A combined pool/bilateral dispatch model for electricity markets with security constraints

the secure operation of the electric power system is a challenging task for the system operator which is responsible of its coordination, control and monitoring. in most power systems security is typically handled on a multi-state approach. in which case, security criteria are incorporated by means of additional constraints, modifying the initial dispatch calculation. in this paper a generation dispatch model for competitive energy markets considering security constraints is presented. the proposed approach combines the generation dispatch related to pool and bilateral markets with coupled post-contingency optimal power ？ows into a single optimal dispatch model, avoiding economic inefficiencies that appear in conventional multi-stage dispatch approaches. the proposed model is linear, and as such, it is based on a dc model of the network. a 6-bus didactic system and the ieee rts-24 bus test system are used in order to show the operation and effectiveness of the proposed approach and to compare it with the basic pool/bilateral dispatch with no security constraints. results show that the inclusion of security constraints lead to a higher dispatch cost. furthermore, it was found that the enforcement of firmed bilateral contracts might lead to system congestion.