Bidding market based on single price model with network constraints

This paper aims to develop a single price auction model with AC transmission network for Electricity Market in Japan, based on the principle of maximizing social surplus. Specifically, we first formulate the auction market as a nonlinear optimisation problem, which has almost the same form as the conventional optimal power flow problem, and then propose an algorithm to derive both market clearing price and trade volumes of participants even for the case of market-splitting. As indicated in the paper, the proposed approach can be used not only for the price evaluation of auction or bidding market but also for analysis of bidding strategy and congestion management. Several numerical examples are used to demonstrate effectiveness of our method.