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Investigating minimum income condition orders on European power exchanges: Controversial properties and enhancement proposals

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  • Divényi, Dániel
  • Polgári, Beáta
  • Sleisz, Ádám
  • Sőrés, Péter
  • Raisz, Dávid

Abstract

One of the most difficult challenges of deregulated electricity markets is the proper management and operation planning of economically non-convex generators. The origin of economic non-convexity is twofold. Firstly, generators generally have non-zero minimum output power (MOP) levels, below which they cannot sustain operation. Secondly, they might have substantial fixed costs. The direct consideration of these characteristics leads to very hard non-convex mathematical problems with the increased probability of computational difficulties and long solution time for the market clearing process.

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  • 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).
    • Handle: RePEc:eee:appene:v:281:y:2021:i:c:s0306261920315002
    DOI: 10.1016/j.apenergy.2020.116070
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