Presentation of a Bilevel Formulation for Price based Units Commitment (PBUC)

This paper presents a new model of GenCo strategyfor bidding and optimal energy in a centralized market toachieve the greatest profit. Market problem in the modeling ofthis paper has been considered in a period of time, byconsidering uncertainties of value prediction and consumptionload bidding and uncertainty for GenCo prices’ prediction.Given prediction error and Normal curve-based Monte Carlomethod has been used for uncertainty modeling. Due to theproblem’s high volume and scenarios’ high number, scenario’sreduction techniques along maintaining uncertainties modelingprecision has been used to reduce computation volume andspeed up the program implementation. In this paper, PBUCand the market-clearing problem has been modeledsimultaneously by a multilevel problem (Bi-Level) with twolevels; top level PBUC and low level market clearing. Then,this bi-level problem using Lagrange coefficients and byKarush-Kuhn-Tucker ( KKT ) conditions has been changedinto a single level mixed integer linear problem ( MILP ) foroptimization through typical mathematical techniques. In thispaper, GAMS program and CPLEX method have been used inorder to solve the MILP problems. Finally, 6-bus network(IEEE) has been examined to prove the efficiency of this newmodel.

Keywords:

Restructured Electricity Market , Price-based Unit Commitment , Market Clearing , bi-level Problem