Investigating Feasibility and Necessity for Mixed-Integer Linear Programming in an Integrated Grid and Power Market Simulation

Current developments in power market systems point out the need for appropriate coordination of the power market and the power grid. Building on the proposed integrated grid and power market simulation by Borning and Moser, this paper applies and extends the existing approach to a European scope with a one year temporal horizon. By this, the modelling level of detail of thermal power plants in an integrated grid and power market simulation can be determined accurately as a mixed-integer linear problem. Due to its high complexity, a decomposition approach is inevitable. Therefore, the authors propose a new approach combining a two-step heuristic with a subsequent Lagrangian decomposition. Exemplary investigation for the European power system shows that the systemic influence of the high modelling level of detail is not significant regarding total generation cost as well as line loadings but regarding the power plant specific dispatches. Therefore, the authors conclude thatfor a simulation of the whole system regarding total production cost and line loadings the mixed-integer linear program is not necessary, however, should be applied for simulations regarding power plant specific constraints (e.g. minimal power, minimal up-/downtime).