Abstract
The trading hubs construction problem for electricity markets under locational marginal prices is considered. Given historical prices for all nodes of the electricity grid and for all market participants over a sufficiently long period of time, the problem is to choose a required number of node clusters (hubs) and to assign market participants to hubs so as to minimize the deviation of hub prices from the prices of participants under certain constraints.In view of problem complexity, two evolutionary algorithms are proposed: a genetic algorithm and a hybrid local search heuristic. It is proved that the proposed genetic algorithm converges to optimum almost surely. The algorithms are tested and compared on the real-life data. The structure of the fitness landscapes is analyzed using multiple restarts of the local search and the behavior of the evolutionary algorithms is explained on the basis of this analysis.
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