New nuclear power plants and the electricity market competition

International Nuclear Information System (INIS)

Ruska, M.; Koreneff, G.

2009-11-01

The study assesses the effects the different nuclear power plant projects would have on crossownership, market concentration and market power in electricity market. The analyses are given both for Finnish and Nordic power markets. The authors feel that the electricity market should primarily be viewed as a common Nordic market in the future. During 2000 to 2008 the hours when Finland was an own price area ranged from 1 % to 29 % as annual averages. In the future it will be more and more seldom that Finland will become an own deficit price area, because the cross-border transmission capacity to Sweden will increase as will Finnish electricity production capacity. In addition, the extension of Nord Pool to the Baltic will increase the size of the market. The ownership of power plants is typically organized through power share companies in Finland. Two of the three nuclear power plant projects are joint ventures with several electricity producers and consumers. The current ownership relations and what effects the new projects might have on them were analyzed in this study. The competitiveness of different electricity production forms in the future was assessed using different market scenarios based on varying demand expectations. The capacity structure was assumed to stay quite unchanged, where the biggest change is expected to come from new renewable power capacity due to EU targets. Conventional condensing power production will decrease and Nordic electricity exports will increase in the future. The market concentration would increase in Finland with new nuclear plants, the most if Fortum were the builder. Vattenfall has a decidedly larger electricity production in the Nordic countries than Fortum, and Vattenfall's capacity would be unchanged by the new planned nuclear plants. The nuclear power plant projects do not therefore increase market concentration significantly on a Nordic level. Nuclear power is not used for day or hour regulation in Finland, which means

Competition policies on the electricity markets

International Nuclear Information System (INIS)

Dubois, U.

2008-01-01

This article puts forward a critical analysis of European competition instruments and practices in terms of market power on the electricity wholesale markets. Due to the speck nature of electrical activities, competition policies come up against difficulties of market power identification at first, since there is no model for detecting perfectly the potential or real exertion of market power in this sector. What is more, since competition authorities rely on specific intervention methods, their ability to limit the exertion of market power is relatively low. For a large number of their interventions involves controlling concentrations. In the light of this double phenomenon, this article discusses some recent developments of European competition policies on the electricity wholesale markets. The sector inquiry of 2007 seems to mark the start of a new competition policy practice in the electricity sector. The initiative and decision-making power now seem to be nesting mainly at a European level where action is not only to be found in terms of controlling mergers and acquisitions, but also stretches to involve an in-depth evaluation of the way the different markets work. This action is manifested in decisions to investigate some companies as well as legislative proposals in the framework of the third package. Thus we are moving towards a greater monitoring of electricity markets using more formal supervision instruments and on a more continuous basis. (author)

Virtual Power Plants as a Model for the Competitiveness of Small Manufacturers and Operators of Virtual Power Plants in Markets of Electricity and Gas

International Nuclear Information System (INIS)

Galic, T.; Tomsic, Z.

2012-01-01

Production of electricity from renewable energy sources and energy-efficient power sources to be connected to the electricity distribution network is still not competitive with electricity production from conventional sources of electricity. A powerful technological development of distributed energy sources and technologies for electricity storage has reduced their production costs, production costs of electricity from distributed energy sources, the costs of simultaneous production of electricity and thermal energy from cogeneration distributed energy sources and thus has facilitated their increased use in practice. It also allows them to interconnect systems such as virtual power plants in order to achieve full economic feasibility of their use. Current electricity and gas customers, now also in the role of small power producers, interconnected by virtual power plants operators, in addition to buying electricity and gas on retail markets for electricity and gas, will be able to sell electricity and new energy services also on wholesale electricity markets. Development and application of new distributed technologies will enable the production of new quantities of electricity which will increase the competitiveness of electricity producers, competitiveness of electricity suppliers of end-customers and elasticity of supply and demand in the electricity market. These processes will also increase the efficiency of the entire systems of electricity supply and of the gas supply systems.(author)

The power of competition

International Nuclear Information System (INIS)

Fuqua, G.L.; Pratt, J.H.; Elliot, J.

1995-01-01

The change-over from regulated monopolies to a non-regulated competitive market in the electric utility industry was discussed in terms of marketing and survival strategies for utilities it the newly competitive marketplace. The impact of low natural gas prices was prominently discussed as a danger to hydroelectricity generators because high efficiency turbine generators that are now available. Surplus power capacity in both the Canadian and US markets were discussed. The effects of independent power producers selling electricity wholesale to private utilities was also debated on account of its potential to change the role of the electric utility. The situation of the Bonneville Power Association (BPA), a self-financed government agency, as owner of 15 000 miles of transmission grid that is not allowed to own generation plants, was described. Strategies developed by BPA in an effort to adapt to the competitive market were described and were successful

The Power Trading Agent Competition

NARCIS (Netherlands)

Ketter, W.; Collins, J.; Reddy, P.; Flath, C.; De Weerdt, M.M.

