Coordinated Transaction Scheduling in Multi-Area Power Systems with Strategic Participants

In this paper we focus on the tie-line scheduling problem in multi-area power systems. We discuss two scheduling schemes: the theoretical method of tie optimization (TO) and the state of the art-coordinated transaction scheduling (CTS). Through game-theoretic analysis we compare the outcome of CTS with that of TO and show that the TO result can be achieved provided sufficient liquidity in the market. When CTS market participants learn to bid/offer over time, simulation results confirm that increased market liquidity leads to more efficient tie-line schedules.