Dear Prof. Zimmerman, thanks you for your responses.
With respect to counter-example about if the benefit increases or not, I have found that when the sum of the benefits of the load and generator are decreases, increases the congestion rents. Therefore, the total surplus of the system are positives and higher with respect to the total surplus of the system with individually optimization. For this cause, I want to prove analytically that the best solution for a interconnection is the total optimization of all systems, ensuring that the systems does not lost benefits. I appreciate you any ideas about the topic. De: [email protected] [mailto:[email protected]] En nombre de Ray Zimmerman Enviado el: lunes, 10 de octubre de 2011 11:10 Para: MATPOWER discussion forum Asunto: Re: Question 1. The joint optimization should maximize the total surplus, if that is what you mean by "best solution". 2. I do not think this is true. It should be possible to come up with a counter-example. 3. How are you computing congestion rents? Total revenue from loads minus total payout to generators? My interpretation of this number is that it is a measure of the potential for increased benefits that might be realized by enhancing the transmission system (increasing line capacities and/or reducing losses). I'm not an economist, but I believe it is part of the total surplus of the system. -- Ray Zimmerman Senior Research Associate 419A Warren Hall, Cornell University, Ithaca, NY 14853 phone: (607) 255-9645 On Oct 7, 2011, at 3:11 PM, Santiago Chamba wrote: 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.
