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Electricity Market (electricity + market)
Kinds of Electricity Market Selected AbstractsQUANTIFYING MARKET POWER IN THE GERMAN WHOLESALE ELECTRICITY MARKET USING A DYNAMIC MULTI-REGIONAL DISPATCH MODEL,THE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 4 2006FELIX MÜSGENS This paper quantifies the degree of market power in the German wholesale electricity market. A dispatch model simulates competitive marginal costs. In addition to common input factors like plant capacities, fuel prices and load structures, the model also incorporates international power exchange and dynamic effects like start-up costs and hydro storage plant dispatch. The simulated prices are subsequently used as a benchmark for observed electricity prices. The analysis reveals significant market power in the German electricity market, mainly exhibited during peak periods. Producer surplus is also increased significantly due to strategic behavior. [source] LIMITS TO COMPETITION AND REGULATION IN PRIVATIZED ELECTRICITY MARKETSANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 4 2009Hulya Dagdeviren ABSTRACT,:,Privatization of electricity has been extensive both in the developed and the developing world. Failures in various areas have led to the emergence of a new consensus which regards competitive pressures and regulation as crucial for utility privatizations to work. This review paper presents a critical evaluation of this newly found wisdom with reference to the developing economies. The experience in the developed world, especially in the USA and the UK, has been used to draw conclusions for the developing economies. Overall, the paper highlights the problems associated with the ,competitive model' both in the developed and developing world and points to the potential instability in private competitive power supply systems. It also examines the degree to which regulation can be a panacea for market failures and structural problems under private provision. [source] Modelling volatility clustering in electricity price return series for forecasting value at riskEUROPEAN TRANSACTIONS ON ELECTRICAL POWER, Issue 1 2009R. G. Karandikar Abstract Modelling of non-stationary time series using regression methodology is challenging. The wavelet transforms can be used to model non-stationary time series having volatility clustering. The traditional risk measure is variance and now a days Value at Risk (VaR) is widely used in finance. In competitive environment, the prices are volatile and price risk forecasting is necessary for the market participants. The forecasting period may be 1 week or higher depending upon the requirement. In this paper, a model is developed for volatility clustering in electricity price return series and its application for forecasting VaR is demonstrated. The first model is using GARCH (1, 1). The VaR of variance rate series, that is worst-case volatility is calculated using variance method using wavelet transform. The model is used to forecast variance rate (volatility) for a sample case of 1-week half-hourly price return series. The second model developed is for forecasting VaR for price return series of 440 days. This model is developed using wavelets via multi-resolution analysis and uses regime-switching technique. The historical data of daily average prices is obtained from 100% pool type New South Wales (NSW), a zonal market of National Electricity Market (NEM), Australia. Copyright © 2007 John Wiley & Sons, Ltd. [source] Consumer Ownership in Liberalized Electricity Markets.ANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 1 2002The Case of Denmark The continuation of consumer ownership has been an important part of the Danish electricity reform from 1999. Consumer ownership refers to either a consumer co-operative or a municipal utility. Contrary to conventional wisdom, consumer ownership can be supported by solid arguments from modern economic theory of organization. These arguments are presented and confronted with both present and future situation in Denmark. The development of the electricity supply industry after the Second World War has emptied consumer ownership of much of its original content. Nowadays, most consumers consider their electric utility as the (monopoly) supplier of a good they demand and not as something they own. Therefore, obligatory consumer ownership as specified in the new Danish Electricity Act of 1999 cannot be relied on to guarantee security of supply and reasonable prices for small consumers [source] Differentiating and Linking Politics and Adjudication,The Example of European Electricity PolicyEUROPEAN LAW JOURNAL, Issue 3 2002Adrienne Héritier The paper analyses how politics and adjudication answer similar questions in the context of policy-making. It contrasts how societal problems are selected, defined, solved and legitimised by both disciplines. We raise these questions in regard to the liberalization of the European Electricity markets. We reconstruct the decision-making process at the political and adjudicative arena taking place in this policy area. By so doing, we elaborate the differences and establish the links between politics