NDLI: Economic inefficiencies and cross-subsidies in an auction-based electricity pool

Content Provider	IEEE Xplore Digital Library
Author	Conejo, A.J. Galiana, F.D. Arroyo, J.M. Garcia-Bertrand, R. Cheong Wei Chua Huneault, M.
Copyright Year	1969
Abstract	This paper compares two contrasting yet often used electricity market-clearing procedures: (i) an auction-based algorithm including congestion management and transmission-loss cost allocation; and (ii) an optimal power flow. The auction procedure produces a single-period unit commitment, and hence, can be compared directly to an optimal power flow solution. These algorithms are compared in terms of the economic efficiency of the solution attained, and in terms of cross-subsidies among generators and demands. The purpose of this comparison is to quantify the actual cost to market participants of using a simple, seemingly transparent procedure, such as an auction-based algorithm, versus an integrated but computationally intensive one, such as an optimal power flow.
Sponsorship	IEEE Power Engineering Society
Starting Page	221
Ending Page	228
Page Count	8
File Size	568834
File Format	PDF
ISSN	08858950
Volume Number	18
Issue Number	1
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2003-02-01
Publisher Place	U.S.A.
Access Restriction	One Nation One Subscription (ONOS)
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Load flow Propagation losses Power generation economics Cost function Electricity supply industry Power generation Energy management Power system economics Power transmission lines Loss measurement
Content Type	Text
Resource Type	Article
Subject	Energy Engineering and Power Technology Electrical and Electronic Engineering

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