An MCP approach for hydrothermal coordination in deregulated power markets

to model imperfect competition among electricity producers transmission. Wei and Smeers used a Variational Inequality (vr) approach for computing the market equilibria addressing the problem of transmission pricing [5]. ~thOUgh modeling advances have been notable, limitations persist in tackling realistic power system. Abstract: This paper proposes a new methodology for addressing the to represent both its annual and hyperannual hydrothermal power generation scheduling in a competitive market. The method explicitly states the electricity generation market equilibrium by analytically formulating the equations that express the optimal behavior of the existing generation companies, considering the technical constraints that affect the scheduling of their units. The long term operation planning of a generation company, fully adapted t4i. His a congestion Pricing scheme for subsequent system of non-linear equations c & be directly solved taking advantage of its Mixed Complementarity Problem (MCP) structure, which allows for the use of special complementarity methods. A hydrothermal coordination model based on the proposed methodology has been developed and implemented in GAMS. A case study is also presented to show its successful application to the large-scale Spanish electric power system