and adjudication. We argue that what differentiates these two disciplines constitutes their very links; that is, the adjudicative and political arena are linked precisely because they are different at various level. [source] Economic evaluation of demand-side energy storage systems by using a multi-agent-based electricity marketELECTRICAL ENGINEERING IN JAPAN, Issue 3 2009Ken Furusawa Abstract With the wholesale electric power market opened in April 2005, deregulation of the electric power industry in Japan has faced a new competitive environment. In the new environment, Independent Power Producer (IPP), Power Producer and Supplier (PPS), Load Service Entity (LSE), and electric utility can trade electric energy through both bilateral contracts and single-price auction at the electricity market. In general, the market clearing price (MCP) is largely changed by the amount of total load demand in the market. The influence may cause a price spike, and consequently the volatility of MCP will make LSEs and their customers face a risk of higher revenue and cost. DSM is attractive as a means of load leveling, and has an effect on decreasing MCP at peak load period. Introducing Energy Storage systems (ES) is one DSM in order to change demand profile at the customer side. In the case that customers decrease their own demand due to increased MCP, a bidding strategy of generating companies may be changed. As a result, MCP is changed through such complex mechanism. In this paper the authors evaluate MCP by multi-agent. It is considered that customer-side ES has an effect on MCP fluctuation. Through numerical examples, this paper evaluates the influence on MCP by controlling customer-side ES corresponding to variation of MCP. © 2009 Wiley Periodicals, Inc. Electr Eng Jpn, 167(3): 36,45, 2009; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/eej.20658 [source] A study of economic evaluation of demand-side energy storage system in consideration of market clearing priceELECTRICAL ENGINEERING IN JAPAN, Issue 1 2007Ken Furusawa Abstract In Japan the electricity market will open on April 1, 2004. Electric utility, Power Producer and Supplier (PPS), and Load Service Entity (LSE) will join the electricity market. LSEs purchase electricity based on the Market Clearing Price (:MCP) from the electricity market. LSEs supply electricity to the customers that contracted with the LSEs on a certain electricity price, and one to the customers that introduced Energy Storage System (:ES) on a time-of-use pricing. It is difficult for LSEs to estimate whether they have any incentive to promote customers to introduce ES or not. This paper evaluates the reduction of LSEs' purchasing cost from the electricity market and other LSEs' purchasing cost by introducing ES to customers. It is clarified which kind of customers has the effect of decreasing LSEs' purchasing cost and how much MCP of the whole power system the demand-side energy storage systems change. Through numerical examples, this paper evaluates the possibility of giving the cost merit to both customers with energy storage systems and LSE by using real data for a year's worth of MCP. © 2006 Wiley Periodicals, Inc. Electr Eng Jpn, 158(1): 22,35, 2007; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/eej.20447 [source] Wind power policy options in finland , analysis of energy policy actors' viewsENVIRONMENTAL POLICY AND GOVERNANCE, Issue 4 2006Vilja Varho Abstract Governments around the world are responding to the environmental problems caused by energy production by promoting wind power and other renewable forms of energy. Country specific political and ideological issues affect the choice of policy instruments. For example, although Finland and Sweden are already part of the same Nordic electricity market, they use different renewable energy policy instruments. The views about suitable policy instruments also vary within the Finnish energy sector. This paper is based on analysis of interviews with 25 energy sector actors that affect wind power policy in Finland. They used a number of process-oriented and value-based criteria to evaluate policies. Emphasis on deregulated market conditions was found to be strong, and to limit methods that are considered appropriate for supporting wind power. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [source] Short-term scheduling of a wind generation and hydrogen storage in the electricity marketEUROPEAN TRANSACTIONS ON ELECTRICAL POWER, Issue 5 2010G. Tina Abstract Intermittent renewable energy sources (RES) are promising to be the future of electricity generation. In particular wind generation, owing to its stochastic behaviour, has to be carefully managed. Its lack of sufficient predictability decreases the energy value in the current framework of electrical markets, therefore, beyond a certain threshold; this kind of generation into the electrical system represents a problem for the transmission system operator (TSO) during its despatching service. The coupling of wind energy conversion system (WECS) with a storage medium (i.e. hydrogen) could improve the programmability of such generation plants in electrical markets. In this paper, an economical optimization