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A causation-based framework for pricing and cost allocation of energy, reserves, and transmission in modern power systems

delete2026-08-11
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OA
AI
L
Luíza Ribeiro
A
Alexandre Street *
J
José M. Arroyo
R
Rodrigo Moreno
DOI:10.1016/j.ejor.2026.08.005delete
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Abstract

Abstract

En 中文
• A new causation-based pricing scheme for energy, reserves, and transmission is given. • A novel security charge allows alignment with contingency-based reserve requirements. • Separate prices are given for up and down-spinning reserves and transmission services. • The Lagrangian dual-based approach yields cost recovery and system revenue adequacy. • Transmission rent allocation considers post-contingency states and opportunity costs.
Keywords:
OR in energy
Causation-based pricing
Co-optimized energy and reserve electricity markets
Security charges

Journal

European Journal of Operational Research cover
European Journal of Operational Research
IF:
6
Papers:
2.2W
Citations:
6.4W

Organization

U
Universidad Adolfo Ibanez
Scholars:
1.2K
Papers: 1.3K
Citations: 17
U
Universidad de Castilla-La Mancha
Scholars:
9.7K
Papers: 9.0K
Citations: 7
P
pontifical catholic university of rio de janeiro
Scholars:
141
Papers: 65
Citations: 0
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