Empirical comparison of three models for determining market clearing prices in Turkish day-ahead electricity market

TL;DR

This paper empirically compares three different models for market clearing in the Turkish day-ahead electricity market, focusing on how they handle non-convexities and bid conflicts using real data.

Contribution

It introduces three rule-based models for non-convex market clearing and evaluates their performance with real Turkish market data.

Findings

Model 1 allows bid rejection and acceptance of conflicting bids.

Models 2 and 3 restrict bid actions to resolve conflicts.

Performance varies based on rule set and market conditions.

Abstract

Bidders in day-ahead electricity markets want to sell/buy electricity when their bids generate positive surplus and not to take an action when the reverse holds. However, non-convexities in these markets cause conflicts between the actions that the bidders want to take and the actual market results. In this work, we investigate the non-convex market clearing problem of Turkish market operator and propose three different rule sets. The first rule set allows both rejection of bids with positive surplus and acceptance of bids with negative surplus. The second and the third sets only allow one of these conflicted cases. By using total surplus maximization as the objective, we formulate three models and statistically explore their performance with the real data taken from Turkish market operator.