Market Settlement Research Articles

Market Clearing and Settlement Using Participant Based Distributed Slack Optimal Power Flow Model for a Double Sided Electricity Auction Market –Part I

AC and DC OPF models are widely used in the industry for market clearing and settlement of primary electricity market. Research works available in literature have used locational marginal price to price electricity. But this research work by using Participant Based Distributed Slack Power Flow and a unique delivery/withdrawal point for energy called “Market Center” provides a new framework for pricing the electricity. Using the Participant Based Distributed Slack Power Flow Model a Participant based Distributed Slack Non Linear Optimal Power Flow model for market clearing and settlement of primary transaction in a double sided electricity auction market is proposed in Part 1 of this paper. Part II of this paper proposes an equivalent lumped linear model for faster convergence. The optimal solution gives the optimal schedules of the individual participants. The formulae to decompose the amount payable to GENCO participant and marginal price to be received from the DISCO participant into its components are also derived which is different from all available techniques in literature which calculate bus wise nodal prices. The proposed model is tested on Radial Five bus system and PJM system for market clearing and settlement of primary electricity market.

Performance-Based Settlement of Frequency Regulation for Electric Vehicle Aggregators

Vehicle-to-grid (V2G) aggregators may have an uncertain capacity submission problem due to random behaviors of pertaining EVs. From the market perspective, we investigate whether the market settlement rules are appropriate enough to induce V2G aggregators to submit an accurate capacity rather than an exaggerated over-capacity. We first review the frequency regulation settlement rules of most representative ISOs in North America such as PJM, MISO, CAISO, and NYISO and several European TSOs. Based on the settlement rules, we analyze how the uncertain submission of V2G aggregators affects the settlements in terms of mileage and accuracy, and perform simulations to evaluate the effect of the exaggerated over-capacity submission on mileage, accuracy, and reward. Through simulations, we show that the conventional frequency regulation settlements fail to induce V2G aggregators to estimate accurate achievable power capacity. To solve this problem, we propose to enhance the accuracy of performance in settlement. We deal with the effect of delay and stochastic properties on payments.

Deliverable Robust Ramping Products in Real-Time Markets

The increasing penetration of variable energy resources has led to more uncertainties in power systems. Flexible Ramping Products (FRP) have been adopted by several electricity markets to manage the uncertainties. We reveal that neglected line congestion for FRP may not only cause infeasibility, but also result in a failure of cost recovery. To address the deliverability issues on FRP, this paper proposes a new concept, Deliverable Robust Ramping Products (DRRP), in real-time markets. The DRRP includes generation ramping reserve and generation capacity reserve. The DRRP is deliverable and immunized against any predefined uncertainty. It also fully addresses the bid cost recovery issue caused by the line congestion in existing FRPs. The prices of DRRP are derived within the Affine Adjustable Robust Optimization (AARO) framework. These prices can be used to identify valuable reserves among available reserves and quantify the values of flexible resources that provide reserves. This paper also proposes a general approach to obtaining the time-decoupled prices for DRRP and generation, which can be used for the market settlement of the first interval only in real-time markets. Simulations on a 3-bus system and the IEEE 118-bus system are performed to illustrate the concept of DRRP and the advantages of DRRP compared to existing FRP.

Offline penalty price determination method for transmission thermal constraint relaxations

This paper proposes an offline penalty price determination process for transmission thermal constraint relaxations. System operators utilize various market models, which are highly complex due to operating requirements as well as physical restrictions of assets, to manage electric energy markets while ensuring a reliable supply of electric power. System operators enable constraint relaxations in market models by allowing certain constraints to be relaxed for penalty prices. Constraint relaxation practices help system operators to cope with model infeasibility, obtain possible gains in market surplus, and cap shadow prices. A proper selection of penalty prices is imperative due to the influence that penalty prices have on generation scheduling and market settlement; however, current industry practices do not consider the true cost of the relaxations. This work introduces a systematic methodology to capture the cost of relaxations considering probabilistic weather conditions and associated conductor degradation risk. The numerical analysis evaluates the effectiveness of the proposed method on an electric energy market; the results show that exercising transmission thermal constraint relaxations with a proper selection of penalty prices can provide net benefits to market participants.

