Transmission capacity management in a continuous auction market environment

An efficient electricity market has to manage in a proper way the transmission capacity available to the market player. The problem can be a complex one, especially, if rules of exchange of electricity have to be kept simple and easy to implement. In this paper the authors propose a method of transmission capacity allocation that can be introduced in a continuous auction mechanism. The method is developed with the intent to have a consistent evaluation of the transmission capacity and a consequent economic signal to the players avoiding the calculation difficulties and the complexity of a nodal price method. Using the proposed method, the authors developed a software platform and utilized it for simulation proposes.