OPTIMAL DISPATCH OF SPOT MARKET WITH INDIVIDUAL REVENUE ADEQUACY CONSTRAINTS FOR RISK AND CONGESTION MANAGEMENT

To manage the transmission congestion and to avoid prohibitively high nodal spot prices, the individual revenue adequacy constraints are added into the mathematical model for optimal dispatch of spot market in this paper. In each individual revenue adequacy constraint, some financial instruments, such as Contracts for Differences (CfDs) and Financial Transmission Rights (FTRs), are modelled to show their abilities to hedge price risks and their possible impacts on congestion management. Two numerical examples are given to illustrate the proposed method