A Joint Simulation Model for Multi-Level Electricity Markets Considering Both Medium- and Long-Term Trading and Spot Trading

Medium- and long-term trading and spot trading are two essential parts of electricity market. The interplay between these market segments is essential: medium- and long-term trading manage risks while spot trading provides real-time price signals that enhance resource allocation. This paper proposes a multistage joint simulation model that integrates both trading mechanisms and exams their combined effects on market operations. Mathematical models for bilateral trading, matching trading, and listing trading are developed and analyzed. A spot trading clearing model is also constructed. The expression of comprehensive price of whole electricity market is formulated. With IEEE 14-bus test system, the study evaluates how the interaction between medium- and long-term trading and spot trading influences overall market prices, the effectiveness of the proposed model is illustrated.