Economics at your fingertips  

Incorporating unit commitment aspects to the European electricity markets algorithm: An optimization model for the joint clearing of energy and reserve markets

Nikolaos E. Koltsaklis and Athanasios S. Dagoumas

Applied Energy, 2018, vol. 231, issue C, 235-258

Abstract: The European electricity markets’ integration aims at the market coupling among interconnected power systems and the enhancement of market competitive forces. This process is facilitated by the adoption of a common clearing algorithm among European power exchanges, entitled EUPHEMIA (Pan-European Hybrid Electricity Market Integration Algorithm), which however lacks to capture critical technical aspects of power systems, as done by the unit commitment problem including start-up and shut-down decisions, time constraints (minimum on- and off-times), as well as the consideration of ancillary services. This paper presents an optimization-based framework for the optimal joint energy and reserves market clearing algorithm, further utilizing the hourly offers module of the EUPHEMIA algorithm. In particular, through the formulation of a mixed integer linear programming (MILP) model and employing an iterative approach, it determines the optimal energy and reserves mix, the resulting market clearing prices, and it calculates the welfares of the market participants. The model incorporates intra-hourly power reserve constraints, as well as introduces new market products such as the option of forming linked groups of power units, aiming at supplying additional flexibility in the decision-making of the market participants. The model applicability has been assessed in the Greek power system and its interconnections with neighboring power systems in Southeast Europe. The proposed optimization framework can provide useful insights on the determination of the optimal generation and interconnection portfolios that address the new market-based operational challenges of contemporary power systems subject to technical and economic constraints.

Keywords: Power exchanges; EUPHEMIA model; Joint energy and reserve markets; Unit commitment; Minimum income condition; Electricity trading (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.elsevier. ... 405891/bibliographic

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-01-12
Handle: RePEc:eee:appene:v:231:y:2018:i:c:p:235-258