Pricing Short-Circuit Current via a Primal-Dual Formulation for Preserving Integrality Constraints

Synchronous Generators (SGs) currently provide important levels of Short-Circuit Current (SCC), a critical ancillary service that ensures line protections trip during short-circuit faults. Given the ongoing replacement of SGs by power-electronics-based generation, which has a hard limit on current injection, it has become relevant to optimize the procurement of SCC services provided by remaining SGs. Pricing this service is, however, challenging due to the integrality constraints in Unit Commitment (UC). Existing methods, e.g., dispatchable pricing and restricted pricing, attempt to address this issue but exhibit limitations in handling non-convexities, resulting in SCC prices that either fail to cover the operating costs of units or lack interpretability. To overcome these pitfalls, we adopt a primal-dual formulation of the SCC-constrained dispatch that preserves the binary UC for effectively computing shadow prices of SCC services. Using a modified IEEE 30-bus system, the proposed method is compared with the previously developed pricing schemes. It is demonstrated that, under the proposed pricing method, revenue-adequate and explicit service prices can be assigned without the need for uplift payments, an advantage that cannot be achieved by other pricing approaches.