Optimal Computation of Network Indicators for Electricity Market Bidding Zones Configuration Considering Explicit N-1 Security Constraints

Cristian Bovo, Valentin Ilea, Enrico Maria Carlini, Mauro Caprabianca, Federico Quaglia, Luca Luzi and Giuseppina Nuzzo
Additional contact information
Cristian Bovo: Dipartimento di Ingegneria Industriale e dell’Informazione, ENSIEL-Università di Pavia, 27100 Pavia, Italy
Valentin Ilea: Dipartimento di Energia, ENSIEL-Politecnico di Milano, 20156 Milano, Italy
Enrico Maria Carlini: Terna Rete Italia SpA Dispacciamento e Conduzione, 00144 Roma, Italy
Mauro Caprabianca: Terna Rete Italia SpA Dispacciamento e Conduzione, 00144 Roma, Italy
Federico Quaglia: Terna Rete Italia SpA Dispacciamento e Conduzione, 00144 Roma, Italy
Luca Luzi: Terna Rete Italia SpA Dispacciamento e Conduzione, 00144 Roma, Italy
Giuseppina Nuzzo: Terna Rete Italia SpA Dispacciamento e Conduzione, 00144 Roma, Italy

Energies, 2021, vol. 14, issue 14, 1-31

Abstract: In this paper an optimization problem designed to calculate electric grid specific indicators to be used within model-based methodologies for the definition of alternative electricity market bidding zone configurations is designed. The approach integrates within the framework of a bidding zone review process aligned to the specifications of the Commission Regulation (EU) 2015/1222 (CACM) and Regulation (EU) 2019/943 of the European Parliament and of the Council (CEP). The calculated solution of the optimization provides locational marginal prices and allows to determine, outside the optimization problem, the power transfer distribution factors for critical elements. Both indicators can be used as inputs by specially designed clustering algorithms to identify model-based electricity market bidding zone configurations, as alternative to the current experience-based configurations. The novelty of the optimization problem studied in this paper consists in integrating the N-1 security criteria for transmission network operation in an explicit manner, rather than in a simplified and inaccurate manner, as encountered in the literature. The optimization problem is evaluated on a set of historical and significant operating scenarios of the Italian transmission network, carefully selected by the Italian transmission system operator. The results show the optimization problem capability to produce insightful results for supporting a bidding zone review process and its advantages with respect to simplified methodologies encountered in the literature.

Keywords: electricity markets; bidding zones; market models; network indicators; security constrained optimal power flow (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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