Market flow calculation in electricity market operations

This paper gives the background and role of the market flow in market-based operating entity and describes the market flow methodology. It proposes that the market flow method calculates the same impact result on a flowgate as the unit dispatch system (UDS) flow and proves it mathematically. The equivalence of the market flow and the UDS flow shows that the UDS flow change on a constraint due to the UDS binding will have the same effect on the change in the market flow under the electricity market operations. It demonstrates the effectiveness of using the market flow in the congestion management process and coordinated management of transmission constraints. The numerical results on a 23-bus test system are also illustrated.