Pricing Binary Variables of System-Wide Constraints for Power System Optimization
Regular Papers|更新时间:2026-10-15
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Pricing Binary Variables of System-Wide Constraints for Power System Optimization
CSEE Journal of Power and Energy SystemsVol. 10, Issue 3, Pages: 1131-1144(2024)
作者机构:
1. State Key Laboratory of Power Transmission Equipment and System Security and New Technology, College of Electrical Engineering, Chongqing University,Chongqing,China
2. Department of Electrical Engineering, The Hong Kong Polytechnic University,Hong Kong,China
3. Faculty of Computational Mathematics and Cybernetics, Moscow State University,Moscow,Russia
Jiaxun Li, Wei Lin, Zhifang Yang, et al. Pricing Binary Variables of System-Wide Constraints for Power System Optimization[J]. CSEE Journal of Power and Energy Systems, 2024, 10(3): 1131-1144.
DOI:
Jiaxun Li, Wei Lin, Zhifang Yang, et al. Pricing Binary Variables of System-Wide Constraints for Power System Optimization[J]. CSEE Journal of Power and Energy Systems, 2024, 10(3): 1131-1144.DOI: 10.17775/CSEEJPES.2022.00540.
Pricing Binary Variables of System-Wide Constraints for Power System Optimization
With the trend of multiple energies or flexible demand in power systems
binary variables appear in system-wide constraints
which are the foundation of marginal pricing currently in markets. An appropriate pricing method incentivizes compliance of market participants; otherwise
compliance can be incentivized by paying discriminatory uplift payments which jeopardize transparency of markets. This paper proposes two theorems to examine whether the binary variables brought by multiple energies and flexible demand will impact compliance under marginal pricing. The first theorem shows sufficient conditions with which marginal pricing with fixed binary variables incentivizes compliance
while the second theorem shows sufficient conditions to require uplift payments. To improve transparency by reducing uplift payments under cases which fall into the second theorem
this paper further proposes a pricing method by combining 1) designed constraints to price binary variables in system-wide constraints
and 2) convex hull pricing to price binary variables in private constraints. Effectiveness of the proposed theorems and pricing method is verified in an electricity-gas case (consisting of the IEEE 30-bus system and the NGS 10-node system) and the IEEE 118-bus test system.
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references
20. P. R. Gribik, W. W. Hogan, and S. L. Pope, “Market-clearing electricity prices and energy uplift,” 2007. [Online]. Available: https://sites.hks.harvard.edu/fs/whogan/