Day ahead markets

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2013
Kütaruk, Kaan
Day Ahead Market is a mechanism in electricity markets for adjusting the supply-demand energy and capacity balance by providing bids one day before the clearing. Market operator needs to know the available energy and capacity for reaching minimal-cost supply-demand balance one day earlier than the market has been cleared. Minimizing cost of the electricity and capacity during 24 hours of a day requires accurate information concerning the available electricity and capacity. Day-ahead marketing activity is performed so as to reach financial certainty which can remove the risk of incurring high operational and startup prices. For Day Ahead marketing, the trading activity has to be performed one day earlier for the delivery of electricity the next day. Bilateral markets, exchanges and pools are the architectures which employ the Day Ahead Market Model. Each of these architectures or combination can provide financial hedging and unit commitment. The most suitable architecture is chosen by concerns over lack of private markets and nonprofit system operators in performing the coordination functions related with unit commitment. Thus, some theories of market try to explain the structure for evaluating the combinations of different designs. The study will include the development of a mathematical model for Day Ahead Market Architecture and a computer program that will simulate the developed model on the Turkish Electricity Market.
Citation Formats
K. Kütaruk, “Day ahead markets,” M.S. - Master of Science, Middle East Technical University, 2013.