in: Sustainability-Cases and Studies in Using Operations Research and Management Science Methods, Fausto Pedro García Márquez,Benjamin Lev, Editor, Springer, London/Berlin , Basel, pp.199-216, 2023
This chapter is focused on the price determination problem of the Turkish day-ahead electricity market. Management science techniques are used to analyze the problem. An optimization objective function is defined and explained. Once the problem formulation is stated, and the price is compared to the market clearing price, there is an acceptance guarantee for the affordable block, flexible, and, specifically, paradoxical bids (offers). The objective function of the economic model has been determined by maximizing the total market surplus as a requirement of a market that operates efficiently. The goal is to find the best solution using the algorithms and procedures that have been developed. The problem of price determination in the day-ahead electricity markets includes many research subjects and development areas. With the ongoing researches in this field, it will be useful to academically examine both the suggestions from the sector and the applications in the developed markets. Thereby, some of the applications and simulations can be put into practice.