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, Volume 9, Issue 1, pp 1–22 | Cite as

Mathematical programming and electricity markets

  • Antonio J. Conejo
  • Francisco J. Prieto
Article

Abstract

The electric power industry in Europe and all over the world is undertaking major regulatory and operational changes. The underlying rationale behind all these changes is to move from a centralized operation approach to a competitive one. That is, the understanding of power supply as a public service is being replaced by the notion that a competitive market is a more appropriate framework to supply reliable and cheap electric energy to consumers. In some cases, the aforementioned transition process has included the privatization of power utilities. This new framework requires new tools and procedures, and some of these procedures drastically differ from traditional ones. Therefore, new challenging mathematical programming and operations research problems naturally arise in this context. This paper provides a review of some of these problems, particularly operational problems spanning a time horizon from one day to one year. The approach adopted emphasizes mathematical programming issues, describing the structure and characteristics of these problems and suggesting appropriate solution techniques.

Key Words

Electric power competitive markets large-scale optimization mixed-integer optimization 

AMS subject classification

90B30 90C06 90C11 91B26 

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Copyright information

© Sociedad de Estadística e Investigación Operativa 2001

Authors and Affiliations

  • Antonio J. Conejo
    • 1
  • Francisco J. Prieto
    • 2
  1. 1.Departamento de Ingeniería Eléctrica, ETSI IndustrialesUniversidad de Castilla - La Mancha Campus Universitario s/nCiudad RealSpain
  2. 2.Departmento de Estadística y EconometríaUniversidad Carlos III de MadridGetafe (Madrid)Spain

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