We examine the problem of clearing day-ahead electricity market auctionswhere each bidder, whether a producer or consumer, can specify a minimum profitor maximum payment condition constraining the acceptance of a set of bid curvesspanning multiple time periods in locations connected through a transmissionnetwork with linear constraints. Such types of conditions are for exampleconsidered in the Spanish and Portuguese day-ahead markets. This helpsdescribing the recovery of start-up costs of a power plant, or analogously fora large consumer, utility reduced by a constant term. A new market model isproposed with a corresponding MILP formulation for uniform locational priceday-ahead auctions, handling bids with a minimum profit or maximum paymentcondition in a uniform and computationally-efficient way. An exactdecomposition procedure with sparse strengthened Benders cuts derived from theMILP formulation is also proposed. The MILP formulation and the decompositionprocedure are similar to computationally-efficient approaches previouslyproposed to handle so-called block bids according to European market rules,though the clearing conditions could appear different at first sight. Bothsolving approaches are also valid to deal with both kinds of bidssimultaneously, as block bids with a minimum acceptance ratio, generalizingfully indivisible block bids, are but a special case of the MP bids introducedhere. We argue in favour of the MP bids by comparing them to previous modelsfor minimum profit conditions proposed in the academic literature, and to themodel for minimum income conditions used by the Spanish power exchange OMIE.
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