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Hourly Pricing and Day-Ahead Dispatch Setting in Brazil: The DESSEM Model

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Power generation planning and price setting in hydrothermal systems is a complex task, usually performed by a chain of optimization models, ranging from long to short-term time horizons. In Brazil, the weekly hydrothermal dispatch and spot pricing has been officially set since 2002 with two optimization models: NEWAVE and DECOMP. This work briefly presents the main features of a third model in this chain (DESSEM) which has been validated since 2017 by the Brazilian ISO and the Market Operator to determine the hourly dispatch and energy prices starting in 2020/2021. This model considers a very comprehensive set of thermal unit commitment constraints, nonconvex security constraints for the electrical network and a very detailed operation of the hydro plants. We apply CPLEX solver to the resulting MILP problem, with smart ad-hoc iterative procedures to reduce the computational burden. Results are presented for the large scale Brazilian system.

Author(s):

Tiago Norbiato dos Santos    
CEPEL - Brazilian Electric Energy Research Center
Brazil

Andre Luiz Diniz    
CEPEL - Brazilian Electric Energy Research Center
Brazil

Carlos Henrique Saboia    
CEPEL - Brazilian Electric Energy Research Center
Brazil

Renato Neves Cabral    
CEPEL - Brazilian Electric Energy Research Center
Brazil

Luis Fernando Cerqueira    
CEPEL - Brazilian Electric Energy Research Center
Brazil

 

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