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Optimal Computation of Network Indicators for Electricity Market Bidding Zones Configuration Considering Explicit N-1 Security Constraints

Author

Listed:
  • Cristian Bovo

    (Dipartimento di Ingegneria Industriale e dell’Informazione, ENSIEL-Università di Pavia, 27100 Pavia, Italy)

  • Valentin Ilea

    (Dipartimento di Energia, ENSIEL-Politecnico di Milano, 20156 Milano, Italy)

  • Enrico Maria Carlini

    (Terna Rete Italia SpA Dispacciamento e Conduzione, 00144 Roma, Italy)

  • Mauro Caprabianca

    (Terna Rete Italia SpA Dispacciamento e Conduzione, 00144 Roma, Italy)

  • Federico Quaglia

    (Terna Rete Italia SpA Dispacciamento e Conduzione, 00144 Roma, Italy)

  • Luca Luzi

    (Terna Rete Italia SpA Dispacciamento e Conduzione, 00144 Roma, Italy)

  • Giuseppina Nuzzo

    (Terna Rete Italia SpA Dispacciamento e Conduzione, 00144 Roma, Italy)

Abstract

In this paper an optimization problem designed to calculate electric grid specific indicators to be used within model-based methodologies for the definition of alternative electricity market bidding zone configurations is designed. The approach integrates within the framework of a bidding zone review process aligned to the specifications of the Commission Regulation (EU) 2015/1222 (CACM) and Regulation (EU) 2019/943 of the European Parliament and of the Council (CEP). The calculated solution of the optimization provides locational marginal prices and allows to determine, outside the optimization problem, the power transfer distribution factors for critical elements. Both indicators can be used as inputs by specially designed clustering algorithms to identify model-based electricity market bidding zone configurations, as alternative to the current experience-based configurations. The novelty of the optimization problem studied in this paper consists in integrating the N-1 security criteria for transmission network operation in an explicit manner, rather than in a simplified and inaccurate manner, as encountered in the literature. The optimization problem is evaluated on a set of historical and significant operating scenarios of the Italian transmission network, carefully selected by the Italian transmission system operator. The results show the optimization problem capability to produce insightful results for supporting a bidding zone review process and its advantages with respect to simplified methodologies encountered in the literature.

Suggested Citation

  • Cristian Bovo & Valentin Ilea & Enrico Maria Carlini & Mauro Caprabianca & Federico Quaglia & Luca Luzi & Giuseppina Nuzzo, 2021. "Optimal Computation of Network Indicators for Electricity Market Bidding Zones Configuration Considering Explicit N-1 Security Constraints," Energies, MDPI, vol. 14(14), pages 1-31, July.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:14:p:4267-:d:594474
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    References listed on IDEAS

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    1. Pietro Colella & Andrea Mazza & Ettore Bompard & Gianfranco Chicco & Angela Russo & Enrico Maria Carlini & Mauro Caprabianca & Federico Quaglia & Luca Luzi & Giuseppina Nuzzo, 2021. "Model-Based Identification of Alternative Bidding Zones: Applications of Clustering Algorithms with Topology Constraints," Energies, MDPI, vol. 14(10), pages 1-17, May.
    2. Burstedde, Barbara, 2012. "From Nodal to Zonal Pricing - A Bottom-Up Approach to the Second-Best," EWI Working Papers 2012-9, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    3. Bjørndal, Endre & Bjørndal, Mette & Gribkovskaia, Victoria, 2014. "A Nodal Pricing Model for the Nordic Electricity Market," Discussion Papers 2014/43, Norwegian School of Economics, Department of Business and Management Science.
    4. Le, Hong Lam & Ilea, Valentin & Bovo, Cristian, 2019. "Integrated European intra-day electricity market: Rules, modeling and analysis," Applied Energy, Elsevier, vol. 238(C), pages 258-273.
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