Market-to-Market Day-Ahead Scheduling Considering Information Privacy

In the operation of electricity markets, market-to market (M2M) coordination is used to increase the reliability of the interconnected power grid and maintain the consistency of the price across the integrated markets. However, the implementation of M2M coordination is facing challenges due to increasing size and complexity of the modern electricity markets, the information privacy and communication issues among them. To address these concerns, this paper presents a decentralized decision-making approach for the day-ahead scheduling of multi-interconnected markets while respecting the information privacy between markets and requiring minimum data exchange among them. In the proposed approach, each market solves its own day-ahead scheduling problem, and sends its equivalent (or processed) boundary information to the neighboring markets. The modified IEEE 14-bus and IEEE 118-bus testing systems are used in this paper to show the effectiveness of the proposed approach.