Potential Arbitrage Revenue of Energy Storage Systems in PJM

The volatility of electricity prices is attracting interest in the opportunity of providing net revenue by energy arbitrage. We analyzed the potential revenue of a generic Energy Storage System (ESS) in 7395 different locations within the electricity markets of Pennsylvania-New Jersey-Maryland interconnection (PJM), the largest U.S. regional transmission organization, using hourly locational marginal prices over the seven-year period 2008–2014. Assuming a price-taking ESS with perfect foresight in the real-time market, we optimized the charge-discharge profile to determine the maximum potential revenue for a 1 MW system as a function of energy/power ratio, or rated discharge duration, from 1 to 14 h, including a limited analysis of sensitivity to round-trip efficiency. We determined minimum potential revenue with a similar analysis of the day-ahead market. We presented the distribution over the set of nodes and years of price, price volatility, and maximum potential arbitrage revenue. From these results, we determined the breakeven overnight installed cost of an ESS below which arbitrage would be profitable, its dependence on rated discharge duration, its distribution over grid nodes, and its variation over the years. We showed that dispatch into real-time markets based on day-ahead market settlement prices is a simple, feasible method that raises the lower bound on the achievable arbitrage revenue.

テレビ受像機の普及期における「嵯峨」の誕生とシリーズ展開 : 家具調テレビに関する研究(1)

テレビ受像機の普及期における「嵯峨」の誕生とシリーズ展開 : 家具調テレビに関する研究(1)

Installation of UPFC for enhancing overall performance of electrical power system

Stability of any power system is a major issue for secure operation of the system. The stability of power system is concerned with the behavior of synchronous generators following disturbances. Transmission system in competitive market refers to over loading of transmission lines or transformers due to market settlement. Thus there is a need of enhancing transmission capability of the network. FACTS controllers have the capability of controlling power flow by means of controlling line parameters, voltage injection at some of the angle. In the proposed work optimal location for installation of FACTS device is obtained using NN and the amount of voltage and angle to be injected in the system using UPFC is calculated using Bees algorithm. The method is tested on IEEE 26 bus system but it is general in nature and can be applied to any power system. The results exhibit the performance of the method in maintaining the system stability and АТС enhancement.

The decline of ‘advantageous disadvantage’ in gateway suburbs in Australia: The challenge of private housing market settlement for newly arrived migrants

The spatial concentration of recently arrived immigrants in gateway cities and suburbs is usually seen as undesirable by urban academics and policy makers. This paper presents a counter-argument that the concentration of disadvantaged new immigrants in the form of humanitarian refugees and their families can, and does, result in positive outcomes for those groups. In part, our argument is based on making a distinction between people-based disadvantage and place-based disadvantage. The paper examines the changing nature of place-based ‘advantage’ for immigrants in Australian gateway cities through a focus on two metropolitan locations, Auburn (Sydney) and Springvale (Melbourne), known as popular destination suburbs for recent immigrants. While these two cases validate the benefits of such gateway suburbs, they also demonstrate that the capacity of recent migrants to emulate concentrated settlement patterns is now significantly undermined by changes in the labour market and affordability problems in the housing market. The paper concludes with a discussion on the possible future of gateway suburbs and the implications of this shift for the wellbeing of particular groups of disadvantaged residents.

Mitigating Congestion in a Power System and Role of FACTS Devices

Congestion management refers to avoiding or relieving congestion. In transmission lines, congestion management is one of the most important issues for the reliable operation of power system in the deregulated environment. Restructuring has brought considerable changes in all possible domains including electric supply industry. By virtue of restructuring, electricity has now become a commodity and has converted into a deregulated one. The traditional regulated power system has now become a competitive power market. In the present scenario, the real time transmission congestion is the operating condition in which the transfer capability to implement all the traded transactions simultaneously is not enough due to either some expected contingencies or market settlement. Thus, congestion is associated with one or more violations of the physical, operational, and policy constraints under which grids operate. Thus, congestion management is about managing the power transmission and distribution among valuable consumers priority-wise. Placement of FACTS (Flexible Alternating Current Transmission System) devices for generation rescheduling and load-shedding play a crucial role in congestion management. FACTS devices are used to enhance the maximum load ability of the transmission system. FACTS increases the flexibility of power system, makes it more controllable, and allows utilization of existing network closer to its thermal loading capacity without jeopardizing the stability. FACTS technology can boost the transfer capability in stability limited systems by 20–30%. As a result, more power can reach consumers with a shorter project implementation time and a lower investment cost. This review work unites the various publications on congestion management in past few decades.

