On Market Clearing of Day Ahead Auctions for European Power Markets: Cost Minimisation versus Social Welfare Maximisation

  title={On Market Clearing of Day Ahead Auctions for European Power Markets: Cost Minimisation versus Social Welfare Maximisation},
  author={Ioan Alexandru Puiu and Raphael Andreas Hauser},
For the case of inflexible demand and considering network constraints, we introduce a Cost Minimisation (CM) based market clearing mechanism, and a model representing the standard Social Welfare Maximisation mechanism used in European Day Ahead Electricity Markets. Since the CM model corresponds to a more challenging optimisation problem, we propose four numerical algorithms that leverage the problem structure, each with di ff erent trade-o ff s between computational cost and convergence… 

Figures and Tables from this paper



Optimization-Based Approach for Price Multiplicity in Network-Constrained Electricity Markets

This paper addresses the problem of price multiplicity in network-constrained pool-based electricity markets under marginal pricing. This problem consists in the existence of multiple vectors of

Network-Constrained Day-Ahead Auction for Consumer Payment Minimization

This auction is an instance of price-based market clearing wherein market-clearing prices are explicitly modeled as decision variables of the optimization and has been successfully applied to several test systems including the IEEE 118-bus system.

Core-Selecting Mechanisms in Electricity Markets

It is shown that core-selecting mechanisms generalize the economic rationale of the locational marginal pricing (LMP) mechanism, and that they can approximate truthfulness without the price-taking assumption of the LMP mechanism.

Game theoretic analysis of electricity market auction mechanisms

By formulating a coalitional game corresponding to the electricity market, this work proposes alternative mechanisms that incentivize truthful bidding while ensuring shill bidding is not profitable.

Stochastic Behaviour of the Electricity Bid Stack: From Fundamental Drivers to Power Prices

We develop a fundamental model for spot electricity prices, based on stochastic processes for underlying factors (fuel prices, power demand and generation capacity availability), as well as a

Using EPECs to Model Bilevel Games in Restructured Electricity Markets with Locational Prices

It is established sufficient conditions for the existence of pure-strategy Nash equilibria for this class of bilevel games and some applications, and numerical examples of methods that attempt to find local Nash Equilibria or Nash stationary points of randomly generated electricity market games are presented.

Efficient Mechanisms for Bilateral Trading

Architecture of Power Markets

Liberalization of infrastructure industries presents classic economic issues about how organization and procedure affect market performance. These issues are examined in wholesale power markets. The