A new optimisation algorithm based on OCM and PCM solution through energy reserve

Considerable number of procedures is presented regarding sale and payment structure in power markets. However, the proper analysis of these mechanisms has proved challenging. Offer Cost Minimisation (OCM) procedure was previously proposed for addressing this issue that conducts minimisation of the cost evaluation by locational marginal prices. The Payment Cost minimisation (PCM) structure was proposed recently that carries out direct payment minimisation of the consumer and is more sophisticated than OCM in the aspect of structure, transformation to single-level linearised optimisation problem and computational burden. In this work, a new stochastic search algorithm was proposed for minimisation of the payment via dealing with the joint energy-reserve in the PCM problem which the time limit of 15 min was set to stop the branch and cut model. By application of proposed algorithm to the PCM problem and OCM, 174 s for OCM and 133 s for PCM problems have been obtained. Also, by considering the reserve problem the solution time was about 37 s and 15 min for OCM mechanism and PCM mechanism, respectively. The proposed algorithm is tested over different benchmark function (CEC-2013 testbed) and a real-world engineering problem. Obtained results are compared with conventional model based OCM over different case studies.