A Hierarchical Electricity Market Structure for the Smart Grid Paradigm

This paper proposed a hierarchical structure for the electricity market to facilitate the coordination of energy markets in distribution and transmission networks. The proposed market structure enables the integration of microgrids, which provide energy and ancillary services in distribution networks. In the proposed hierarchical structure, microgrids participate in the energy market at the distribution networks settled by the distribution network operator (DNO), and load aggregators (LAs) interact with microgrids and generation companies (GENCOs) to import/export energy to/from the distribution network electricity markets from/to the wholesale electricity market. The proposed approach addressed the synergy of energy markets by introducing dynamic game with complete information for GENCOs, microgrids, and LAs. The proposed hierarchical competition is composed of bi-level optimization problems in which the respective upper-level problems maximize the individual market participants’ payoff, and the lower-level problems represent the market settlement accomplished by the DNO or the independent system operator. The bi-level problems are solved by developing sensitivity functions for market participants’ payoff with respect to their bidding strategies. A case study is employed to illustrate the effectiveness of the proposed approach.

Value‐based reserve market settlement

The main focus of this study is on reserve market settlement in an electricity market with marginal pricing scheme as the pricing mechanism. Following a day-ahead market clearing, the marginal prices are found using the appropriate Lagrange multipliers as the bi-products of the optimisation process. The payments to energy and reserve providers can then be found based on these prices. However, it is hard to find an appropriate settlement scheme that provides the fair and justifiable consumer payments based on marginal pricing scheme considering the actual reserve functions in power systems. In this study, a reserve marginal pricing that is based on a proper reserve marginal price definition and considers the free market requirements and accounts for the lost opportunity of selling the convertible products is proposed. Also, a value-based reserve market settlement scheme is proposed in this study that is justifiable for customers and best suits the actual reserve functions in the system. In the proposed settlement scheme, the reserves are eliminated one after the other and the loss of load (LL) and generation is then calculated for market participants in different contingencies via a novel optimal power flow that finds the fair and optimal LLs and generations. The reserve market is then settled based on the LLs and generations in different contingencies. The proposed reserve pricing and settlement schemes are tested on a 3-bus system, a 6-bus system, and the 24-bus reliability test system to show the effectiveness of the proposed method.

Techno-economical benefits of optimal location of SVC for congestion management

This research paper deals with the congestion of transmission lines in deregulated electricity market and thus, suggesting an optimal power flow framework to solve the problem. In this research paper, a model has been designed that help decongest using re-dispatch method and then calculate the taxes. In order to reduce taxes, it considers the installation of flexible AC transmission systems (FACTS) devices in the transmission network. The optimal location of FACTS devices can be recognised by the bus on which maximum tax is imposed. The IEEE 30-bus system is used to simulate the market and illustrate the proposed method. The simulation is done in MATLAB. The results show that when SVC is included, the amount of re-dispatched power reduces significantly, resulting in an optimal operating point closer to that dictated by the market settlement. Secondly, the results prove that SVC is a viable option for congestion management, from technical as well as economical points of view.

A New Framework for Day-Ahead Electricity Market Based on Information Transparency Before Market Settlement

This paper studies the impact of information transparency on power market; the importance and the advantages of the information transparency in power markets are described. Market price before market settlement is considered as released information and a new mechanism for observable day-ahead market is proposed. In this mechanism, participants’ bidding and the market clearing model are performed in an iterative procedure which consists of a number of market rounds. The round with the most social welfare is proposed as the market settlement round. GENCOs bid using market price forecasting method. To take into account the released information, a decision-making method is presented. A six-bus test system is employed to illustrate the proposed method. The numerical results show the impact of information transparency on the market indexes. As a result, it is found that higher information transparency leads to a decreased market price and it can improve market efficiency and stability.

A HYBRID APPROACH FOR IPFC LOCATION AND PARAMETERS OPTIMIZATION FOR CONGESTION RELIEF IN COMPETITIVE ELECTRICITY MARKET ENVIRONMENT

The deregulated power system operation with competitive electricity market environment has been created many challenging tasks to the system operator. The competition with strategic bidding has been resulted for randomness in generation schedule, load withdrawal and power flows across the network. The economic efficiency of electricity market is mainly dependent on network support. In the event of congestion, it is required to alter the base case market settlement and hence the economic inefficiency in terms of congestion cost can occur. In order to anticipate congestion and its consequences in operation, this paper has been considered Interline Power Flow Controller (IPFC).This article proposed a tactical approach for optimal location and then its parameters in Decoupled Power Injection Modeling (DPIM) are optimized using Gravitational Search Algorithm (GSA). The case studies are performed on IEEE 30-bus test system and the results obtained are validating the proposed approach for practical implementations.

