Co-optimization of energy market and ancillary services

Abstract

This paper describes an innovative approach of co-optimizing the energy and ancillary services markets in the Australian National Electricity Market. A heuristic based technique called horizon scan is applied as the optimization procedure to find optimal solution for the problem. Horizon scan is a heuristic based technique to search for optimal solution in a non-linear solution space. The performance of horizon scan in optimizing the energy market has been reported in a separate paper. The paper also includes several case studies depicting simplified market models. Optimal schedules resulting in economical dispatch costs are obtained when horizon scan is applied to optimize trading between multi-regions with inter-connectors. Linear and non-linear constraint equations are also included in the model to take into account dynamics of the power system