tool has been developed in order to find the short-term scheduling so as to maximize the economic revenues in the day-ahead electricity market of a storage plant coupled with a wind farm. This tool needs as input the forecasts of both wind generation power and market prices, obtained with the adoption of pre-processing input data algorithm based on different methods that involve both statistical and probabilistic approaches. Copyright © 2009 John Wiley & Sons, Ltd. [source] Bidding behaviour and electricity market simulationEUROPEAN TRANSACTIONS ON ELECTRICAL POWER, Issue 4 2007T. Chandarasupsang Abstract To trade effectively and profitably in new electricity market structures, participants need to identify how best to use information available to them. In many cases only incomplete information will be available for short-term planning, trading and decision-making. This paper simulates a group of generators who adapt bidding behaviours in different segments of liberalised electricity markets based on historic market information, observed strategies and their view of other market participants. Results show that even in the incomplete information case efficient bidding strategy for market participants can be identified. Specifically, this paper presents some key findings from an active electricity market and utilises them within an electricity market simulation. The benefit of market simulation for participants is identified and reported. Copyright © 2007 John Wiley & Sons, Ltd. [source] A new recursive neural network algorithm to forecast electricity price for PJM day-ahead marketINTERNATIONAL JOURNAL OF ENERGY RESEARCH, Issue 6 2010Paras Mandal Abstract This paper evaluates the usefulness of publicly available electricity market information in predicting the hourly prices in the PJM day-ahead electricity market using recursive neural network (RNN) technique, which is based on similar days (SD) approach. RNN is a multi-step approach based on one output node, which uses the previous prediction as input for the subsequent forecasts. Comparison of forecasting performance of the proposed RNN model is done with respect to SD method and other literatures. To evaluate the accuracy of the proposed RNN approach in forecasting short-term electricity prices, different criteria are used. Mean absolute percentage error, mean absolute error and forecast mean square error (FMSE) of reasonably small values were obtained for the PJM data, which has correlation coefficient of determination (R2) of 0.7758 between load and electricity price. Error variance, one of the important performance criteria, is also calculated in order to measure robustness of the proposed RNN model. The numerical results obtained through the simulation to forecast next 24 and 72,h electricity prices show that the forecasts generated by the proposed RNN model are significantly accurate and efficient, which confirm that the proposed algorithm performs well for short-term price forecasting. Copyright © 2009 John Wiley & Sons, Ltd. [source] The lignite electricity-generating sector in Greece: Current status and future prospectsINTERNATIONAL JOURNAL OF ENERGY RESEARCH, Issue 9 2004N. Koukouzas Abstract Lignite plays an important role in Greece's energy sector as it satisfies over 70% of country's needs in electric power. The extraction of lignite takes place mainly in three regions of Greece, namely Ptolemais-Amyndeon, Megalopolis and Florina. The annual production of lignite is around 60 million tons, out of which 48 million tons derive from the coal fields of northern Greece (Ptolemais-Amyndeon and Florina). Almost the entire lignite production is consumed for electricity generation, while small amounts of lignite are used for briquettes and other applications. The Greek coal-fired power plants, which are about 4500 MW, use conventional technology and they are old (an average of 30 years). In the coming years new coal fields will be exploited in Florina,another 2.5 million tons of coal,in order to satisfy the currently under construction 365 MW plant located at Meliti, Florina, Northern Greece. Even though the lignite reserves are widespread in Greece and other areas such as Elassona and Drama could possibly host power plants, it is expected that the Florina power plant will be the last coal-fired plant to be build in the country. Lignite has to compete with natural gas,the construction of the main gas pipeline network has been completed,imported oil and renewable energy sources. The new EU regulations on power plant emissions raise obstacles for the firing of lignite, although it is low in sulphur. It must be shown that lignite produces low cost electricity in a environmentally friendly manner. The utilization of fly ash and land reclamation can improve the situation in lignite mining. In particular, specific attention was paid to further research and potential use of fly ash in road construction, the production of bricks and concrete, and the production of zeolites from lignitic fly ash. The use of clean coal technologies in power plants can solve many emission problems. Specific measures to increase the efficiency of lignite-fired power units might include: identification of