A flexible methodology to obtain a feasible thermal operation in the medium-term for multi-area power systems

Currently, the modeling of electricity markets demands the representation of multi-area power systems with the greatest time detail. Many market players are taking investment positions to diversify the location of their assets. In turn, energy regulators promote the construction of new interconnection facilities. This is the case of the European Union. Nevertheless, these developments take years to be achieved and price spreads between areas will continue appearing. Furthermore, the optimization of the thermal generation is still a crucial problem. The deployment of renewable technologies in mature markets focuses the attention more and more on the proper management of gas-fired power plants, since coal plants are being dismantled, nuclear promotion is often unpopular, hydro reservoirs cannot be enhanced much more and the widespread use of storage batteries has not been accomplished yet. This paper proposes a methodology to obtain a feasible operation of the thermal portfolio belonging to a market player. This method also maximizes profit and requires as inputs the hourly prices and the aggregated production that it is expected for the portfolio along the time span. The new proposal allows the representation of multi-area power markets, as well as the improved utilization of a strategic term which is now related with special extra costs of every thermal unit.