Optimization techniques for Available Transfer Capability (ATC) and market calculations

Sung Kwan Joo, Chen Ching Liu, Yangfang Shen, Zelda B. Zabinsky, Jacques Lawarree

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)


The recent movement towards an open, competitive market environment introduced new optimization problems such as market clearing mechanism, bidding decision and Available Transfer Capability (ATC) calculation. These optimization problems are characterized by the complexity of power systems and the uncertainties in the electricity market. Accurate evaluation of the transfer capability of a transmission system is required to maximize the utilization of the existing transmission systems in a competitive market environment. The transfer capability of the transmission networks can be limited by various system constraints such as thermal, voltage and stability limits. The ability to incorporate such limits into the optimization problem is a challenge in the ATC calculation from an engineering point of view. In the competitive market environment, a power supplier needs to find an optimal strategy that maximizes its own profits under various uncertainties such as electricity prices and load. On the other hand, an efficient market clearing mechanism is needed to increase the social welfare, i.e. the sum of the consumers' and producers' surplus. The need to maximize the social welfare subject to system operational constraints is also a major challenge from a societal point of view. This paper presents new optimization techniques motivated by the competitive electricity market environment. Numerical simulation results are presented to demonstrate the performance of the proposed optimization techniques.

Original languageEnglish
Pages (from-to)321-337
Number of pages17
JournalIMA Journal of Management Mathematics
Issue number4
Publication statusPublished - 2004 Oct

Bibliographical note

Funding Information:
This research is partially supported by the Advanced Power Technologies (APT) Centre at the University of Washington and the U.S. National Science Foundation Under Grant ‘Transmission Expansion in an Open Access Environment: Reliability and Economics (ECS 0217701)’. The APT Centre is funded by AREVA T&D, BPA, CESI, LGIS, Mitsubishi Electric, PJM and RTE.


  • Available transfer capability
  • Improving hit-and-run
  • Market optimization
  • Markov decision process
  • Power system economics

ASJC Scopus subject areas

  • Management Information Systems
  • Modelling and Simulation
  • Economics, Econometrics and Finance(all)
  • Strategy and Management
  • Management Science and Operations Research
  • Applied Mathematics


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