Method for generation bidding and transaction considering transmission losses and transmission constraints

Abstract

A new model for multi-period generation bidding and transaction in the electricity market is described based on the nonlinear formulation. Pump station is considered in the multi-period model. The effect of security constraints and transmission losses on generation schedule is considered. Nonlinear programming is used to get the most profitable value according to the power flow and the bids offered by plants. The transaction schedule for a 6-bus system with a pump station is calculated to demonstrate the effectiveness of the proposed model. The results show that the security constraints and transmission losses have important impact on transaction schedule, and by multi-period model the transaction schedule may obtain more profitable value.