Pricing criterions in presence of intra- and inter-zonal constraints

Zonal partitioning is a method for solving the energy market, when network topology is taken into account. The reduction of the network to equivalent nodes representing zones, is unable to assess the intra-zonal flows. This could give rise to questionable and unreliable results. In this paper, a methodology for solving the energy market together with transmission service, when either inter-or intra-zonal congestions occur, is proposed. A double-side auction where both customers and sellers bid prices and quantities is considered. Test results are evaluated using the proposed approach on IEEE-118 bus test grid.