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Incorporating unit commitment aspects to the European electricity markets algorithm: An optimization model for the joint clearing of energy and reserve markets

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  • Koltsaklis, Nikolaos E.
  • Dagoumas, Athanasios S.

Abstract

The European electricity markets’ integration aims at the market coupling among interconnected power systems and the enhancement of market competitive forces. This process is facilitated by the adoption of a common clearing algorithm among European power exchanges, entitled EUPHEMIA (Pan-European Hybrid Electricity Market Integration Algorithm), which however lacks to capture critical technical aspects of power systems, as done by the unit commitment problem including start-up and shut-down decisions, time constraints (minimum on- and off-times), as well as the consideration of ancillary services. This paper presents an optimization-based framework for the optimal joint energy and reserves market clearing algorithm, further utilizing the hourly offers module of the EUPHEMIA algorithm. In particular, through the formulation of a mixed integer linear programming (MILP) model and employing an iterative approach, it determines the optimal energy and reserves mix, the resulting market clearing prices, and it calculates the welfares of the market participants. The model incorporates intra-hourly power reserve constraints, as well as introduces new market products such as the option of forming linked groups of power units, aiming at supplying additional flexibility in the decision-making of the market participants. The model applicability has been assessed in the Greek power system and its interconnections with neighboring power systems in Southeast Europe. The proposed optimization framework can provide useful insights on the determination of the optimal generation and interconnection portfolios that address the new market-based operational challenges of contemporary power systems subject to technical and economic constraints.

Suggested Citation

  • Koltsaklis, Nikolaos E. & Dagoumas, Athanasios S., 2018. "Incorporating unit commitment aspects to the European electricity markets algorithm: An optimization model for the joint clearing of energy and reserve markets," Applied Energy, Elsevier, vol. 231(C), pages 235-258.
    • Handle: RePEc:eee:appene:v:231:y:2018:i:c:p:235-258
    DOI: 10.1016/j.apenergy.2018.09.098
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    7. Allard, Stéphane & Debusschere, Vincent & Mima, Silvana & Quoc, Tuan Tran & Hadjsaid, Nouredine & Criqui, Patrick, 2020. "Considering distribution grids and local flexibilities in the prospective development of the European power system by 2050," Applied Energy, Elsevier, vol. 270(C).
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    11. Dranka, Géremi Gilson & Ferreira, Paula & Vaz, A. Ismael F., 2021. "A review of co-optimization approaches for operational and planning problems in the energy sector," Applied Energy, Elsevier, vol. 304(C).
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    13. Koltsaklis, Nikolaos E. & Knápek, Jaroslav, 2023. "Assessing flexibility options in electricity market clearing," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    14. Divényi, Dániel & Polgári, Beáta & Sleisz, Ádám & Sőrés, Péter & Raisz, Dávid, 2021. "Investigating minimum income condition orders on European power exchanges: Controversial properties and enhancement proposals," Applied Energy, Elsevier, vol. 281(C).
    15. El-Sayed, Wael T. & El-Saadany, Ehab F. & Zeineldin, Hatem H. & Al-Sumaiti, Ameena S., 2020. "Fast initialization methods for the nonconvex economic dispatch problem," Energy, Elsevier, vol. 201(C).
    16. Juan Gea-Bermúdez & Kaushik Das & Hardi Koduvere & Matti Juhani Koivisto, 2020. "Day-Ahead Market Modelling of Large-Scale Highly-Renewable Multi-Energy Systems: Analysis of the North Sea Region towards 2050," Energies, MDPI, vol. 14(1), pages 1-17, December.
    17. Yeganefar, Ali & Amin-Naseri, Mohammad Reza & Sheikh-El-Eslami, Mohammad Kazem, 2020. "Improvement of representative days selection in power system planning by incorporating the extreme days of the net load to take account of the variability and intermittency of renewable resources," Applied Energy, Elsevier, vol. 272(C).
    18. Zhang, Cong & Greenblatt, Jeffery B. & MacDougall, Pamela & Saxena, Samveg & Jayam Prabhakar, Aditya, 2020. "Quantifying the benefits of electric vehicles on the future electricity grid in the midwestern United States," Applied Energy, Elsevier, vol. 270(C).
    19. Samuli Honkapuro & Jasmin Jaanto & Salla Annala, 2023. "A Systematic Review of European Electricity Market Design Options," Energies, MDPI, vol. 16(9), pages 1-26, April.
    20. Stéphane Allard & Vincent Debusschere & Silvana Mima & Tuan Tran Quoc & Nouredine Hadjsaid & Patrick Criqui, 2020. "Considering distribution grids and local flexibilities in the prospective development of the European power system by 2050," Post-Print hal-03133109, HAL.
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    22. Lu, Xiaoxing & Li, Kangping & Xu, Hanchen & Wang, Fei & Zhou, Zhenyu & Zhang, Yagang, 2020. "Fundamentals and business model for resource aggregator of demand response in electricity markets," Energy, Elsevier, vol. 204(C).
    23. Savelli, Iacopo & De Paola, Antonio & Li, Furong, 2020. "Ex-ante dynamic network tariffs for transmission cost recovery," Applied Energy, Elsevier, vol. 258(C).
    24. Hassan Shokouhandeh & Mehrdad Ahmadi Kamarposhti & Ilhami Colak & Kei Eguchi, 2021. "Unit Commitment for Power Generation Systems Based on Prices in Smart Grid Environment Considering Uncertainty," Sustainability, MDPI, vol. 13(18), pages 1-13, September.

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