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Alternative Formulation of Pay-as-clear Auction in Electricity Markets

SYSNO ASEP	0487415
Document Type	V - Research Report
R&D Document Type	The record was not marked in the RIV
Title	Alternative Formulation of Pay-as-clear Auction in Electricity Markets
Author(s)	Aussel, D. (FR) Červinka, Michal (UTIA-B)_{RID, ORCID} Henrion, R. (DE) Pištěk, Miroslav (UTIA-B)_{RID, ORCID}
Number of authors	4
Issue data	Praha: ÚTIA AV ČR v.v.i, 2017
Series	Research Report
Series number	2368
Number of pages	6 s.
Publication form	Print - P
Language	eng - English
Country	CZ - Czech Republic
Keywords	electricity market ; Lagrange multiplier ; Independent System Operator
Subject RIV	BA - General Mathematics
R&D Projects	GA15-00735S GA ČR - Czech Science Foundation (CSF)
Institutional support	UTIA-B - RVO:67985556
Annotation	In widely used formulation of pay-as-clear electricity market the clearing price is given by the Lagrange multiplier of the demand sat- isfaction constraint in the problem of the Independent System Operator (ISO). Following this idea, one may usually calculate the market clearing price analytically even for problems of higher dimensions. However, the economic interpretation of such a market setting is in question, since the minimized criterion does not correspond neither to the cost of production nor to the overall payment of consumers. This observation motivated us to propose an alternative clearing mechanism where the total payment of consumers is explicitly minimized. We show existence and uniqueness of the clearing price in such a setting.
Workplace	Institute of Information Theory and Automation
Contact	Markéta Votavová, votavova@utia.cas.cz, Tel.: 266 052 201.
Year of Publishing	2018

Number of the records: 1