Pricing in the Day-Ahead Electricity Market Subject to Electric Network Constraints

The article addresses the problem of achieving the maximum allowable active power flow entailing a phenomenon called grid cut set locking. Certain features of the Unified Energy System are described. These features result in that the system is divided into price zones and cause the occurrence of unequal indices of hubs that include nodes of the UES of Russia analysis model in which equilibrium electricity prices have the same tendency toward changing within the same price zone, and it should be noted that the difference between the hub indices cannot be leveled due to constraints imposed on the grid transmission capacity. The optimization problem objective function used in the analysis model in trading on the day-ahead market is analyzed along with its constraints, one of which is the active power flow through a controlled cut set. The application of the stability margins monitoring system is considered, the use of which makes it possible to refine and adjust the forecasts of limitations on the active power flow for cut sets. A conclusion is drawn on the possibility of applying the stability margins monitoring system for short-term planning purposes.