Multiobjective optimization for pricing system security in electricity markets

F. Milano, C.A. Canizares, M. Invernizzi
2003 IEEE Transactions on Power Systems  
This paper proposes a novel technique for representing system security in the operations of decentralized electricity markets, with special emphasis on voltage stability. An Interior Point Method is used to solve the Optimal Power Flow problem with a multi-objective function for maximizing both social benefit and the distance to maximum loading conditions. A 6-bus system with both supply and demand-side bidding is used to illustrate the proposed technique for both elastic and inelastic demand,
more » ... inelastic demand, and a 129-bus test system that models the Italian HV transmission network is used for testing the practical applicability of the proposed method. The results obtained show that the proposed technique is able to improve system security while yielding better market conditions through increased transaction levels and improved locational marginal prices throughout the system. Associate Professor of Power System Analysis. He is presently engaged in modeling, simulation, management and control of electric energy system in deregulated environments and power system stability assessment.
doi:10.1109/tpwrs.2003.810897 fatcat:hrdzka4wpnekfbophd332lbore