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A Bienstock–Zuckerberg-Based Algorithm for Solving a Network-Flow Formulation of the Convex Hull Pricing Problem.
- Source :
- IEEE Transactions on Power Systems; May2020, Vol. 35 Issue 3, p2108-2119, 12p
- Publication Year :
- 2020
-
Abstract
- This paper studies the convex hull pricing problem in electricity markets using a network-flow-based formulation. The network represents the feasible operating region of a generating unit, and the associated flow constraints define a polyhedron with an integrality property. These facts provide modeling flexibility with respect to the inclusion of unit features and allow to obtain convex hull prices from a linear programming problem. The formulation is solved using a primal-dual approach based on the algorithm developed by Bienstock and Zuckerberg. The algorithm, together with the implemented pre-processing and initialization techniques, allows achieving lower solution times than those obtained by state-of-the-art algorithms available in commercial solvers, e.g., barrier and dual simplex. Furthermore, results suggest that the proposed formulation obtains the minimum uplift payments even when time-dependent start-up costs are included, making the approach more robust than the best documented compact formulation. The paper also discusses the effect of sub-optimal prices on uplift payments by relaxing the optimality criterion of the algorithm, observing a significant impact on lost opportunity costs. [ABSTRACT FROM AUTHOR]
- Subjects :
- ALGORITHMS
OPPORTUNITY costs
STARTUP costs
ELECTRICITY pricing
POLYHEDRA
Subjects
Details
- Language :
- English
- ISSN :
- 08858950
- Volume :
- 35
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- IEEE Transactions on Power Systems
- Publication Type :
- Academic Journal
- Accession number :
- 142817129
- Full Text :
- https://doi.org/10.1109/TPWRS.2019.2953862