37th Annual Hawaii International Conference on System Sciences, 2004. Proceedings of the (2004)
Big Island, Hawaii
Jan. 5, 2004 to Jan. 8, 2004
This paper presents a joint market structure for energy, spinning reserves and VAR support in a multi-area setting. It is based on a co-optimization that can simultaneously optimize all three commodities across the "seams". An auxiliary problem principle based decomposition scheme is applied to the overall optimization for coordinating interchanges of energy and ancillary services between control areas. The proposed decomposition approach preserves independent dispatching for neighboring areas while achieves overall optimum. Nodal prices for energy and opportunity cost payments to forgone energy profit due to providing reserves and VAR support are also addressed. We believe the algorithm is of particular interest in the restructuring electricity industry for resolving seams issues. An illustrative example of a modified IEEE 30-bus system is used to demonstrate the validity of proposed algorithm.
"Coordinated Interchange Scheduling and Opportunity Cost Payment: A Market Proposal to Seams Issues," 37th Annual Hawaii International Conference on System Sciences, 2004. Proceedings of the(HICSS), Big Island, Hawaii, 2004, pp. 20051c.