Simulation methodologies and modeling of cooptimized Energy and reserve electricity markets

This paper presents a methodology along with practical implementation considerations for performing energy market simulations of co-optimized Energy and Ancillary Services markets with and without full and detailed transmission representation for various applications. The inclusion of full transmission representation leads to Locational Marginal Pricing (LMP) based energy market models that are widely used in the United States. Exclusion of the network along with certain other simplifications leads to energy market models widely used in Europe. In either case, the modeling formulation of the Market Simulation is provided in the paper along with insights about the factors that mainly influence the prices in nodal (i.e., LMP) and zonal energy markets. Representative numerical results from the application of the proposed methodology on two different studies of the Greek National Energy Market are also presented.