November 21, 2017
CORE (room b-135)
Congestion Management in a Stochastic Dispatch Model for Electricity Markets
Mette Björndal, Norwegian School of Economics
We consider an electricity market organized with two settlements: one for a pre-delivery (day-ahead) market and one for real time, where uncertainty regarding production from non-dispatchable energy sources as well as variable load is resolved in the latter stage. We formulate two models to study the efficiency of this market design. In the myopic model, the day-ahead market is cleared independently of the real-time market, while in the integrated stochastic dispatch model the possible outcomes of the real-time market clearing are considered when the day-ahead market is cleared. We focus on how changes in the design of the electricity market influence the efficiency of the dispatch, measured by expected total cost or social welfare.