1. A market-based approach for enabling inter-area reserve exchange
- Author
-
Maryam Kamgarpour, Orcun Karaca, and Stefanos Delikaraoglou
- Subjects
FOS: Computer and information sciences ,Computer science ,electricity markets ,coalitional game theory ,mechanism design ,public choice problem ,media_common.quotation_subject ,0211 other engineering and technologies ,Stability (learning theory) ,Rationality ,02 engineering and technology ,Management Science and Operations Research ,01 natural sciences ,Industrial and Manufacturing Engineering ,Microeconomics ,010104 statistics & probability ,Computer Science - Computer Science and Game Theory ,FOS: Mathematics ,Clearing ,0101 mathematics ,Mathematics - Optimization and Control ,media_common ,021103 operations research ,Applied Mathematics ,Payment ,Core (game theory) ,Balance (accounting) ,Transmission (telecommunications) ,Optimization and Control (math.OC) ,Incentive compatibility ,Software ,Computer Science and Game Theory (cs.GT) - Abstract
Considering the sequential clearing of energy and reserves in Europe, enabling inter-area reserve exchange requires optimally allocating inter-area transmission capacities between these two markets. To achieve this, we provide a market-based allocation framework and derive payments with desirable properties. The proposed min-max least core selecting payments achieve individual rationality, budget balance, and approximate incentive compatibility and coalitional stability. The results extend the works on private discrete items to a network of continuous public choices., Operations Research Letters, 49 (4), ISSN:0167-6377, ISSN:1872-7468
- Published
- 2021