Incorporating power system security into market‐clearing of day‐ahead joint energy and reserves auctions

Abstract

AbstractThis paper is intended to introduce a technique for incorporating system security into the clearing of day‐ahead joint electricity markets, with particular emphasis on the voltage stability. A Multiobjective Mathematical Programming (MMP) formulation is implemented for provision of ancillary services (Automatic Generation Control or AGC, spinning, non‐spinning, and operating reserves) as well as energy in simultaneous auctions by pool‐based aggregated market scheme. In the proposed market‐clearing structure, the security problem, as an important responsibility of ISO, is addressed and a nonlinear model is formulated and used as the extra objective functions of the optimization problem. Thus, in the MMP formulation of the market‐clearing process, the objective functions (including augmented generation offer cost, overload index, voltage drop index, and loading margin) are optimized while meeting AC power flow constraints, system reserve requirements, and lost opportunity cost (LOC) considerations. The IEEE 24‐bus Reliability Test System (RTS 24‐bus) is used to demonstrate the performance of the proposed method. Copyright © 2008 John Wiley & Sons, Ltd.