A Market-Based Analytical Method for the Structural Generation Decomposition

Ali Ghaznavi;  Mohammad Ebrahim Hajiabadi; Mansour Khaliliyan

DOI: https://doi.org/10.1007/s40998-019-00212-8

Abstract:

This paper presents a structural decomposition of generation of units based on the Karush–Kuhn–Tucker equations for a market problem with DC load flow. To achieve this aim, the mechanism for the discovery of electricity price is first restated and formulated. The Lagrangian method is then employed, to structurally decompose the generation of units into five components, each of which indicates distinct physical information. The first component consists of the weighted sum of the congestion lines. The second component consists of the weighted sum of the strategies of the marginal units. Awareness of this segment helps units’ owners to exercise market power. The third and fourth components are the weighted sum of low- and high-cost units’ generation, respectively. The fifth component is the weighted sum of load buses. The proposed decomposition leads to significant information regarding the generation of marginal units. The weighting coefficients of these terms indicate the sensitivity of the generations of marginal units to the capacity of congested lines, bidding strategies of marginal units, the capacity of low-cost units, the minimum generation of high-cost units and load buses, respectively. Furthermore, the decomposition of generation into the constitutive components reveals the contribution of congestion lines, GenCos and load buses to the generation of the marginal unit g. The simulation results of the IEEE

24-bus modified reliability test system demonstrate the efficiency of the proposed approach.