Energy market and reserve market modeling in simultaneous and serial implementation methods with the aim of reducing electricity costs

Ghoraba, R.; Ameli, M.

Growing Science » International Journal of Industrial Engineering Computations » Energy market and reserve market modeling in simultaneous and serial implementation methods with the aim of reducing electricity costs

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International Journal of Industrial Engineering Computations

ISSN 1923-2934 (Online) - ISSN 1923-2926 (Print) Quarterly Publication Volume 3 Issue 1 pp. 25-34 , 2012

Energy market and reserve market modeling in simultaneous and serial implementation methods with the aim of reducing electricity costs Pages 25-34 Download PDF

Authors: Ramin Ghoraba, Mohammad Taghi Ameli

DOI: 10.5267/j.ijiec.2011.08.0013

Keywords: Ancillary service, Linear programming, Power market, Reserve market, Uniform pricing

Abstract: In competitive electricity markets, power needed for the network’s reserve is purchased from the ancillary service market. In this market, producing units and buyers alike announce their offers. As will be seen, energy market and reserve market implementation is possible with simultaneous method and serial method by choosing each of the methods based on the type of market and other conditions. In this paper, the energy market and the active power reserve market are simulated in two formations as serial and simultaneous for a uniform pricing system. In each method, limitations of transferring power over the lines, based on available transfer capacity (ATC), is considered alongside the other constraints in the energy market and the active power reserve market. Then, during network overload, economic dispatch is accomplished between winner units in the reserve market by using a linear optimization problem, and needed power is provided from these units at a minimal cost. Finally, our proposed methods are implemented on an IEEE 39-bus test system and results are analyzed.

How to cite this paper

 Ghoraba, R & Ameli, M. (2012). Energy market and reserve market modeling in simultaneous and serial implementation methods with the aim of reducing electricity costs.International Journal of Industrial Engineering Computations , 3(1), 25-34.

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