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Zonal pricing as a way to take into account network constraints on power exchange

Blinov I.V., PhD (Engin.)
Language: Ukrainian
Source: The Problems of General Energy, 2011, 2(25):49-53
Section: Development of the economic environment for functioning of the energy-sector
UDC: 339.17:339.33:621.316
Received: 07.04.2011
Published: 13.04.2011


The implementation of bilateral contracts and balancing electricity market (BCBM) in Ukraine requires solving the number of problems, which concern the definition of mathematical model of central segment of day-ahead market which can operate as power exchange. One of disputable problem is taking into account the network constraints in this segment of BCBM.
The article presents the way of taking into account the network constraints, which is based on splitting of day-ahead market into several markets with determination of a zonal marginal price in each zone and further integration of markets to meet an electricity demand in zones of generation shortage by exports of electricity from zones with surplus generation.
This approach combines main principles of taking into account the network constraints in day-ahead market: splitting and integrating the electricity markets. The above approach allows to reduce the weighted average price on the national power exchange and to estimate amount and prices of electricity export and import between different markets.

Keywords: day-ahead market, power exchange, electricity market splitting and integrating.


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