2011-01-01

This is the specification for the Power Trading Agent Competition for 2012 (Power TAC 2012). Power TAC is a competitive simulation that models a “liberalized” retail electrical energy market, where competing business entities or “brokers” offer energy services to customers through tariff contracts,

The Power Trading Agent Competition

NARCIS (Netherlands)

W. Ketter (Wolfgang); J. Collins (John); P. Reddy (Prashant); C. Flath (Christoph); M.M. de Weerdt (Mathijs)

2011-01-01

textabstractThis is the specification for the Power Trading Agent Competition for 2012 (Power TAC 2012). Power TAC is a competitive simulation that models a “liberalized” retail electrical energy market, where competing business entities or “brokers” offer energy services to customers through tariff

Alberta's electricity policy framework : competitive, reliable, sustainable

International Nuclear Information System (INIS)

2005-01-01

This paper described public policies in Alberta that are implemented to create an electric power industry that is competitive, reliable and sustainable. The success of Alberta's competitive electric market framework can be attributed to new investment in the industry along with new players participating in the electricity market. The Alberta Department of Energy is committed to a competitive wholesale market model and to competitively-priced electricity. The Alberta Energy and Utilities Board supports the development of Alberta's vast resource base and facilitates power generation development and support through transmission development and an interconnected transmission system. A wholesale market Policy Task Force was established in 2005 to review the progress in Alberta's electric market design and its competitive retail market. This paper outlines a policy framework which addresses design of the regulated rate option post July 1, 2006; short-term adequacy; and long-term adequacy. Other inter-related market issues were also discussed, such as operating reserves market, transmission services, interties, demand response, balancing pool assets, credit, market power mitigation, and wind generation. It is expected that the recommendations in this paper will be implemented as quickly as possible following amendments to regulations or ISO rules. tabs., figs.

Private capital access: a new competition dynamic on electric power generation

International Nuclear Information System (INIS)

Luz, A.D. da; Ribeiro, H.M.

1990-01-01

This paper intents to elaborate an interpretation on the market structure changes of the electric power generation sector based on Competition Pattern concept. It proposes to demonstrate that the recent institutional reformulations are not causes, but results from the economic movements. Finally a prospective scenery and the State Company perspectives on energy generation are anticipated. (author)

Electric industry governance. Reconciling competitive power markets and the physics of complex transmission interconnections

Energy Technology Data Exchange (ETDEWEB)

Stalon, Charles G. [Energy Regulation, Cape Girardeau, MO (United States)

1997-03-01

Creating efficient, competitive power markets in an electric industry composed of interconnected control areas requires the existence of some agency with authority to define, impose and enforce rules for the operation of all control areas so interconnected. It has been noted that `the pursuit of self-interest, unrestrained by suitable institutions, carries no guarantee of anything except chaos`. In no part of the economy is this lesson more relevant than in the North American electric industry. As the industry evolves from one dominated by vertically-integrated utilities into one with competitive power markets and unregulated generators, the system of coordinating institutions that has worked acceptably well to restrain and guide self-interested decision makers of economically regulated firms must now be reconstructed to restrain and guide self-interested decision makers of unregulated generating companies (gencos), power merchants and brokers

Nuclear power in the competitive environment

International Nuclear Information System (INIS)

Schlissel, D.A.

1995-01-01

Nuclear power was originally promoted as being able to produce electricity that would be open-quotes too cheap to meter.close quotes However, large construction cost overruns and rapidly rising operating costs caused many nuclear power plants instead to be very expensive sources of electricity. As a result, many nuclear utilities will face increasing cost pressures in the future competitive environment from lower-cost producers. In fact, the threat to nuclear utilities is so severe that many industry analysts are projecting that more that $70 billion of the utilities' remaining investments in nuclear plants will be open-quotes stranded,close quotes i.e., unrecoverable in the competitive environment. Others in the industry have speculated that many of the 150 major U.S. electric utilities, a large number of which are nuclear, could be swept away by competition, leaving fewer than fifty utilities. This paper will examine how utilities are attempting to improve the cost competitiveness of operating today's nuclear power plants. It will also identify some of the potential consequences of competition for nuclear power and the regulatory role of the U.S. Nuclear Regulatory Commission (NRC). Finally, this paper will address how the changing power markets will affect the prospects for the next generation of nuclear power plants

The 2018 Power Trading Agent Competition

NARCIS (Netherlands)

