An integrated day-ahead market clearing model: Incorporating paradoxically rejected/accepted orders and a case study

Date

2018-10-01

Author

YORUKOGLU, Sinan
Avşar, Zeynep Müge
Kat, Bora

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

194
views

0
downloads

In the electricity day-ahead markets (DAMs), market participants place their orders in the form of desired/accepted price levels for the submitted quantities. The market operator evaluates these orders and announces the clearing quantities and market clearing prices (MCPs) within an hour. In this paper, a mathematical model is proposed for the exact solution of clearing electricity DAM with a focus on the current Turkish system. The model is a non-linear programming (NLP) problem that maximizes total social welfare and takes into account all types of orders that are submitted in the Turkish DAM. In order to ensure a feasible solution, the concept of paradoxically accepted/rejected orders is introduced. Two versions of the mathematical model are considered, allowing for one type of paradoxical processing in each version. For the computational experiments, a sample data set of 25 days, representing the conditions in the Turkish DAM, is generated and published on an open library. The model is solved to optimality within the practical time limitation of the market operator in all cases.

Subject Keywords

OR in energy, Electricity day-ahead market, Combinatorial auctions, Social welfare, Non-linear programming

URI

https://hdl.handle.net/11511/32523

Journal

ELECTRIC POWER SYSTEMS RESEARCH

DOI

https://doi.org/10.1016/j.epsr.2018.07.007

Collections

Graduate School of Natural and Applied Sciences, Article

Suggestions

OpenMETU
Core

A Study of the day-ahead energy market auctions from a multi-objective perspective Ceyhan, Gökhan; Lokman, Banu; Department of Industrial Engineering (2020) In this study, we develop approaches for the market clearing problem in European day-ahead electricity markets. We first present the surplus maximization problem and extend it with pricing constraints that limit market loss or missed surplus associated with paradoxically accepted and rejected bids. We develop a Benders decomposition algorithm with price-based Benders infeasibility cuts to solve the problem. Our algorithm outperforms the state-of-the-art Benders decomposition algorithms and the primal-dual a...
Extensions for Benders cuts and new valid inequalities for solving the European day-ahead electricity market clearing problem efficiently Ceyhan, Gökhan; Köksalan, Mustafa Murat; Lokman, Banu (2022-07-16) © 2021 Elsevier B.V.We study the day-ahead electricity market clearing problem under the prevailing market design in the European electricity markets. We revisit the Benders decomposition algorithm that has been used to solve this problem. We develop new valid inequalities that substantially improve the performance of the algorithm. We generate instances that mimic the characteristics of past bids of the Turkish day-ahead electricity market and conduct experiments. We use two leading mixed-integer programmi...
A Cost-Based Approach to Elicit Ancillary Service Tariffs from Unified Capacity and Energy Tariffs Sezer, Hikmet; Güven, Ali Nezih; Tör, Osman Bülent; Cebeci, Mahmut Erkut; Teimourzadeh, Saeed (2022-01-01) Establishing separated markets for capacity, energy, and ancillary services (AS) is one of the key steps to liberalize electricity sector and realize electricity markets. This study aims at eliciting AS tariffs from unified capacity and energy tariffs through a cost-based approach. In the proposed framework, maintaining annual revenue requirements of the power plants is considered as the main objective while separating the AS tariff from unified tariffs. The conducted study considers two types of unified ta...
A novel methodology for medıum and long-term electricity market modeling İlseven, Engin; Göl, Murat; Department of Electrical and Electronics Engineering (2020-11-15) In the electricity market, there is a considerable degree of uncertainty in electricity demand, supply, and price due to the uncertainty in parameters such as economic growth, weather conditions, fuel prices, and timing of new investments, etc. These factors in return affect the predictability of the electricity market. This thesis aims to increase the predictability and observability of the electricity market by means of a suitable and validated electricity market modeling methodology designed for medium a...
The Relationship Between Energy Commodity Prices and Electricity and Market Index Performances: Evidence from an Emerging Market Ordu, Beyza Mina; Soytaş, Uğur (2016-01-01) We investigate the effect of energy commodity price movements on market and electricity index returns in Turkey for the periods before, during, and after the year 2008. Although the Turkish economy is highly reliant on oil, we find that oil price does not lead either electricity or market indexes. This might be attributable to sluggish integration of financial markets in Turkey compared to developed markets. Natural gas price leads electricity index in the pre-2008 period. Its significance is reduced follow...

Citation Formats

S. YORUKOGLU, Z. M. Avşar, and B. Kat, “An integrated day-ahead market clearing model: Incorporating paradoxically rejected/accepted orders and a case study,” ELECTRIC POWER SYSTEMS RESEARCH, pp. 513–522, 2018, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/32523.