the loss sources of every unit, improvement of the cold end of the steam turbines, optimization of the beater wheel mills operation, and the combination of natural gas-fired turbines with the existing boilers. The liberalization of the electricity market needs to be considered seriously from the lignite industry, since the potential electricity producers can freely choose from all kinds of fuels, such as imported coal, oil, gas and renewables. However, Greek lignite meets the requirements for the security of supply, as indicated in the EU's Green Paper. It needs only to be competitive in the new energy sector by improving mining and combustion conditions. Further research on these topics, through the European Commission's ECSC and Framework Programmes, as well as the national programmes, is required. Copyright © 2004 John Wiley & Sons, Ltd. [source] Ranking factors of an investment in cogeneration: Sensitivity analysis ranking the technical and economical factorsINTERNATIONAL JOURNAL OF ENERGY RESEARCH, Issue 3 2001Gunnel Sundberg Abstract A deregulation of the electricity market in Europe will result in increased competition among the power-producing companies. They will therefore carefully estimate the financial risk in an investment in new power-producing capability. One part of the risk assessment is to perform a sensitivity analysis. This paper presents a sensitivity analysis using factorial design, resulting in an assessment of the most important technical and economical factors affecting an investment in a gas turbine combined cycle and a steam cycle fired by woodchips. The study is performed using a simulation model that optimizes the operation of existing power plants and potential new investments to fulfil the desired heat demand. The local utility system analysed is a Swedish district heating system with 655 GWh y,1 heat demand. The conclusion is that to understand which of the technical and economical factors affect the investment, it is not sufficient to investigate the parameters of the studied plant, but also the parameters related to the competing plants. Both the individual effects of the factors and the effect of their interaction should be investigated. For the energy system studied the price of natural gas, price of woodchips and investment cost have the major influence on the profitability of the investment. Copyright © 2001 John Wiley & Sons, Ltd. [source] Genetic fuzzy systems to evolve interaction strategies in multiagent systemsINTERNATIONAL JOURNAL OF INTELLIGENT SYSTEMS, Issue 9 2007Igor Walter This article suggests an evolutionary approach to designing interaction strategies for multiagent systems, focusing on strategies modeled as fuzzy rule-based systems. The aim is to learn models evolving database and rule bases to improve agent performance when playing in a competitive environment. In competitive situations, data for learning and tuning are rare, and rule bases must jointly evolve with the databases. We introduce an evolutionary algorithm whose operators use variable length chromosomes, a hierarchical relationship among individuals through fitness, and a scheme that successively explores and exploits the search space along generations. Evolution of interaction strategies uncovers unknown and unexpected agent behaviors and allows a richer analysis of negotiation mechanisms and their role as a coordination protocol. An application concerning an electricity market illustrates the effectiveness of the approach. © 2007 Wiley Periodicals, Inc. Int J Int Syst 22: 971,991, 2007. [source] Maximum Likelihood Estimation of VARMA Models Using a State-Space EM AlgorithmJOURNAL OF TIME SERIES ANALYSIS, Issue 5 2007Konstantinos Metaxoglou Abstract., We introduce a state-space representation for vector autoregressive moving-average models that enables maximum likelihood estimation using the EM algorithm. We obtain closed-form expressions for both the E- and M-steps; the former requires the Kalman filter and a fixed-interval smoother, and the latter requires least squares-type regression. We show via simulations that our algorithm converges reliably to the maximum, whereas gradient-based methods often fail because of the highly nonlinear nature of the likelihood function. Moreover, our algorithm converges in a smaller number of function evaluations than commonly used direct-search routines. Overall, our approach achieves its largest performance gains when applied to models of high dimension. We illustrate our technique by estimating a high-dimensional vector moving-average model for an efficiency test of California's wholesale electricity market. [source] The demand for electricity in PakistanOPEC ENERGY REVIEW, Issue 1 2009Muhammad Arshad Khan This paper examines the patterns of electricity demand in Pakistan over the period 1970,2006 using autoregressive distributed lag technique to cointegration. Long run and short-run price and income elasticities are examined for the national level and for the three major consumer's categories,households, industry and agriculture. The overall results suggest that income and price elasticities possess expected signs at aggregate and disaggregate levels in the long run as well as