In this paper we propose an algorithm for addressing the medium term hydrothermal coordination problem faced by a generation company when operating in an electricity market. This problem is formulated and solved as a stochastic Linear Mixed Complementarity Problem. In order to deal with realistic problems, we propose the use of Bender’s decomposition technique. A numerical example in the context of the Spanish electricity market illustrates the potential of the algorithm we propose.
Keywords: Market equilibrium, complementarity problem, stochastic programming, Benders decomposition.
15th PSCC, Power Systems Computing Conference, Liege (Belgium). 22-26 August 2005
Publication date: August 2005.
J. Cabero, Á. Baíllo, S. Cerisola, M. Ventosa, Application of benders decomposition to an equilibrium problem, 15th PSCC, Power Systems Computing Conference. Lieja, Belgium, 22-26 August 2005