Risk-based penalty price determination procedure for transmission constraint relaxations

Ahmed Salloum, Yousef M. Al-Abdullah, Kory Hedman, Vijay Vittal

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

1 Scopus citations

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 languageEnglish (US)
Title of host publication2016 International Conference on Probabilistic Methods Applied to Power Systems, PMAPS 2016 - Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781509019700
DOIs
Publication statusPublished - Dec 1 2016
Event2016 International Conference on Probabilistic Methods Applied to Power Systems, PMAPS 2016 - Beijing, China
Duration: Oct 16 2016Oct 20 2016

Other

Other2016 International Conference on Probabilistic Methods Applied to Power Systems, PMAPS 2016
CountryChina
CityBeijing
Period10/16/1610/20/16

    Fingerprint

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

Cite this

Salloum, A., Al-Abdullah, Y. M., Hedman, K., & Vittal, V. (2016). Risk-based penalty price determination procedure for transmission constraint relaxations. In 2016 International Conference on Probabilistic Methods Applied to Power Systems, PMAPS 2016 - Proceedings [7764204] Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/PMAPS.2016.7764204