Integration of Renewable Energy in Electricity Markets

Abstract

In this paper we analyse the essential features of the day ahead electricity markets and a possible model to treat renewable energy bids in order to integrate them in a successfully way in a liberalized environment. In this paper, we also formulate the multi-period auction problem and detail an integrated model to deal with complex bids, renewable energy bids and network security constraints in electricity markets. The problem is solved using a Simulated Annealing based algorithm in order to overcome infeasibilities related both with complexity and network constraints. The developed approach is tested using a Case Study based on the IEEE 24 bus / 38 branch test system.