Coordinated Spot Market for Congestion Management of Inter-regional Electricity Markets

Abstract—The rapid growth of inter-regional trading among electricity markets requires the development of new market-ori-ented mechanisms for the inter-regional congestion management of such trading. In this paper, we deal with the operation of power systems consisting of several interconnected electricity markets. We propose an alternative approach to inter-regional trade that avoids the flaws of forward markets with explicit auctioning of in-terconnections capacities. We propose the integration of a forward market with a balancing (spot) market for inter-regional exchanges based on nodal pricing. The interaction of transmission system op-erators (TSOs) belonging to adjacent markets is efficiently taken into account through a decentralized optimal power flow (OPF), which is solved by interior point methods. Index Terms—Congestion management, interior point methods, inter-regional trade, optimal power flow. I