A Thorough Comparison Among Various Mathematical Approaches to Compute PUN in Italy

Abstract

Today, the coupling of Day-Ahead Market in Europe is extensively studied. One of the challenges of the market clearing model is the National Uniform Price used in Italy and known as PUN (“Prezzo Unico Nazionale”) as it introduces nonconvexity in the model resulting in high computation time. In literature, various proposals are made to efficiently find the PUN; among them, the most promising are the iterative procedure and complementarity theory. The goal of the paper is to re-formulate these approaches and compare them to identify their advantages and disadvantages. Tests are made on the real data obtained from the official websites for 10 <sup xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">th</sup> -15 <sup xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">th</sup> of March, 2016.