Optimal electricity interchange schedules via a market-based coordination procedure

摘要

The restructuring of the electric power industry in North America introduced the creation of new grid operator entities known as Independent System Operators (ISOs) or Regional Transmission Organizations (RTOs), which are in charge of the management of both the bulk power grid and the associated electricity markets in their footprints. In this paper, we use the generic term Independent Grid Operator (IGO) to refer to any of these organizations. While the power grids may be interconnected, each IGO operates its transmission system and electricity market independently of the interconnected IGO's. Due to absence of specific policy requirements and/or concerted coordination efforts, the associated electricity markets are not harmonized across the borders of interconnected IGOs which fail to harness a substantial fraction of the potential benefits attainable through their common interfaces. In this paper, we propose a coordination scheme which leads to optimal interface schedules for any two neighboring areas. To this end, we formulate the electricity market auction for the entire interconnection and decompose it based on the alternating direction minimization method (ADMM). The proposed methodology is applied to a 4-bus two-area test system. The algorithm converges to the optimal generation and interchange schedules and is applicable to large-scale networks.