Impact of uncertainty and elastic response of demand in short term marginal prices

In the scope of the implementation of market mechanisms to remunerate marginal costs of generation producers and network services, this work discusses a new approach to obtain short-term marginal prices (STMP), taking into account the effect of load uncertainties and elastic response of aggregate demand in each node of the system. The optimization problem is formulated from regulatory point of view minimizing total social cost for all participants. The proposed methodology uses fuzzy sets to represent price and load uncertainties. Demand curve is derived from nonlinear benefit function of customer. Revenue requirements of transmission services deserve particular attention and network congestion impact is discussed. The model has been tested in two test cases and compared with the results from a classical fuzzy optimal power flow (FOPF) with inelastic loads