Dear Friends ,
I have some questions related to the benefit maximization in a regional market. I hope that you are interested in this topic. I have run two system individually and have calculated the load benefits, generation benefits and congestion rent for each system. Later, I run the two systems together and calculated the benefits load, benefits generation and the new congestion rent. When, I run the systems together, the total cost are minimized compare to the sum of the two cost functions for separate. Then, I calculated the benefit for each system, for example, for a exporter system are decreases the load benefit, increases the generation benefits because to the price increase. The sum of these quantities is minor than the sum of the load benefits plus generation benefits without interconection. But, increases the congestion rent inside of the system. My question are: 1. The best solution for exchanges between systems is to perform a joint optimization?. 2. The joint optimization ensures that the benefits of each system is equal to or greater than the benefit of the system whit individually optimized. How can I prove it analytically? 3. What is the economic interpretation of the increases congestion rent? This amount is a benefit for the system? Thanks for your help.
