

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Hardware and Architecture
  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering
  • Safety, Risk, Reliability and Quality

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