Adjustable Profile Blocks With Spatial Relations in the Day-Ahead Electricity Market

Abstract

The concept of adjustable combinatorial products within the scope of the day-ahead electricity market is introduced in this paper. These adjustable products comprise simple and linked profile block offers/bids, with a variable energy quantity profile during the block periods. In the proposed formulation, these blocks can be partially cleared, namely, the indivisibility of the classical profile blocks that are present in European markets is relaxed. This flexibility allows the elimination of paradoxically accepted and rejected blocks and, thus, the elimination of iterative heuristic procedures for their handling. Such modeling is not possible as a mixed-integer linear programming problem, due to the inherent indivisibility denoted by the use of binary variables. Additionally, advanced profile bids are formulated for demand entities, called “joint demand profile block bids” in this paper, which involve not only inter-temporal relations, but also spatial relations with each other. This two-dimensional relation between demand profile blocks is novel and is deemed feasible with the model presented here. These advanced profile orders are incorporated in a day-ahead market problem, formulating a mixed complementarity problem model, which is solved using commercial solvers. The model is validated using the IEEE RTS-96 system; nevertheless, its scalability to large real-world power systems is straightforward.