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.
Highlights
The European electricity market is on a straight road towards a liberalized and integrated European market: full integration of the day-ahead European market has already been implemented [1] while clear roadmaps are defined for the integration of the intraday [2] and balancing markets [3]
To evaluate the impact the proposed model has on the network operation and indicators for bidding zones configuration, simulations were performed in three scenarios: (i)
N1cor—where the N-1 corrective security criterion is adopted and the full optimization model is deployed; (ii) N1prev—where the N-1 preventive security criterion is adopted; (iii) N70—where no explicit N-1 security criterion is considered but the most common strategy adopted in the literature related to alternative bidding zone configuration definition [17,18,19] is employed: only N security criterion is adopted and the maximum limit on the transmission branches power flow is lowered to 70% of the thermal limit, which is the most conservative value encountered
Summary
The European electricity market is on a straight road towards a liberalized and integrated European market: full integration of the day-ahead European market has already been implemented [1] while clear roadmaps are defined for the integration of the intraday [2] and balancing markets [3]. In general, the literature review identifies the use of DC power flow (DC PF) models to represent the grid, and the adoption of only the N security criterion, i.e., network elements outages are not explicitly considered when network indicators are calculated for the identification of alternative bidding zone configurations. The current work further develops the model by maturing (i) the identification procedure of critical contingencies, (ii) the solution for the management of the double line trips and (iii) the calculation of network indicators, including the PTDFs. the main contribution of the paper consists in extending the numerical analysis of the results: the entire range of considered snapshots (cases) and simulation scenarios (including comparison with the commonly encountered approach in literature when it comes to the calculation of network indicators for bidding zone configuration) is analyzed and the advantages of proposed approach are emphasized. By paper [30] that considers only the LMPs, and by paper [31] which considers the PTDFs
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