Optimization Model for Combined Capacity, Electricity Energy and Ancillary Service Markets Considering Renewable Energy

The electricity market typically comprises several interrelated submarkets, including the electricity energy market, the ancillary service market, and the capacity market. However, most prior studies have focused on only one or two of these markets in isolation. This paper proposes a coordinated operational mechanism for the three markets, incorporating multi-energy participation, and develops a joint clearing model that integrates the capacity, energy, and ancillary service markets. By adjusting the capacity curve based on net energy and ancillary service revenues (NET E&AS), the model influences the generation mix and facilitates coordinated market clearing across all three submarkets. A case study using the IEEE 30-bus system is presented to demonstrate the effectiveness of the proposed approach.