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Model-based Determination of Bidding Zones: An Approach Based on Multiple Scenarios, Optimal Power Flow and Clustering Algorithms

In this paper a model-based determination procedure of bidding zones is described. A DC optimal power flow model provides nodal indicators to specifically designed clustering algorithms. These algorithms identify model-based alternative bidding zone configurations, to be compared with the current one in the framework of a Bidding Zone Review process, in line with the requirements set in the European Commission Regulation 2015/1222 and Regulation 2019/943 of the European Parliament and of the Council. The nodal indicators are evaluated on a set of historical and significant operating scenarios of the Italian transmission network, carefully selected by the Italian Transmission System Operator. The results show the procedure capability to produce insightful results for supporting a bidding zone review process and its advantages with respect to simplified methodologies encountered in the literature.