Abstract
To increase market transparency, independent system operators (ISOs) have been working on minimizing uplift payments based on convex hull pricing theorems. Along this direction, in this paper, based on the analysis of specific generator features in the Midcontinent ISO (MISO) system, besides reviewing integral formulations for several special cases, we develop two integral formulations of a single generator that can capture these features. We then build a compact convex hull pricing formulation based on these integral formulations, which guarantees to obtain an exact convex hull price by solving a large-scale linear program. Meanwhile, to address the computational challenges caused by the large-scale MISO system, we propose innovative iterative algorithms with convergence properties, plus a complementary algorithm, to obtain an approximated convex hull price. The case studies on MISO instances with and without transmission constraints indicate that our algorithms lead to an exact convex hull price for all numerical studies and, the solutions can be obtained within 20 minutes.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.