in the short run. The error correction terms possess expected negative signs and are highly significant with reasonable magnitudes. Furthermore, the estimated long run and short-run electricity demand functions remains stable over the sample period. The results thus convey important information to the agents operating in the electricity market regarding the pricing policies and helps in planning the future strategy of electricity demand management. [source] The Emergence of Structural Faults on the Supply Side in Deregulated ,Energy Only' Electricity MarketsTHE AUSTRALIAN ECONOMIC REVIEW, Issue 2 2006Paul Simshauser This article examines the effect of plant entry and exit in a deregulated ,energy only' electricity market. A partial equilibrium framework is presented that determines the optimal portfolio of base, intermediate and peaking plant for a given electricity load curve. An optimal result for Queensland is compared against the actual plant stock. Analysis of the portfolio indicates that deregulation is failing a key objective, namely enhancing dynamic efficiency, because too much base plant has been delivered. The research presents scenarios of structural corrections, using the theory of the generalised war of attrition to develop the cases. Results from simulation experiments are clear,consumers will secure lower electricity prices in the short run. But oversupply of base plant may suppress prices to such an extent that they fail to signal timely entry of peaking plant,the consequence of this failure being eventual price shocks and, potentially, load shedding. [source] Electricity Forward Prices: A High-Frequency Empirical AnalysisTHE JOURNAL OF FINANCE, Issue 4 2004Francis A. Longstaff ABSTRACT We conduct an empirical analysis of forward prices in the PJM electricity market using a high-frequency data set of hourly spot and day-ahead forward prices. We find that there are significant risk premia in electricity forward prices. These premia vary systematically throughout the day and are directly related to economic risk factors, such as the volatility of unexpected changes in demand, spot prices, and total revenues. These results support the hypothesis that electricity forward prices in the Pennsylvania, New Jersey, and Maryland market are determined rationally by risk-averse economic agents. [source] One-day forward premiums and the impact of virtual bidding on the New York wholesale electricity market using hourly dataTHE JOURNAL OF FUTURES MARKETS, Issue 11 2007Lester Hadsell This study examines one-day forward premiums at the hourly level on the New York independent systems operator wholesale electricity market for the period 2001,2005. Examining two representative zones, the authors show that premiums vary by hour of day, day of week, and month. We report differences in the level and volatility of the premium across zones. We measure the impact of opening the market to outsiders through the introduction of virtual bidding. Results indicate that virtual bidding is associated with lower premiums in off-peak or near-off-peak hours; it is associated with higher premiums during peak hours. © 2007 Wiley Periodicals, Inc. Jrl Fut Mark 27: 1107,1125, 2007 [source] DO OLIGOPOLISTS POLLUTE LESS?THE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 4 2007EVIDENCE FROM A RESTRUCTURED ELECTRICITY MARKET Electricity restructuring has created the opportunity for producers to exercise market power. Oligopolists increase price by distorting output decisions, causing cross-firm production inefficiencies. This study estimates the environmental implications of production inefficiencies attributed to market power in the Pennsylvania, New Jersey, and Maryland electricity market. Air pollution fell substantially during 1999, the year in which both electricity restructuring and new environmental regulation took effect. I find that strategic firms reduced their emissions by approximately 20% relative to other firms and their own historic emissions. Next, I compare observed behavior with estimates of production, and therefore emissions, in a competitive market. According to a model of competitive behavior, changing costs explain approximately two-thirds of the observed pollution reductions. The remaining third can be attributed to firms exercising market power. [source] BIASES IN STATIC OLIGOPOLY MODELS?THE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 4 2006EVIDENCE FROM THE CALIFORNIA ELECTRICITY MARKET Estimating market power is often complicated by a lack of reliable marginal cost data. A number of empirical studies identify industry competition and marginal cost levels by estimating the firms' first order condition within a conjectural variations framework. Few studies, however, have analyzed the accuracy of this technique. In this paper, we use direct measures of marginal cost for the California electricity market to measure the extent to which estimated mark-ups and marginal costs are biased. Our results suggest that the technique poorly estimates mark-ups and the sensitivity of marginal cost to cost shifters. [source] QUANTIFYING MARKET POWER IN THE GERMAN WHOLESALE ELECTRICITY MARKET USING A DYNAMIC MULTI-REGIONAL DISPATCH