Patent ID: 7343361

Claim:
Computer readable medium containing program instructions recorded therein, which, when executed by a computer, causes the computer to implement a method for for optimal dispatch of energy generation and energy load in an energy imbalance market of an energy distribution system separate from a bilateral energy trading market and a dedicated regulation function of the energy distribution system, the energy distribution system including an energy distribution region subdivided into a plurality of different control areas including imbalance market participants, said method comprising: receiving from a plurality of imbalance market participants, including energy generation participants and energy consuming load participants in an energy distribution region, energy supply and energy demand bids for imbalance energy in an energy imbalance market; determining optimal balancing energy prices for each imbalance participant, the optimal prices for balancing generation and load imbalances responsive to a minimum of the sum of bid costs for the imbalance participants and for imbalance market resource types, subject to line loss constraints, wherein determining the minimum of the sum of the bid costs is based on the minimizing relationship: min ⁢ { ∑ stp ⁢ ⁢ ∑ m ⁢ ⁢ p ⁢ ⁢ [ BidCost ⁡ ( BidMW ) - MCP · ( 1 - LosFac ) · BidMW ] } + MCP · imbreq 5 ⁢ min ARTO , wherein stp is an identifier for an imbalance market resource, mp is unique identifier for each imbalance market participant, BidMW is a balancing energy amount, BidCost (BidMW) is a bid cost at a BidMW point, MCP is a market clearing price, LosFac is a loss sensitivity factor, and imbreq 5 min ARTO is a total regional transmission organization 5 minute imbalance requirement; and generating balancing dispatch instructions corresponding to the determined optimal balancing energy prices of energy generation and energy load for each imbalance market participant for use in controlling their respective energy generation and energy load to remedy energy generation and energy load imbalances in the imbalance market other than the use of a bilateral energy trading market and a dedicated regulation function of the energy distribution system.