Artelys has designed and implemented a market clearing algorithm for frequency response

23 January 2020

The European Power Exchange EPEX SPOT operates a platform to host a new market for frequency responses offers. The first auctions have been held at the end of 2019. This platform uses a new market clearing algorithm tailored to specific market rules, which has been designed and developed by Artelys.

The increasing deployment of renewable electricity in Europe have led TSOs to request higher volumes of electricity reserve products, such as frequency response. In order to stimulate the provision of balancing volume by suppliers, EPEX SPOT created a new platform to hold market auctions for frequency reserve of different types.

Artelys has been commissioned by EPEX SPOT to design and implement the market clearing algorithm with the objective to select the least-cost maximal frequency response volume for TSOs. This new algorithm was designed to handle over 100,000 offers and be flexible enough to easily adapt when new market rules are introduced.

The solution developed by Artelys uses FICO Xpress Optimization Suite to model and solve the different market clearing optimisation problems.

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