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Balancing Markets

  • Juan M. MoralesEmail author
  • Antonio J. Conejo
  • Henrik Madsen
  • Pierre Pinson
  • Marco Zugno
Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 205)

Abstract

This chapter explains the role of balancing markets in current power systems and introduces their functioning. It also provides several clearing algorithms, whose output is the optimal adjustments of production and consumption with respect to the day-ahead schedules, as well as the balancing energy prices. The development of such clearing algorithms emphasizes the differences between the implementation of a single-price and of a two-price settlements of imbalances. Furthermore, it shows how proactive demands and stepwise offers can be incorporated in the market clearing, and how balancing markets are cleared in a system with network constraints. These issues are further clarified through a number of simple examples. Finally, the main features of existing balancing markets in the USA and in Europe are briefly discussed.

Keywords

Market Operator Stochastic Generator Total Payment Clearing Price Stochastic Producer 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Juan M. Morales
    • 1
    Email author
  • Antonio J. Conejo
    • 2
  • Henrik Madsen
    • 1
  • Pierre Pinson
    • 3
  • Marco Zugno
    • 1
  1. 1.DTU ComputeTechnical University of DenmarkLyngbyDenmark
  2. 2.University of Castilla – La ManchaCiudad RealSpain
  3. 3.DTU ElektroTechnical University of DenmarkLyngbyDenmark

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