Demand shifting bids in energy auction with non-convexities and transmission constraints

Izabela Żółtowska


The major objective of this paper was to propose clearing and pricing models suitable for demand shifting bids in the efficient, but non-convex pool-based auction. Complex generators' offers bring non-convexities into the efficient auctions due to e.g. start-up costs and times. This paper focused on the responsive demands, introducing simple, yet adequate linear constraints into a multi-period bid/offer-based optimal power flow (OPF DC) model. As the standard locational marginal prices (LMPs) may not support the auction outcomes due to non-convexities, uplifts are needed to reduce generators' loss. Previous work has developed a minimum-uplift pricing model that directly optimizes prices, so that uplifts arising from generators' profit-suboptimality and simple, elastic demands' benefit-suboptimality are minimized. This work extended the mixed integer linear programming (MILP) formulation of the previous model to incorporate new linear constraints defining benefit-suboptimality of demand shifting bids. Furthermore, the transmission constrained market was attempted. As a result, the buyers were protected against over-curtailment; moreover, prices complemented with minimum uplifts were fair for both generators and demands. The models were validated on the literature-based cases, including IEEE RTS 24-node 24-hour system.
Author Izabela Żółtowska IAiIS
Izabela Żółtowska,,
- The Institute of Control and Computation Engineering
Journal seriesEnergy Economics, ISSN 0140-9883
Issue year2016
Publication size in sheets0.5
Keywords in EnglishDouble auction; Unit commitment; Energy pricing; Minimum uplift; Individual maximum profits
projectDevelopment of incentive compatible models and mechanisms in multi-agent systems. Project leader: Toczyłowski Eugeniusz, , Phone: 7950, start date 02-04-2010, end date 01-04-2013, 505/G/1031/0032, Completed
WEiTI Projekty finansowane przez MNiSW
Languageen angielski
Zoltowska Demand shifting bids 2016.pdf 1.1 MB
Score (nominal)45
ScoreMinisterial score [Punktacja MNiSW] = 40.0, 27-03-2017, ArticleFromJournal
Ministerial score (2013-2016) [Punktacja MNiSW (2013-2016)] = 45.0, 27-03-2017, ArticleFromJournal
Publication indicators WoS Impact Factor [Impact Factor WoS]: 2016 = 3.199 (2) - 2016=4.41 (5)
Citation count*0 (2016-09-19)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.