Combinatorial Reverse Auction to Coordinate Transmission and Generation Assets in Brazil: Conceptual Proposal Based on Integer Programming

In Brazil, reverse auctions are the main mechanism for contracting generation and transmission assets. However, mismatches between their start-up dates have depleted supply on approximately 17,000 GWh. So, we propose a new Combinatorial Reverse Auction format, that jointly auctions’ transmission and generation assets. The conceptual proposal was divided into two phases: descending clock rounds and sealed bid round. Activity rules as eligibility points and preference revealed were implemented to restrict the packages allowed for bidding in each round. The Winner Determination Problem was modeled as an Integer Linear Program adjusted to the Brazilian electric market. Computational experiments will be developed based on real data.