Original title: Alternative Formulation of Pay-as-clear Auction in Electricity Markets
Authors: Aussel, D. ; Červinka, Michal ; Henrion, R. ; Pištěk, Miroslav
Document type: Research reports
Year: 2017
Language: eng
Series: Research Report, volume: 2368
Abstract: In widely used formulation of pay-as-clear electricity market the clearing price is given by the Lagrange multiplier of the demand sat- isfaction constraint in the problem of the Independent System Operator (ISO). Following this idea, one may usually calculate the market clearing\nprice analytically even for problems of higher dimensions. However, the economic interpretation of such a market setting is in question, since the minimized criterion does not correspond neither to the cost of production nor to the overall payment of consumers. This observation motivated us\nto propose an alternative clearing mechanism where the total payment of consumers is explicitly minimized. We show existence and uniqueness of the clearing price in such a setting.
Keywords: electricity market; Independent System Operator; Lagrange multiplier
Project no.: GA15-00735S (CEP)
Funding provider: GA ČR

Institution: Institute of Information Theory and Automation AS ČR (web)
Document availability information: Fulltext is available at the institute of the Academy of Sciences.
Original record: http://hdl.handle.net/11104/0282078

Permalink: http://www.nusl.cz/ntk/nusl-371611


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