Electricity Markets with Complex Orders: A Review of Theory and Application

This paper provides an overview of the electricity markets that use combined block and hourly orders. As power systems evolve and electricity market reforms progress, there is a growing need for more flexible and diverse bidding mechanisms. One possible way to address this need is to adopt the European model of block orders with complex orders, which can accom-modate various preferences and constraints of market entities. This paper examines the different types of trading products, their features, benefits, and impacts on market behavior and bidding strategies. Finally, through concrete examples, we illustrate the effectiveness and advantages of these trading products, and provide insights for establishing a market system with complex orders.