Security constrained unit commitment pricing optimization using linear programming for electricity markets

#This invention relates generally to the optimization management of wholesale electricity markets. In particular, the invention pertains to the optimization of security constrained unit commitment in regional wholesale day ahead energy markets.

#This invention relates generally to a method of determining the optimal commitments of energy and ancillary services for wholesale energy market clearing and pricing. In particular, the invention pertains to the optimal selection of offers submitted by market participants to satisfy energy and ancillary service requirements for regional electricity markets while satisfying operating and security constraints. It may be used by electricity market operators such as Regional Transmission Organizations, Independent System Operators, and Independent Transmission Providers. It may also be used by market participants as a tool to study various possible bidding strategies and to simulate possible market results.

#A brief description of how electricity markets function under the Federal Energy Regulatory Commission (“FERC”) regulations may be helpful in understanding the field of the present invention. In April 1996, FERC Order 888, “Promoting Wholesale Competition Through Open Access Nondiscriminatory Transmission Services by Public Utilities,” required jurisdictional public utilities to file open access transmission tariffs to allow competition in the supply of wholesale electrical energy. Under the Order 888 market entities (utilities, merchant generators, energy traders, etc) compete to provide energy based on several factors including cost and availability of transfer capacity on transmission facilities. Market entities can be limited from providing energy to certain regions based on the availability of transfer capacity on transmission facilities. This order had the effect of introducing competition by allowing access to the transmission system to allow transportation of electricity from buyer to seller.

#The present invention will now be described with reference to the accompanying drawings wherein:

#FIG. 1 is a schematic diagram of the system in accordance with the principles of the present invention.

#To illustrate the principles of the present invention, a Security Constrained Unit Commitment (SCUC) co-optimization engine as developed by Siemens Power Transmission & Distribution, Inc., the assignee of the present invention, shall be described in detail. While this SCUC co-optimization engine constitutes a preferred embodiment of the invention, it is not the intention of applicants to limit the scope of the invention to the particular details of this engine. Rather, it is the intention of the applicants that the invention be defined by the appended claims and all equivalents thereto.

#Referring to FIG. 1, there is shown an exemplary block diagram of the components and interfaces of an SCUC co-optimization engine 100 in accordance with the principles of the present invention. The SCUC co-optimization engine 100 consists generally of a Market User Interface 102, a Load Forecast engine 104, a component for handling and archiving market data (HIS) 106, SCUC 108, a component for market commodity pricing (Pricing Engine) 110, and a Market Database 114. A Mixed Integer Linear Programming engine is also included as an optimization tool (MILP), 118.

#The objective of the day ahead security constrained unit commitment problem is defined as a minimization of the sum of the total market costs. This can be mathematically formulated as: