Market Coupling as the Universal Algorithm to Assess Zonal Divisions

Adopting a zonal structure of electricity market requires specification of zones' borders. In this paper we use social welfare as the measure to assess quality of various zonal divisions. The social welfare is calculated by Market Coupling algorithm. The analyzed divisions are found by the usag...

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Bibliographic Details
Main Authors:	Orynczak, Grzegorz, Jakubek, Marcin, Wawrzyniak, Karol, Klos, Michal
Format:	Journal Article
Language:	English
Published:	05-05-2014
Subjects:	Computer Science - Computational Engineering, Finance, and Science Computer Science - Computers and Society Computer Science - Systems and Control Quantitative Finance - General Finance
Online Access:	Get full text
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Summary:	Adopting a zonal structure of electricity market requires specification of zones' borders. In this paper we use social welfare as the measure to assess quality of various zonal divisions. The social welfare is calculated by Market Coupling algorithm. The analyzed divisions are found by the usage of extended Locational Marginal Prices (LMP) methodology presented in paper [1], which takes into account variable weather conditions. The offered method of assessment of a proposed division of market into zones is however not limited to LMP approach but can evaluate the social welfare of divisions obtained by any methodology.
DOI:	10.48550/arxiv.1405.0878