INTEGRATION OF COMPLEX BIDS IN ELECTRICITY MARKETS

Abstract

The relationship between generation and demand can be accomplished by centralized forward markets, as the day ahead pool market, or by bilateral contracts. In their simplest version, day ahead pool markets are bid based uniform price mechanisms that receive buying and selling bids from the market agents. These bids usually correspond to pairs of quantity / price, that is, available quantity of power, minimum price to receive for selling bids and quantity to be supplied, maximum price to pay for buying bids. If no more information is provided, the day-ahead market corresponds in fact to 24 hourly uniform auctions in the sense that each one is independent from the results in previous ones and does not determine or have any impact in subsequent ones. In fact, this simple model has to be enhanced by considering multi block generator bids and by admitting several types of constraints that couple the referred hourly dispatches. In this case, we have a set of complexity constraints t