Solving the Market-to-Market Problem in Large Scale Power Systems

Classical large-scale network production cost analysis assume that the system is operated by centralized entity. However, large interconnected areas are operated by multiple operators. Classical dispatch models works very well if the transmission flow mainly comes from injections and withdraws within the market footprint. However, for highly integrated system such as Eastern Interconnection, external injections and withdraws may cause loop flows on transmission lines owned by one ISO/RTO or utility.
These inefficiencies in the management of inter-regional interconnections need to be modeled adequately to assess the real value of transmission investment. In this talk we will explain the use of JuMP to address this issue as an extension to PowerSimulations.jl and the implementation of novel solution algorithms for adequate geographic decomposition of large scale network simulation models.