Patent ID: 7353201

Claim:
A computer implemented system for optimal energy and energy reserve dispatching in an electricity market of at least one market participant, said system comprising: a database; and a processor configured for: inputting constraints of said at least one market participant; clearing energy and energy reserve bids; calculating a minimum sum of total market costs using mixed integers to represent variables in the relationship; min ⁢ ⁢ C tot = ∑ T t - 1 ⁢ { ∑ N l = 1 ⁢ [ c start ⁡ ( i , t ) · Z ⁡ ( i , t ) + c nold ⁡ ( i , t ) · Y ⁡ ( i , t ) + C en ⁡ ( i , t ) + c reg ⁡ ( i , t ) + ∑ j ∈ com ⁢ c j ⁡ ( i , t ) } ] wherein minC tot is a minimum sum of total market costs, t is a time step of a time period T, i is an energy bid of N energy bids, c start (i,t) is a start up cost for an energy generating bid i at time step t, Z(i,t) is a start up binary variable for the energy generating bid i at the time step t, c nold (i,t) is a no-load cost segment for the energy generating bid i at time step t, Y(i,t) is a status binary variable for the energy generating bid i at the time t, c en (i,t) is a cost of the commodity energy for the energy generating bid i at time step t, c reg (i,t) is a cost of the commodity regulating reserve energy for the energy generating bid i at time step t,j is a bid curve identifier for a number of bid curves com, and c j (i,t) is a bid curve for the energy generating bid i at time step t; and pricing the dispatch of energy and energy reserve responsive to the minimum sum of total market costs considering said constraints of said at least one market participant using mixed integer linear programming techniques.