An optimization problem in the electricity market

New types of optimization problems are faced by the generating companies that operate in the Italian electricity market. The characteristics of these problems depend on the various market structures. In the framework of the recently-settled Italian electricity market, one of these new problems is the transition from hourly energy programs, defined by the market, to more detailed power generation dispatches, defined for intervals of fifteen minutes. Such a more detailed plan is needed on the one hand by the national system operator (GRTN, Gestore della Rete di Trasmissione Nazionale) for the assessment of power system stability and security, and on the other by the power plant operators for its implementation. The transition procedure should respect the hourly energy constraints and take into account the main operating constraints of the generating units. The paper presents possible solutions of the problem through linear optimization models and reports computational results on real-world instances.