Modeling Short-Term Security in Electricity Markets

Abstract

Security of transmission is a crucial element of any electricity systems. Due to the highly meshed structure of the European power system, single outages can lead to significant disturbances in the whole system. This paper describes the process of the contingency analysis, and determines preventive control actions in a security constrained optimal dispatch. The model is applied to an aggregated network of Belgium and the Netherlands. We find that generation dispatch costs as well as nodal prices are influenced by the re-dispatch due to a reduced available transmission capacity.

Keywords: electricity, network modeling, N-1 criterion, security constrained optimal dispatch

JEL Classification: L94, L51, D61