Method and system for conducting an auction for electricity markets

• US 20030041002A1
• Filed: 05/17/2001
• Published: 02/27/2003
• Est. Priority Date: 05/17/2001
• Status: Abandoned Application

• Current Assignee: Perot Systems Corporation (Dell Technologies Inc.)
• Original Assignee: Perot Systems Corporation (Dell Technologies Inc.)
• Inventors: Shirmmohammadi, Dariush, Hao, Shangyou
• Application Number:
  US09/860,350
• Publication Number:
  US 20030041002A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: H02J 3/008 involving trading of energy or energy transmission rights
• CPC Class Codes: Y04S 10/50 Systems or methods supporting the power network operation or management, involving a certain degree of interaction with the load-side end user applications
• CPC Class Codes: Y04S 50/10 Energy trading, including energy flowing from end-user application to grid

Abstract

A system and method for processing bids of an auction by electricity market participants for electricity market commodities. The method includes retrieving model parameters and multiple bids for the electricity market commodities. The model parameters and bids are applied to equations representative of an electricity market, where the equations include at least one variable to be optimized. The equations are simultaneously solved for the variable(s). In simultaneously solving for the variable(s), the equations are iteratively solved to optimize the variable(s) according to a predetermined objective. Results of the auction are published to notify the market participants. The electricity market commodities include electric energy, reserve capacity, and transmission.

Claims

1. A method for processing bids of an auction by electricity market participants for electricity market commodities, comprising:

retrieving model parameters and bid data for the electricity market commodities;

applying the model parameters and bid data to equations representative of an electricity market, the equations including at least one variable to be optimized;

simultaneously solving the equations for the at least one variable, said solving being performed iteratively to optimize the at least one variable according to a predetermined objective; and

publishing results of the auction to notify the market participants.

2. The method according to claim 1, wherein said solving computes schedules for the electricity market commodities.

3. The method according to claim 1, wherein said solving adjusts the at least one variable along a direction of change until a norm of changes of the at least one variable is smaller than a predefined tolerance.

4. The method according to claim 1, wherein the model variables include at least one of the following:

locational price variables, control variables, objectives, and constraints.

5. The method according to claim 4, wherein the locational price variables include at least one of the following:

locational energy price, locational reserve price, and transmission path prices.

6. The method according to claim 4, wherein the locational price variables are computed for multiple time intervals.

7. The method according to claim 4, wherein the locational price variables represent an aggregate of power grid connections, the power grid connections being modeled as buses in a power grid model.

8. The method according to claim 4, wherein the control variables include at least one of the following:

schedulable quantity of bids, bus angle, electric energy usage across transmission paths, and capacity use of transmission paths.

9. The method according to claim 4, wherein the objectives include consumer payment.

10. The method according to claim 4, wherein the constraints include at least one of the following:

equality constraints, including at least one of the following;

power flow balance, price, market constraints, and slack bus angle; and

inequality constraints, including at least one of the following;

bid sufficiency, flow limits, interface limits, schedule limits.

11. The method according to claim 1, further comprising matching the bid data to power grid locations.

12. The method according to claim 1, wherein said publishing includes posting solved solutions of the at least one variable.

13. The method according to claim 1, wherein the energy commodities include at least one of the following:

electric energy, reserve capacity, and transmission usage.

14. The method according to claim 1, wherein a market participant submits a bid including a set of points defining a price and quantity curve including a combination of electric energy and reserve capacity range.

15. The method according to claim 1, wherein the auction results includes scheduled quantities and locational clearing prices.

16. A system for processing bids by electricity market participants of an auction for electricity market commodities, the system comprising:

a database including model parameters and bid data, the model parameters and bid data being applied to equations representative of the electricity market, the equations including at least one variable to be optimized;

a processor coupled to said database, the processor for simultaneously solving the equations for the at least one variable to be optimized, the solving being performed iteratively to optimize the at least one variable according to a predetermined objective; and

means for publishing results of the auction to notify the electricity market participants.

17. The system according to claim 16, wherein the at least one variable includes commodities, the commodities including electric energy, reserve capacity, and transmission capacity.

18. The system according to claim 17, wherein said processor adjusts the at least one variable along a direction of change until a norm of changes of the at least one variable being smaller than a predefined tolerance.

