Thermal plant bids and market clearing in an electricity pool. Minimization of costs vs. minimization of consumer payments
- Resource Type
- Periodical
- Authors
- Alonso, J.; Trias, A.; Gaitan, V.; Alba, J.J.
- Source
- IEEE Transactions on Power Systems IEEE Trans. Power Syst. Power Systems, IEEE Transactions on. 14(4):1327-1334 Nov, 1999
- Subject
- Power, Energy and Industry Applications
Components, Circuits, Devices and Systems
Costs
Electricity supply industry
Algorithm design and analysis
Power system analysis computing
Power system economics
Power generation economics
Thermal loading
Software tools
Power systems
Power engineering computing
- Language
- ISSN
- 0885-8950
1558-0679
The Spanish wholesale electricity market started on January 1st 1998. Though it is based on simple price/quantity bids, it incorporates some provisions to take thermal plant running requirements into account. This paper presents these rules and its mathematical treatment, focusing on a possible implementation of the "minimum income condition", which allows thermal generators to declare minimum stable loads. It also shows another key point in the debate: whether the algorithm should minimize costs or consumer payments.