On zonal pricing for congestion management

Jokić, Andrej and Van Den Bosch, P.P.J. and Virag, Ana and Hermans, R.M. (2012) On zonal pricing for congestion management. = On zonal pricing for congestion management. In: 9th International Conference on the European Energy Market, EEM 12, 10-12.05.2012., Florence, Italy.

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Abstract

This paper is concerned with zonal pricing as an approach to congestion management. The main contributions of the paper are summarized as follows. Algebraic characterization of optimal zonal prices is presented, where physical tie-line limits are explicitly accounted for without introducing conservatism. In a case of affine bids, it is shown that the optimal zonal price in a zone can be represented as appropriately defined weighted average of auxiliary nodal prices in that zone. The weights used for averaging are directly derived from the bids made to the market. A novel numerical algorithm for computing optimal zonal prices is presented. The advantageous feature of the algorithm is that it can be implemented in a distributed fashion. An example is presented to illustrate and support the theoretical contributions of the paper.

Item Type:	Conference or Workshop Item (Lecture)
Keywords (Croatian):	congestion management; nodal prices; numerical algorithms; tie-line; weighted averages; zonal prices; zonal pricing; algorithms; commerce; optimization; costs
Subjects:	TECHNICAL SCIENCE
Divisions:	900 Department of Robotics and Production System Automation > 910 Chair of Engineering Automation
Indexed in Web of Science:	Yes
Indexed in Current Contents:	No
Citations JCR:	0 (20.09.2018.)
Date Deposited:	30 Apr 2015 06:43
Last Modified:	19 Nov 2018 16:28
URI:	http://repozitorij.fsb.hr/id/eprint/3921

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