Design and testing of heuristic for market splitting in electric power exchange

Abstract

This paper proposes Taguchi's method for design of experiments to test market splitting algorithm of an electric power exchange. Such a mechanism is required because price-volume pairs of a trader are usually bound by confidentiality requirement and hence not available as test data. We also propose a novel and simple market splitting heuristic considering congestion management problem in a meshed network with incomplete information of the network. Simulation results are reported in the paper.