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A mixed integer linear programming (MILP) approach for the joint simulation of electric control reserve and electricity wholesale markets is described. This generation dispatch model extends an existing integrated grid and electricity market model covering the Continental European electric power system. By explicitly modelling the markets for primary and secondary control reserve, the model can reproduce the decisions of generating unit operators on which markets to get involved. Besides, the introduction of integrality conditions allows considering start-up costs and the calculus of generating units to pass through economically unattractive periods with low or even negative prices in order to avoid another start-up. Finally, the MILP approach allows to consider the fact that primary and secondary control reserves provision usually requires operation of the respective generating unit and to fully include storages into the optimization problem. In this paper, the generation dispatch model is described in detail, key assumptions are presented and the implementation status is explained.

A MILP Approach for the Joint Simulation of Electric Control Reserve and Wholesale Markets