IE-OPIM Joint Graduate Seminar
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IE-OPIM Joint Graduate Seminar: Dr. Kürşad Derinkuyu (University of Turkish Aeronautical Association)

 

“On the Determination of European Day Ahead Electricity Prices: The Turkish Case”

Date: Wednesday, March 16, 2016
Time: 13:40 – 14:30
Location: FENS G032

Abstract: Day ahead electricity prices in European markets are determined by double-blind auctions.  That is, both buyers and sellers may place anonymous orders with different prices and quantities.  The Market Operator has to solve an optimization problem within an hour to clear the auction and determine the prices for the Day Ahead Market (DAM) which are used as a reference point for the other electricity contracts.  The Market Operator has to end the algorithm with a feasible solution if the algorithm could not find the optimal solution within the time limit. In this work, we develop an optimization model to solve the problem with day ahead electricity prices.  We present a mixed integer formulation and provide methods based on aggregation techniques and variable elimination to solve the problem within the limits of the practical requirements. Using real market data, we show that, aggregation reduces the problem size approximately 60% whereas variable elimination provides another 30% reduction.  We also propose an IP-based large neighborhood search as well as Tabu Search and Genetic Algorithm to obtain an initial solution.  Empirical evidences coming from the Turkish Day Ahead Market data indicate the heuristics have a substantial solution quality and the overall suggestions deliver remarkable solution time improvements.  This is the first study in terms of formulating fully covered DAM problem, developing new approaches to solve it within the time limits of the market, and using real data.

Biography: Kürşad Derinkuyu started at Ankara Science High School in 1994 and received his B.S. degree in Industrial Engineering from Bilkent University in 2002. He received his M.Sc. degree (ranked as 1st) from same department. Dr. Derinkuyu continued his graduate studies at Lehigh University and The University of Texas at Austin, and received his second M.Sc. degree (Management Science) in 2006 and Ph.D. degree (Operations Research and Industrial Engineering) in 2011 with 4.0 CGPAs.  After graduation, he worked on Hacettepe University and he is currently working in Logistics Management Department of University of Turkish Aeronautical Association (UTAA) and advisor to CEO at EPİAŞ (Energy Markets Operation Company).

Dr. Derinkuyu developed software on target production planning tool of supply chain management system in AMD (Advance Micro Devices) and designed decision support systems for logistics planning of commodity transportation, yard-block-train relations, and railway maintenance in BNSF Railway. Furthermore, he developed forecasting and time series models for Enexis (Holland Electricity) and Aselsan (Turkish Defense) Companies. He is currently designing decision support systems and developing software for EPİAŞ about Electricity Markets under the National Code Principles.

He is also Head of Energy Markets Research Center in UTAA and Director of Energy Technologies and Sustainability Research Center in TENVA (Turkish Energy Foundation). These research centers concentrate on energy markets and politics by aiming to include opinions of universities, public and private sectors.  Some of his current works are related to Intermittent Effect of Renewable Energy and Natural Gas Market Design.

Dr. Derinkuyu’s studies concentrate on network design, scheduling, logistics, linear / quadratic robust optimization and mathematical programming in theory, and railways, energy markets and renewable energy in practice.