MODEL,THE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 4 2006FELIX MÜSGENS This paper quantifies the degree of market power in the German wholesale electricity market. A dispatch model simulates competitive marginal costs. In addition to common input factors like plant capacities, fuel prices and load structures, the model also incorporates international power exchange and dynamic effects like start-up costs and hydro storage plant dispatch. The simulated prices are subsequently used as a benchmark for observed electricity prices. The analysis reveals significant market power in the German electricity market, mainly exhibited during peak periods. Producer surplus is also increased significantly due to strategic behavior. [source] THE WESTERN AUSTRALIAN POWER DILEMMA,AUSTRALIAN ECONOMIC PAPERS, Issue 4 2009PAUL SIMSHAUSER From 1984 gas-fired power generation had been gradually increasing its share of the electricity market in Western Australia (WA) starting at 1 per cent and rising to about 50 per cent by 2008. Had it continued on this trajectory, the WA power system would have made great advances in terms of cost and environmental efficiencies given the looming commencement of the Carbon Pollution Reduction Scheme in Australia from 2011. However, more recently the cost of natural gas has increased from $3/GJ to $7/GJ following the sudden collapse of the East Spar gas field in the North West Shelf. In this article, we analyse the impact of the gas price increase and demonstrate that despite being the most environmentally efficient conventional technology, natural gas combined cycle plant has been squeezed out of the market which in turn will increase forward electricity price risks to WA consumers through greater exposure to CO2 pricing in the long run. [source] PROMOTING INNOVATION IN THE ELECTRICITY INDUSTRYECONOMIC AFFAIRS, Issue 2 2010L. Lynne Kiesling Smart metering can bring significant benefits to electricity markets by allowing customers to reduce demand or increase supply when generation capacity is temporarily scarce. To reap the full efficiency and environmental benefits of this technology, regulators must allow price volatility and free entry into the market. The efficiency gains are enormous as both demand and supply will be affected by both temporary and longer-lasting price changes. Experiments have shown the value of this approach. [source] Incorporating power system security into market-clearing of day-ahead joint energy and reserves auctionsEUROPEAN TRANSACTIONS ON ELECTRICAL POWER, Issue 2 2010J. Aghaei Abstract This paper is intended to introduce a technique for incorporating system security into the clearing of day-ahead joint electricity markets, with particular emphasis on the voltage stability. A Multiobjective Mathematical Programming (MMP) formulation is implemented for provision of ancillary services (Automatic Generation Control or AGC, spinning, non-spinning, and operating reserves) as well as energy in simultaneous auctions by pool-based aggregated market scheme. In the proposed market-clearing structure, the security problem, as an important responsibility of ISO, is addressed and a nonlinear model is formulated and used as the extra objective functions of the optimization problem. Thus, in the MMP formulation of the market-clearing process, the objective functions (including augmented generation offer cost, overload index, voltage drop index, and loading margin) are optimized while meeting AC power flow constraints, system reserve requirements, and lost opportunity cost (LOC) considerations. The IEEE 24-bus Reliability Test System (RTS 24-bus) is used to demonstrate the performance of the proposed method. Copyright © 2008 John Wiley & Sons, Ltd. [source] Efficiency of the German electricity wholesale marketEUROPEAN TRANSACTIONS ON ELECTRICAL POWER, Issue 4 2009Christian Growitsch Abstract One of the major challenges of liberalising European electricity markets is to create competitive and efficient power trading markets. In this paper, we assess the overall efficiency of the German electricity wholesale market using cointegration analysis and error correction modelling. Applying these techniques allows us to evaluate the wholesale market efficiency in terms of price adjustments and the rapidity towards the adjustment in the price discovery and adjustment process. We show that the wholesale market seems to be inefficient and not well functioning. The inability of European Energy Exchange spot market in providing an efficient price reference to the power market suggest that the power exchange still lacks liquidity. Second, our results indicate that bilateral contracts keep the wholesale electricity prices intact with the EEX prices and also stabilise the volatility in the German wholesale market. Also, the econometric results suggest that the existence of the OTC market along with power exchange is creating a competitive effect in the wholesale market in Germany. Copyright © 2009 John Wiley & Sons, Ltd. [source] A new algorithm for reactive power management and pricing in an open access environmentEUROPEAN TRANSACTIONS ON ELECTRICAL POWER, Issue 2 2008G. Reza Yousefi Abstract In deregulated electricity