19. The system according to claim 16, wherein the model parameters include at least one of the following:

locational price variables, control variables, objectives, and constraints.

20. The system according to claim 19, wherein the locational price variables are computed for multiple intervals.

21. The system according to claim 19, wherein the locational price variables represent an aggregate of power grid connections, the power grid connections being modeled as buses in a power grid model.

22. The system according to claim 19, wherein the locational price variables include at least one of the following:

locational energy price, locational reserve price, and transmission path prices.

23. The system according to claim 19, wherein the control variables include at least one of the following:

schedulable quantity of bids, bus angle, electric energy usage across transmission paths, and capacity use of transmission paths.

24. The system according to claim 19, wherein the objectives include consumer payment.

25. The system according to claim 19, wherein the constraints include at least one of the following:

equality constraints, including the following;

power flow balance, power grid network price, market constraints, and slack bus angle; and

inequality constraints, including at least one of the following;

bid sufficiency, flow limits, interface limits, and schedule limits.

26. The system according to claim 16, wherein said processor further matches the bid data to power grid locations.

27. The system according to claim 16, wherein said means for publishing performs at least one of the following:

posts solved solutions of the at least one variable on an electronic media for the participants to retrieve, and

electronically communicates the solved for at least one variable to the electricity market participants.

28. The system according to claim 16, wherein said publishing includes at least one of the following:

posting and electronically communicating at least one of the solved at least one variable.

29. The system according to claim 16, wherein the electricity market commodities include at least one of the following:

electric energy, reserve capacity, and transmission usage.

30. The system according to claim 16, wherein the results of the auction include at least one of the following:

scheduled quantities transmission usages, and locational clearing prices.

31. A method for conducting an auction for an integrated electricity market, the method comprising:

opening a data collection process of the auction of the integrated market to receive bids on electricity commodities from market participants;

receiving the bids on the electricity commodities, the electricity commodities including electric energy, reserve capacity, and transmission;

closing the data collection process of the auction of the integrated market; and

simultaneously processing the bids to determine results for the integrated electricity market.

32. The method according to claim 31, further comprising validating the bids for the integrated electricity market.

33. The method according to claim 32, wherein said processing includes performing an optimization process to determine the outcome of the auction.

34. The method according to claim 33, wherein the optimization process includes solving a set of necessary optimality conditions included in a set of simultaneous equations.

35. The method according to claim 31, wherein the bids for the integrated electricity market include at least one time interval for multiple commodities.

36. The method according to claim 31, further comprising publishing results from the auction.

37. The method according to claim 36, wherein the results include electric energy, reserve capacity, and transmission commodities.

38. The method according to claim 36, wherein the publishing includes at least one of the following:

posting the results of the computation on a electronic media; and

communicating the results to the market participants via an electronic communication.

39. The method according to claim 38, wherein the posted results include public information accessible by market participants.

40. The method according to claim 38, wherein the electronically communicated results include private information.

41. The method according to claim 38, wherein the electronic communication includes at least one of the following:

e-mail, text messaging, and facsimile.

42. The method according to claim 31, wherein a market participant submits a bid including a set of points defining a price and quantity curve, and the price and quantity curve including a combination of electric energy and reserve capacity range.

43. The method according to claim 31, wherein said market participants submit bids including a set of constraints defining relations between electric energy schedules.

44. The method according to claim 31, wherein results of the auction include at least one of the following:

scheduled quantities corresponding to each bid submitted, and

locational prices for electric energy, reserve capacity commodities, and transmission usage.

45. A system for conducting an auction for an integrated electricity market, the system comprising:

a computer server coupled to a communication network, said computer server operating the integrated electricity market;

a plurality of electronic devices coupled to the communication network, said electronic devices in communication with said computer server for submitting bids for electricity commodities, the electricity commodities including electric energy, reserve capacity, and transmission capacity; and

at least one database coupled to said computer server, said at least one database storing the submitted bids, power grid model parameters, and electricity market parameters, said computer server simultaneously processing the submitted bids to determine results of the auction.

46. The system according to claim 45, wherein said electronic devices include at least one of the following:

computer, facsimile, telephone, and personal communication device.

