Extracting Appropriate Nodal Marginal Prices for All Types of Committed Reserve

Paria Akbary, Mohammad Ghiasi, Mohammad Reza Rezaie Pourkheranjani, Hamidreza Alipour and Noradin Ghadimi ()
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Paria Akbary: Chabahar Maritime University
Mohammad Ghiasi: Islamic Azad University
Mohammad Reza Rezaie Pourkheranjani: Fasa Branch, Islamic Azad University
Hamidreza Alipour: Rasht Branch, Islamic Azad University
Noradin Ghadimi: Islamic Azad University

Computational Economics, 2019, vol. 53, issue 1, No 1, 26 pages

Abstract: Abstract This paper proposes a framework to extract appropriate locational marginal prices for each type of reserve (up-/down-going reserves at both generation- and demand-sides). The proposed reserve pricing scheme accounts for the lost opportunity of selling the convertible products (energy and reserve). The fair prices can be obtained for capacity reserves applying this framework, since this framework assigns the same prices to the same services provided at the same location. The proposed reserve pricing scheme provides all the market participants with the appropriate signals to modify their offers according to the system operator requirements. The pricing problem is decomposed to different hourly sub-problems considering the bounding constraints. To show the effectiveness of the proposed algorithm, it is applied to the IEEE reliability test system and the results are discussed.

Keywords: Marginal pricing; Security constraint unit commitment (SCUC); Up-/down-going demand-/generation-side reserves (search for similar items in EconPapers)
Date: 2019
References: View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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DOI: 10.1007/s10614-017-9716-2

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