2000 character limit reached
A market-based approach for enabling inter-area reserve exchange (2102.08690v1)
Published 17 Feb 2021 in math.OC and cs.GT
Abstract: Considering the sequential clearing of energy and reserves in Europe, enabling inter-area reserve exchange requires optimally allocating inter-area transmission capacities between these two markets. To achieve this, we provide a market-based allocation framework and derive payments with desirable properties. The proposed min-max least core selecting payments achieve individual rationality, budget balance, and approximate incentive compatibility and coalitional stability. The results extend the works on private discrete items to a network of continuous public choices.