Journal of Engineering, Project, and Production Management, 2026, 16(5), 2025-368
A Hybrid ADMM-IPM Framework for Secure and Efficient Joint Clearing of Electricity and Ancillary Service Markets
1 Senior
Engineer, State Grid Shandong Electric Power Company, Jinan, 250013,
China, E-mail: zhxyou_sd@163.com
2 Director, State Grid Shandong
Electric Power Research Institute, Jinan, 250003, China, E-mail:
Liuyuanlong@sd.sgcc.com.cm
3 Senior Engineer, State Grid
Shandong Electric Power Research Institute, Jinan, 250003, China,
E-mail: Maqiang@sd.sgcc.com.cn
4 Engineer, State Grid Shandong
Electric Power Research Institute, Jinan, 250003, China, E-mail:
lis0903@163.com
5 Engineer, State Grid Shandong
Electric Power Company, Jinan, 250013, China, E-mail: ccliusdu@126.com
6 Engineer, Beijing TsIntergy
Technology Co., Ltd, Beijing, 102200, China, E-mail: yaojing_91@163.com
(corresponding author).
Project Management
Received December 30, 2025; revised March 1, 2026; accepted April 7, 2026
Available online June 17, 2026
Abstract: This study addresses the low computational efficiency and safety verification challenges in joint clearing of electricity and ancillary service markets (e.g., frequency regulation and reserve) caused by deep market coupling and multi-participant participation. A hybrid solution framework combining the Alternating Direction Method of Multipliers (ADMM) and Interior Point Method (IPM) is proposed to efficiently solve high-dimensional non-convex optimization problems through a hierarchical “external decomposition internal refinement” strategy. At the outer coordination level, ADMM exploits problem separability to enable distributed decomposition across multiple trading products and cross-regional markets, significantly reducing problem scale via parallel computation. The Interior Point Method (IPM) is employed to accurately solve nonlinear Optimal Power Flow (OPF) sub-problems with Alternating Current (AC) power flow constraints, ensuring high solution precision and feasibility. Furthermore, safety constraint checking and feedback correction are embedded to form a closed-loop “optimization-verification-correction” mechanism, enabling full-timescale power flow security regulation. Experiments show that this method, under conditions of high volatility (±15% load variation) and high renewable energy penetration (50%), can complete market clearing in only 46 iterations (average 150 seconds), with a total electricity purchase cost of US$5.6 million. Furthermore, it achieves a safe reschedule within 9.3 seconds after a sudden fault, significantly outperforming existing methods. This method significantly improves the clearing efficiency and reliability of high-proportion renewable energy power markets, providing a practical optimization tool for actual dispatch operations.
Keywords: Electricity and ancillary services, alternating direction method of multipliers, interior-point method, multiple subjects, hybrid solution.
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Citation: Zhang, X., Liu, Y., Ma, Q., Li, S., Liu, C., and Yao, J. (2026). A Hybrid ADMM-IPM Framework for Secure and Efficient Joint Clearing of Electricity and Ancillary Service Markets. Journal of Engineering, Project, and Production Management, 16(5), 2025-368.
