A multi-objective price-based model in a combined market of energy with uncertain capacity availability

It is analyzed a price based multi-objective payment and revenue optimization model considering the short-term impact of the uncertain availability supply of generation units in the operation of a power system. The model considers a multi-period combined market of energy and ancillary reserve services. A hybrid strategy is formulated based on a multi-objective bi-level mixed linear model, which uses a combined stochastic strategy with possible scenarios and the Monte Carlo Simulation. Expected financial indexes and allocations produced by the hybrid model are compared with similar ones produced by the usual Stochastic Bid Cost Minimization (SBCM) model. Results show that it is possible to establish tradeoffs between expected payments and revenues without unnecessary benefit (or penalize) agents considering as well the impact of the required security levels and scenarios of units´ failures.