DOI: 10.5937/jaes11-4604
This is an open access article distributed under the CC BY-NC-ND 4.0 terms and conditions.
Volume 11 article 265 pages: 201 - 208
In
the twentieth century electricity was produced and transmitted by and between
monopolistic public electric power companies. Over the last twenty years,
electricity markets have been deregulated allowing customers to choose from a
number of competing suppliers and producers. On one hand electricity market
participants try to fi rst satisfy their own country’s demand and, on the other
hand, to transmit electricity across borders into neighborhood markets.
Cross-border transmission is part of a competition where market participants
have non-discriminatory access to interconnected transmission lines. This paper
examines the problem of day-ahead planning at trading sections of electricity companies.
The underlying assumption is that the demand and supply are known in advance.
Available transmission capacities are also known as well as additional
transmission capacities that can be purchased. The prices and amounts of
trading and transmission are subjects of auctions. The problem of day-ahead
planning is here disscussed from the perspective of a decision maker of an energy
trading company (ETC). Decisions to be made are: where and how much electricity
should the ETC buy and sell, and which transmission capacity will be used in
order to maximize daily profit. The problem is formulated according to real-
life experience of a Serbian ETC which trades in Central and South-East Europe.
It is further modeled as a directed multiple-source and multiple-sink network and
then represented by linear programming (LP) mathematical model in which the
total daily profi t is maximized subject to market constraints and fl ow
capacities. The main goal of this model is to provide a useful tool for
preparing auction bids. Numerical examples are given in order to illustrate possible
applications of the model.
This research was partially supported by the Ministry of Education and Science, Republic of Serbia, Projects numbers TR32013 and TR35045.
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