The Comparison of Multiple Clustering Techniques to be Used in Transition to Zonal Electricity Market: A Case Study of Turkey

Abstract

Different pricing strategies can be used in the power market to boost competition. Different market structures are used by various electrical systems. Market structures that are frequently employed include uniform marginal pricing, zonal marginal pricing, and nodal marginal pricing. The establishment of price zones is essential for markets that want to switch from a uniform pricing structure to a more competitive zonal pricing structure in order to build a competitive market that produces reliable price signals. In this paper, eight different clustering methods were investigated in detection pricing zones in the Turkish electricity market. These methods are Affinity Propagation, Agglomerative, Birch, DBSCAN, OPTICS, Kmeans, MeanShift, and MiniBatch Kmeans clustering.