Impact of UPFC on Competitive Electricity Market Settlement in Deregulated Power System

The operation and security management of deregulated power system with competitive electricity market environment is a typical task to the system operator due to its complexity under uncertainties. In order to enhance security level, unified power flow controller (UPFC) is proposed in this work. Under stressed conditions, the increment in market economic inefficiency is optimized with UPFC device support. The UPFC location and its parameters are controlled to minimize the total generation cost. The case studies are performed on IEEE 14-bus test system and the results validating the proposed approach for social welfare maximization in real time.

Expiration-Day Effects of Equity Derivatives in India: An Opinion Survey

The present study focuses upon the impact of derivatives trading on underlying stock market behaviour at and around expiration-days of these contracts. Expiration-day effects may arise from a variety of reasons such as unwinding of arbitrage positions, activities of speculators and manipulators, and market settlement procedure. The study is using primary data collected through opinion survey of stock brokers for finding causes for abnormal behaviour of underlying stock market at expiration-day of derivatives contracts and to get an insight into probable measures to deal with undesirable expiration-day effects, if any. The results of the study indicated expiration-days of derivative contracts are not catastrophic in Indian stock market and thus, no alteration in existing regulations of stock market seems desirable.

Optimization models for an EV aggregator selling secondary reserve in the electricity market

Power system regulators and operators are creating conditions for encouraging the participation of the demand-side into reserve markets. The electric vehicle (EV), when aggregated by a market agent, holds sufficient flexibility for offering reserve bids. Nevertheless, due to the stochastic nature of the drivers’ behavior and market variables, forecasting and optimization algorithms are necessary for supporting an EV aggregator participating in the electricity market. This paper describes a new day-ahead optimization model between energy and secondary reserve bids and an operational management algorithm that coordinates EV charging in order to minimize differences between contracted and realized values. The use of forecasts for EV and market prices is included, as well as a market settlement scheme that includes a penalty term for reserve shortage. The optimization framework is evaluated in a test case constructed with synthetic time series for EV and market data from the Iberian electricity market.

Impacts of Contingency Reserve on Nodal Price and Nodal Reliability Risk in Deregulated Power Systems

The deregulation of power systems allows customers to participate in power market operation. In deregulated power systems, nodal price and nodal reliability are adopted to represent locational operation cost and reliability performance. Since contingency reserve (CR) plays an important role in reliable operation, the CR commitment should be considered in operational reliability analysis. In this paper, a CR model based on customer reliability requirements has been formulated and integrated into power market settlement. A two-step market clearing process has been proposed to determine generation and CR allocation. Customers' nodal unit commitment risk and nodal energy interruption have been evaluated through contingency analysis. Customers' reliability cost including reserve service cost and energy interruption cost have also been evaluated.

A novel multi-zone reactive power market settlement model: A pareto-optimization approach

This paper presents a Pareto-optimization based zonal day-ahead reactive power market settlement model named as multi-zone DA-RPMS model. Three competing objective functions such as Total Payment Function (TPF) for reactive power support services from generators/synchronous condensers, Total Real Transmission Loss (TRTL) and Voltage Stability Enhancement Index (VSEI) are optimized simultaneously by satisfying various power system operating constraints while settling the day-ahead reactive power market. The proposed multi-zone DA-RPMS model is tested and compared with single-zone DA-RPMS model on standard IEEE 24 bus reliability test system. A Hybrid Fuzzy Multi-Objective Evolutionary Algorithm (HFMOEA) approach is applied and compared with NSGA-II for solving these DA-RPMS models in competitive electricity market environment. Further, both the single-zone and multi-zone DA-RPMS models are also analyzed on the basis of market power owned by any generator/any generating company. The simulation results obtained confirm the superiority of HFMOEA in finding the better Pareto-optimal fronts in order to take better day-ahead reactive power market settlement decisions.

Analysis of the Professional Market Settlement Paradigm Based on Mixed-Use : A Case Study on Work-Live Community in Xiaoshan Commercial Market

The mixed-use development is the significant characteristic in every step of human settlement envelopment in Southeast China. With the carrier of local professional market, work-live community forms the mixed-use pattern. This papers expects to propose the important significance of professional market settlements development with Chinese characteristic throughout analyzing the mixed-use in professional market to set the construct and evaluation work-living complex. Xiaoshang Commercial Town will be used as a example to slove the applicability regulations to mixed-use space .