Economic analysis of congestion management rules in interconnected electricity markets

The presentation focuses on the economic analysis of congestion management rules in terms of the social cost of an individual market in interconnected power grids. There is an increasing need for such studies as electricity markets continue to extend beyond traditional state or national borders with the objective of optimizing the social cost and benefits of the markets. In particular, the presentation shows how congestion management rules can be designed in such a way that it gives preference to the local generators over out-of-region generators in neighboring markets. Case studies was presented to illustrate that the more profitable market rules can change depending on whether the out-of-region generators contribute to congestion or relieve congestion inside its own region.