Multi-objective market clearing of joint energy and reserves auctions ensuring power system security

A model and solution approach to day-ahead market clearing of joint energy and reserves auctions is proposed in this paper. The model represents the clearing system used by ISO in charge of both the market operation and system security. A Multiobjective Mathematical Programming (MMP) formulation is implemented for provision of ancillary services (Automatic Generation Control or AGC, Spinning, Non-spinning and operational reserves) as well as energy in simultaneous auctions by pool-based aggregated market scheme. System security is taken into account in the market clearing procedure as the extra objective functions of the optimization problem. So, in the MMP formulation of the market clearing process, the objective functions (generation cost and security indices) are optimized while meeting AC power flow constraints, system reserve requirements and lost opportunity cost (LOC) considerations. The model is applied to the IEEE 24-bus Reliability Test System (IEEE 24-bus RTS), and simulation studies are carried out to examine the effectiveness of the proposed method.