The generation dispatch in day-ahead electricity markets has recently been performed through auction procedures. For such a purpose, hourly offers and bids are respectively submitted by producers and consumers to the market operator (MO), which, in turn, calculates the amounts of dispatched generation and demand, as well as the market clearing prices, using appropriate auction tools. The auction models aims at the minimization of hourly offer/bid costs, subject to the main constraints associated with generation and transmission subsystems. The main purpose of this research project is to investigate an auction procedure that is suitable to electricity markets involving hydrothermal systems. Thermal units are represented in detail in the model proposed, including start-up and shut down costs, ramp-up and ramp-down limits, start-up and shut-down limits, as well as minimum up and down times. The most important constraints associated with hydro generation are also incorporated. The solution of the proposed problem is performed using GAMS/CPLEX optimization package.
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