Optimization techniques for Available Transfer Capability (ATC) and market calculations

Sung-Kwan Joo, Chen Ching Liu, Yangfang Shen, Zelda B. Zabinsky, Jacques Lawarree

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

The recent movement towards an open, competitive market environment introduced new optimization problems such as market clearing mechanism, bidding decision and Available Transfer Capability (ATC) calculation. These optimization problems are characterized by the complexity of power systems and the uncertainties in the electricity market. Accurate evaluation of the transfer capability of a transmission system is required to maximize the utilization of the existing transmission systems in a competitive market environment. The transfer capability of the transmission networks can be limited by various system constraints such as thermal, voltage and stability limits. The ability to incorporate such limits into the optimization problem is a challenge in the ATC calculation from an engineering point of view. In the competitive market environment, a power supplier needs to find an optimal strategy that maximizes its own profits under various uncertainties such as electricity prices and load. On the other hand, an efficient market clearing mechanism is needed to increase the social welfare, i.e. the sum of the consumers' and producers' surplus. The need to maximize the social welfare subject to system operational constraints is also a major challenge from a societal point of view. This paper presents new optimization techniques motivated by the competitive electricity market environment. Numerical simulation results are presented to demonstrate the performance of the proposed optimization techniques.

Original languageEnglish
Pages (from-to)321-337
Number of pages17
JournalIMA Journal of Management Mathematics
Volume15
Issue number4
DOIs
Publication statusPublished - 2004 Oct 1
Externally publishedYes

Fingerprint

Optimization Techniques
Electricity Market
Maximise
Welfare
Optimization Problem
Uncertainty
Bidding
Electric power transmission networks
Optimal Strategy
Electricity
Power System
Profit
Profitability
Voltage
Market
Market environment
Optimization techniques
Engineering
Numerical Simulation
Computer simulation

Keywords

  • Available transfer capability
  • Improving hit-and-run
  • Market optimization
  • Markov decision process
  • Power system economics

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Mathematics(all)

Cite this

Optimization techniques for Available Transfer Capability (ATC) and market calculations. / Joo, Sung-Kwan; Liu, Chen Ching; Shen, Yangfang; Zabinsky, Zelda B.; Lawarree, Jacques.

In: IMA Journal of Management Mathematics, Vol. 15, No. 4, 01.10.2004, p. 321-337.

Research output: Contribution to journalArticle

Joo, Sung-Kwan ; Liu, Chen Ching ; Shen, Yangfang ; Zabinsky, Zelda B. ; Lawarree, Jacques. / Optimization techniques for Available Transfer Capability (ATC) and market calculations. In: IMA Journal of Management Mathematics. 2004 ; Vol. 15, No. 4. pp. 321-337.
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