47. The system according to claim 45, wherein said server further publishes results of the auction available to said electronic devices.

48. The system according to claim 47, wherein the publishing of the results includes at least one of the following:

posting on the communication network and electronically transmitting.

49. The system according to claim 45, wherein the processing includes iteratively solving a set of simultaneous equations.

50. The system according to claim 49, wherein the processing of the bids is performed after an acceptance time for new bids and bid modifications.

51. The system according to claim 49, wherein the processing of the bids includes an optimization process.

52. The system according to claim 45, wherein results of the auction include scheduled quantities of the electricity commodities, locational prices of the electricity commodities, and transmission usages.

53. The system according to claim 45, wherein market participants submit bids including:

a set of points defining price and quantity curves, and

and a combination of electric energy and reserve capacity range.

54. A computer-readable medium having stored thereon sequences of instructions, the sequences of instructions including instructions, when executed by a processor, causes the processor to:

retrieve modeling parameters and a plurality of bids for electricity market commodities;

apply the modeling parameters and bids to equations representative of an electricity market, the equations including at least one variable to be optimized;

solve the equations for the at least one variable, said solving being performed iteratively to optimize the at least one variable according to a predetermined objective; and

publish results of the auction to notify the market participants.

55. A method for participating in an integrated electricity auction conducted by a market operator for market participants, the method comprising:

establishing a communication link by a market participant with a market operator;

communicating a bid for electricity market commodities from the market participant to the market operator, the electricity market commodities including electric energy, reserve capacity, and transmission capacity; and

receiving results of the auction from the market operator by the market participant, the results being simultaneously generated.

56. The method according to claim 55, wherein the results of the auction include schedules for the electricity market commodities.

57. The method according to claim 55, wherein the results of the auction are received via an electronic communication.

58. The method according to claim 55, wherein the results of the auction are published on a publicly accessible location.

59. The method according to claim 55, wherein said receiving includes:

accessing a network location; and

entering a password at the network location to receive the results.

60. A computer-readable medium having stored thereon sequences of instructions, the sequences of instructions including instructions, when executed by a processor, causes the processor to:

establish a communication link by a market participant with a market operator;

communicate a bid for electricity market commodities from the market participant to the market operator, the electricity market commodities including electric energy, reserve capacity, and transmission capacity; and

receiving results of the auction from the market operator by the market participant, the results being simultaneously generated.

61. At least one computer programmed to execute a process for participating in an integrated electricity market in which a server computer operated by a market operator conducts an auction for electricity market commodities, the process comprising:

transmitting electronic signals to establish a communication link between a participating computer and the server computer;

generating at least one bid for the electricity market commodities including electric energy, reserve capacity, and transmission capacity; and

causing electronic signals representing the at least one bid to be sent to the server computer for submission of the at least one bid to be submitted to the auction, the bids being simultaneously processed to determine results of the auction.

62. The process according to claim 61, wherein at least one bid includes data representative of a price and quantity curve.

63. The process according to claim 61, further comprising:

determining results of the auction based on the at least one bid; and

causing electronic signals representing the results of the auction to be sent from the server computer to the participating computer.

64. At least one computer programmed to process bids submitted by market participants for electricity market commodities, the process comprising:

receiving electronic signals representing electricity market model parameters;

receiving electronic signals representing the bids submitted by the market participants;

applying the electricity market model parameters and bids to equations representative of an electricity market, and including at least one variable to be optimized;

iteratively computing solutions to the at least one variable until the at least one variable satisfies a predetermined objective;

determining results of the auction based on the at least one variable being optimized; and

causing electronic signals representing the results of the auction to be sent to publish the results of the auction.

65. The process according to claim 64, wherein the results of auction are published on an electronic network.

66. The process according to claim 64, wherein the bids include price and schedule information for electric energy, reserve capacity, and transmission.

67. A system for determining results of an auction conducted for electricity market commodities of an integrated energy market, the system comprising:

means for storing model parameter and bid data, the bid data including electric energy, reserve capacity and transmission information;

means for reading the model parameters and bid data from said means for storing;

means for utilizing the model parameters and bid data to determine results of the auction; and

means for publishing the results of the auction.