Decomposition of market clearing price based on single price auction model

In this paper, we propose a method to decompose market clearing price (MCP) for Japanese electricity market (single price auction market), i.e., MCP is divided into a variety of components corresponding to the concerned factors, such as bidding curves, transmission congestion, voltage limitations and other constraints. The decomposition is unique and components in MCP are identical to their increment values from the economics viewpoint because the derivations are based on the marginal conditions. This full information for MCP can be used not only to improve the efficient usage of power grid and congestion management, but also to design and analyze a bidding strategy, or to provide economic signals for generation or transmission investment.