Market clearing price calculation for a deregulated power market

Abstract

Background/Objectives: Most of the electricity markets are controlled by particular small group of firms rather than perfect competition. The electricity price determination is the long term process which depends upon cost of production, load demand, availability of generation, unit commitment and the transmission constraints. The main objective of this work is to maximize the social welfare function for the society. In the present scenario, the market clearing is based on stepped bids received from generators and consumers. Methods/Statistical Analysis: This paper focuses on implementing power systems optimization for forecasting Market Prices in deregulated electricity markets. In the recent energy trading scenario, determining the market clearing price place a vital role. Findings: The necessary solution is computing by collecting the clearing price from the generating station and load center and bids are offered in the closed loop form. Application/Improvements: To have a strategic bidding modelling the PDC in the oligopoly market is essential to have a accurate price in calculating the incomes from a new investment, so that it is not undervalued.