markets, reactive power is one of the ancillary services that is provided by the Independent System Operator (ISO). In this paper we propose a new algorithm to ,tune' reactive power resources with the objectives of minimizing active power losses and optimizing system voltage profile and stability. In our solution, we assume that reactive power resources are either owned by or are under long-term contracts with the ISO. The optimization problem is solved as an Extended Multi-objective Optimal Power Flow (EMOPF) problem using Lexico Graphic Method (LGM). Thereafter, using the concept of Fair Resource Allocation (FRA), the cost of reactive power is allocated to existing transactions. The application of the algorithm to a test system is also presented. Copyright © 2007 John Wiley & Sons, Ltd. [source] Bidding behaviour and electricity market simulationEUROPEAN TRANSACTIONS ON ELECTRICAL POWER, Issue 4 2007T. Chandarasupsang Abstract To trade effectively and profitably in new electricity market structures, participants need to identify how best to use information available to them. In many cases only incomplete information will be available for short-term planning, trading and decision-making. This paper simulates a group of generators who adapt bidding behaviours in different segments of liberalised electricity markets based on historic market information, observed strategies and their view of other market participants. Results show that even in the incomplete information case efficient bidding strategy for market participants can be identified. Specifically, this paper presents some key findings from an active electricity market and utilises them within an electricity market simulation. The benefit of market simulation for participants is identified and reported. Copyright © 2007 John Wiley & Sons, Ltd. [source] Advanced and intelligent technologies for reliable operation of power systems and electricity marketsIEEJ TRANSACTIONS ON ELECTRICAL AND ELECTRONIC ENGINEERING, Issue 5 2008Ryuichi Yokoyama Senior Member Abstract Deregulation of power industries is still progressing in many countries, aiming at reduction of the electricity price, diversity of customer diverse choices, services and promotion of new business and keeping supply reliability. Many countries are testing this notion in anticipation of lower power prices through open competition. In such a competitive situation, it is necessary for suppliers to take on the responsibility of keeping supply reliability at the load end in order to prevent outages, for instance, independent power producers (IPP) placing distributed generations (DGs) close to the load or conventional utilities utilizing advanced and intelligent system operation/control technologies that are costly. Usually, customers pay one price for power that is good enough for ordinary use, therefore not necessarily highly consistent in quality of voltage, current, frequency or reliability. However, if customers desire better quality power, additional fees are added according to the particular characteristics desired, thus customers are supplied with this type of better power that they choose. Under such a worldwide new trend in power systems and markets, this article is edited for the purpose of introducing the most advanced technologies and the newest issues related to reliable and stable operations of power markets and systems in the competitive environment. © 2008 Institute of Electrical Engineers of Japan. Published by John Wiley & Sons, Inc. [source] Investment risk allocation in decentralised electricity markets.OPEC ENERGY REVIEW, Issue 2 2008The need of long-term contracts, vertical integration None of the far-reaching experiments in electricity industry liberalisation was able to ensure the timely and optimal capacity mix development. The theoretical market model features market failures due to the specific volatility of prices, and the difficulty of creating complete markets for hedging. In this paper, we focused on a specific failure, i.e. the impossibility of allocating the various risks borne by the producer onto suppliers and consumers in order to allow capacity development. Promotion of short-term competition by mandating vertical de-integration tends to distort investments in generation by impeding efficient risk allocation. Following Joskow's (2006) line, we developed an empirical analysis of how to secure investments in generation through vertical arrangements between decentralised generators and large purchasers, suppliers or consumers. Empirical observations as risk analysis shows that adopting such arrangements may prove necessary. Various types of long-term contracts between generators and suppliers (fixed-quantity and fixed-price contract, indexed price contract, tolling contract, financial option) appear to offer effective solutions for risk allocation. Vertical integration appears to be another effective way to allocate risk. But it remains an important complementary condition to efficient risk allocation, i.e. that retail competition is sticky or legally limited in order to have a large part of risks borne by consumers on the different market segments. [source] | ||||||||||||||||||||||||||||