Evaluating the Impacts of Environmental Constraints on Ancillary Service in Integrated Energy and Reserve Market

The problem of external effects is studied in the electricity market. The main frame of economic dispatch is modelled on the basis of integrated energy and reserve co- optimisation model. In addition to the energy and reserve co- optimised model, environmental effects are incorporated in dispatch model as new constraints, resulting in affecting energy production cost. The suggested model is based on DC network model to mathematically formulate as linear programming model. This study shows that environmental constraint as new external constraint in electricity market would affect the market efficiencies in the electricity market.