  A real-time optimal dispatch method for unbundle electricity markets is
proposed in this paper. With this method, pool energy auction market, ancillary
services market, and bilateral contract market can be coordinated by the ISO
through a balancing market for the purpose of system security. To meet
real-time imbalance and to eliminate transmission congestion, operating
reserves, curtailment of bilateral contracts, and supplemental energy bids in
the real-time balancing market (REM), can all be called upon in light of their
bidding prices. The replacement of the operating reserves used to provide
balancing energy is incorporated into the objective of the real-time optimal
dispatch problem. A modified P-Q decoupled optimal power flow (OPF) is employed
to implement this method. Spot pricing for the real-time dispatch is presented.
The IEEE 30-bus test system is studied to illustrate the proposed framework.
