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Modeling and analysis of a decentralized electricity market: An integrated simulation/optimization approach

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  • Sarıca, Kemal
  • Kumbaroğlu, Gürkan
  • Or, Ilhan

Abstract

In this study, a model is developed to investigate the implications of an hourly day-ahead competitive power market on generator profits, electricity prices, availability and supply security. An integrated simulation/optimization approach is employed integrating a multi-agent simulation model with two alternative optimization models. The simulation model represents interactions between power generator, system operator, power user and power transmitter agents while the network flow optimization model oversees and optimizes the electricity flows, dispatches generators based on two alternative approaches used in the modeling of the underlying transmission network: a linear minimum cost network flow model and a non-linear alternating current optimal power flow model. Supply, demand, transmission, capacity and other technological constraints are thereby enforced.

Suggested Citation

  • Sarıca, Kemal & Kumbaroğlu, Gürkan & Or, Ilhan, 2012. "Modeling and analysis of a decentralized electricity market: An integrated simulation/optimization approach," Energy, Elsevier, vol. 44(1), pages 830-852.
    • Handle: RePEc:eee:energy:v:44:y:2012:i:1:p:830-852
    DOI: 10.1016/j.energy.2012.05.009
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    5. Pappachen, Abhijith & Peer Fathima, A., 2017. "Critical research areas on load frequency control issues in a deregulated power system: A state-of-the-art-of-review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 163-177.
    6. Zakeri, Behnam & Virasjoki, Vilma & Syri, Sanna & Connolly, David & Mathiesen, Brian V. & Welsch, Manuel, 2016. "Impact of Germany's energy transition on the Nordic power market – A market-based multi-region energy system model," Energy, Elsevier, vol. 115(P3), pages 1640-1662.
    7. Min, C.G. & Kim, M.K. & Park, J.K. & Yoon, Y.T., 2013. "Game-theory-based generation maintenance scheduling in electricity markets," Energy, Elsevier, vol. 55(C), pages 310-318.
    8. Chen, Peipei & Wu, Yi & Zou, Lele, 2019. "Distributive PV trading market in China: A design of multi-agent-based model and its forecast analysis," Energy, Elsevier, vol. 185(C), pages 423-436.

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