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Expanding the electricity market into the retail domain calls for inexpensive mass-produced smart devices that enable enable small customers to customers to participate in local energy transactions by managing the energy production/consumption and submitting buy/sell bids to the market. In this context, this paper presents a mathematically proven practical approach for bidding of an autonomous smart transactive agent in local energy markets. To reach this goal, behaviors of both risk-neutral and risk-averse agents selling energy to the market are modeled taking into account expected profit and risk criteria. Subsequently, an optimal multi-step quantity-price bidding strategies of risk-neutral and risk-averse agents are extracted. In this context, this paper: 1) introduces the effective metrics and criteria for evaluating a bidding strategy; 2) provides all theorems and lemmas required for reaching an optimal bidding strategy for either a risk-neutral or risk-averse agent; and 3) evaluates and presents the developed approach for different market environments. The developed methodology is shown to be effective in practical applications especially for local markets. [ABSTRACT FROM AUTHOR]

Electricity companies have been under a great pressure to improve their technical and financial performances in order to survive and thrive in the deregulated environment. Therefore, these companies are seeking for innovative approaches to take the most out of the restricted resources. These approaches inherently concentrate the available budgets to the most critical components. In this regard, prioritizing the system components and identifying the most critical ones play a vital role in the planning and operation of the system. This paper presents a novel approach to prioritize power transmission system components. In the proposed methodology, a criticality factor is defined and implemented to rank the components based on their impacts on the operation of the power system. Furthermore, a complete model of substations including misoperation of circuit breakers and protection systems is, for the first time, taken into account in the critical component identification process. The proposed approach is used to identify the vulnerable parts of the system and assist the decision makers to manage the limited resources. The proposed methodology is, then, applied to the IEEE 24-bus Reliability Test System, and components are prioritized accordingly. [ABSTRACT FROM AUTHOR]

Efficient operation of electricity markets necessitates a penalty mechanism to penalize market participants who do not fulfill their market obligations. However, the traditional penalty mechanisms that have been successfully implemented in wholesale electricity markets may result in unintended consequences in transactive markets where the participants have uncertain supply or demand. In this regard, this letter investigates main challenges of applying traditional penalty mechanisms in transactive energy markets. Some efficient strategies are also proposed to operate the transactive markets in such a way that guarantees its security as well as liquidity. [ABSTRACT FROM AUTHOR]