Introduction of flexible production bids and combined package-price bids in a framework of integrated power-reserve market coupling (2004.13466v1)

Abstract: In this article we propose a multi-zonal integrated energy-reserve market model. We assume that bidders may submit their demand and supply bids on the one hand in the form of conventional hourly step bids and block bids, which are cleared and paid according to market clearing prices (MCPs). On the other hand, suppliers may submit so called flexible production bids, while both suppliers and consumers may submit fill-or-kill type package-priced combined bids -- these bids are accepted if their acceptance implies an improvement in the resulting total social welfare, which the market clearing algorithm aims to optimize. The model includes network constraints for the nominal case (if no reserves are activated) and also for perturbed cases when the allocated reserves are activated.