Patent ID: 7356536

Claim:
A computer implemented system for optimal pricing of energy and energy reserve in an electricity market of at least one market participant wherein load prediction is performed considering load system requirements, said system comprising: a database; and a processor configured for: determining constraints of said at least one market participant; receiving thirty minute operating reserve energy bids from said market participants; calculating, using mixed integers to represent variables, whether each thirty minute operating reserve energy bid satisfies the relationship: 0 â‰¦p tmor ( i,t )â‰¦min[ramp 30 ( i ), p max ( i,t )âˆ’ SS ( i,t ))]Â·[1 âˆ’Y ( i,t )], where p tmor (i,t) is a power of a thirty minute operating reserve for thirty minute operating reserve energy bid i at time step t, ramp 30 (i) a thirty minute ramp capability for thirty minute operating reserve energy bid i at time step t, p max (i,t) is a maximum power capability for thirty minute operating reserve energy bid i at time step t, SS(i,t) is a self committed and scheduled capacity for thirty minute operating reserve energy bid i at time step t, Y(i,t) is a status binary variable for thirty minute operating reserve energy bid i at time step t; optimizing the dispatch of energy and energy reserve responsive to thirty minute operating reserve energy bids that satisfy said relationship and considering said constraints of said at least one market participant using mixed integer linear programming techniques; and pricing the dispatch of energy and energy reserve based on the results of said optimizing step.