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.
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Morales, J., Conejo, A., Madsen, H., Pinson, P., Zugno, M. (2014). Balancing Markets. In: Integrating Renewables in Electricity Markets. International Series in Operations Research & Management Science, vol 205. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-9411-9_4
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DOI: https://doi.org/10.1007/978-1-4614-9411-9_4
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