Print Email Facebook Twitter Trading power instead of energy in day-ahead electricity markets Title Trading power instead of energy in day-ahead electricity markets Author Philipsen, R.M. (TU Delft Algorithmics) Morales-Espana, G. (ECN, Petten) de Weerdt, M.M. (TU Delft Algorithmics) De Vries, Laurens (TU Delft Energie and Industrie) Date 2019 Abstract Day-ahead electricity markets are inefficient due to their coarse discretisation of time and their representation of electricity production and consumption in energy per time interval. This leads to excessive costs and infeasible schedules in the market clearing results. Some real-world systems have increased the resolution to improve accuracy, but this comes at a high computational cost. We propose an alternative, based on using linear power trajectories in the day-ahead scheduling process, which represent the momentary electricity production. Changing from a traditional energy-based to such a power-based formulation of the scheduling method can reduce cost by several percentage points, leading to a cost reduction of millions of euros in real-world systems on a yearly basis. Attempting to do so by increasing the resolution of the schedule would be accompanied by large increases in computational demands. Furthermore, we provide market design options to implement power-based bidding and pricing in day-ahead electricity markets, showing that pricing and market rules which encompass existing markets are readily available for implementation, and illustrate these with examples. Subject Day-ahead marketMarket designPower-based schedulingUnit commitment To reference this document use: http://resolver.tudelft.nl/uuid:80eac803-a5d5-4aad-a09b-1f01cd163c1e DOI https://doi.org/10.1016/j.apenergy.2018.09.205 ISSN 0306-2619 Source Applied Energy, 233-234, 802-815 Part of collection Institutional Repository Document type journal article Rights © 2019 R.M. Philipsen, G. Morales-Espana, M.M. de Weerdt, Laurens De Vries Files PDF 47111662a_1_s2.0_S0306261 ... 1_main.pdf 1.85 MB Close viewer /islandora/object/uuid:80eac803-a5d5-4aad-a09b-1f01cd163c1e/datastream/OBJ/view