Real-time energy balancing with OOS/OOM/RMR reliability requirements for a zonal electricity market

This paper presents a new formulation to model a real-time energy balancing market with the local/system reliability requirements. The proposed methodology enables an independent system operator (ISO) to perform real-time balancing by issuing both market instructions and out-of-market instructions to ensure the system reliability in an integrated optimization based framework. The discussion in this paper is in compliance with California ISO's market rules and procedures and the concepts are applicable to other realtime electricity markets.