Congestion management solution under secure bilateral transactions in hybrid electricity market for hydro-thermal combination

The deregulation of power system has created an environment of competitiveness among different market players and the transmission lines are forced to operate near to their thermal or stability limits. It is a challenge with System Operators (SO) to ensure a secure and reliable transmission of power under these conditions. This paper proposes a rescheduling based congestion management strategy in hybrid (pool + bilateral) electricity market structure for a combination of hydro and thermal units. The proposed congestion management problem has been formulated as mixed integer nonlinear programming (MINLP) problem with an objective to minimize the congestion management cost by suitably rescheduling the hydro and thermal units based on their up and down generation cost bids. The hydro units having lowest operational cost and fast startup time have been used to alleviate the congestion by considering non-concave piecewise linear performance curves for them. The secure bilateral transactions have been ensured while rescheduling of the generators for alleviating the congestion. The performance of the proposed model has been demonstrated by solving the congestion management problem on modified IEEE-24 bus system. 2014 Elsevier Ltd. All rights reserved.