W. Ketter (Wolfgang); J. Collins (John); M.M. de Weerdt (Mathijs)

2017-01-01

markdownabstractThis is the specification for the Power Trading Agent Competition for 2018 (Power TAC 2018). Power TAC is a competitive simulation that models a “liberalized” retail electrical energy market, where competing business entities or “brokers” offer energy services to customers through

The 2013 Power Trading Agent Competition

NARCIS (Netherlands)

W. Ketter (Wolfgang); J. Collins (John); P. Reddy (Prashant); M.M. de Weerdt (Mathijs)

2013-01-01

textabstractThis is the specification for the Power Trading Agent Competition for 2013 (Power TAC 2013). Power TAC is a competitive simulation that models a “liberalized” retail electrical energy market, where competing business entities or “brokers” offer energy services to customers through tariff

The 2016 Power Trading Agent Competition

NARCIS (Netherlands)

W. Ketter (Wolfgang); J. Collins (John); M.M. de Weerdt (Mathijs)

2016-01-01

markdownabstractThis is the specification for the Power Trading Agent Competition for 2016 (Power TAC 2016). Power TAC is a competitive simulation that models a “liberalized” retail electrical energy market, where competing business entities or “brokers” offer energy services to customers through

The 2017 Power Trading Agent Competition

NARCIS (Netherlands)

W. Ketter (Wolfgang); J. Collins (John); M.M. de Weerdt (Mathijs)

2017-01-01

markdownabstractThis is the specification for the Power Trading Agent Competition for 2017 (Power TAC 2017). Power TAC is a competitive simulation that models a “liberalized” retail electrical energy market, where competing business entities or “brokers” offer energy services to customers through

The 2012 Power Trading Agent Competition

NARCIS (Netherlands)

W. Ketter (Wolfgang); J. Collins (John); P. Reddy (Prashant); M.M. de Weerdt (Mathijs)

2012-01-01

textabstractThis is the specification for the Power Trading Agent Competition for 2012 (Power TAC 2012). Power TAC is a competitive simulation that models a “liberalized” retail electrical energy market, where competing business entities or “brokers” offer energy services to customers through tariff

The 2015 Power Trading Agent Competition

NARCIS (Netherlands)

W. Ketter (Wolfgang); J. Collins (John); P. Reddy (Prashant); M.M. de Weerdt (Mathijs)

2015-01-01

markdownabstractThis is the specification for the Power Trading Agent Competition for 2015 (Power TAC 2015). Power TAC is a competitive simulation that models a “liberalized” retail electrical energy market, where competing business entities or “brokers” offer energy services to customers through

The 2014 Power Trading Agent Competition

NARCIS (Netherlands)

W. Ketter (Wolfgang); J. Collins (John); P. Reddy (Prashant); M.M. de Weerdt (Mathijs)

2014-01-01

textabstractThis is the specification for the Power Trading Agent Competition for 2014 (Power TAC 2014). Power TAC is a competitive simulation that models a “liberalized” retail electrical energy market, where competing business entities or “brokers” offer energy services to customers through tariff

Secure provision of reactive power ancillary services in competitive electricity markets

Science.gov (United States)

El-Samahy, Ismael

The research work presented in this thesis discusses various complex issues associated with reactive power management and pricing in the context of new operating paradigms in deregulated power systems, proposing appropriate policy solutions. An integrated two-level framework for reactive power management is set forth, which is both suitable for a competitive market and ensures a secure and reliable operation of the associated power system. The framework is generic in nature and can be adopted for any electricity market structure. The proposed hierarchical reactive power market structure comprises two stages: procurement of reactive power resources on a seasonal basis, and real-time reactive power dispatch. The main objective of the proposed framework is to provide appropriate reactive power support from service providers at least cost, while ensuring a secure operation of the power system. The proposed procurement procedure is based on a two-step optimization model. First, the marginal benefits of reactive power supply from each provider, with respect to system security, are obtained by solving a loadability-maximization problem subject to transmission security constraints imposed by voltage and thermal limits. Second, the selected set of generators is determined by solving an optimal power flow (OPF)-based auction. This auction maximizes a societal advantage function comprising generators' offers and their corresponding marginal benefits with respect to system security, and considering all transmission system constraints. The proposed procedure yields the selected set of generators and zonal price components, which would form the basis for seasonal contracts between the system operator and the selected reactive power service providers. The main objective of the proposed reactive power dispatch model is to minimize the total payment burden on the Independent System Operator (ISO), which is associated with reactive power dispatch. The real power generation is

Forces that direct the competition in the electric power industry in the new institutional scenery

International Nuclear Information System (INIS)

Ribeiro Filho, Ary Pinto; Moraes, Walter Fernando Araujo de

1999-01-01

This work identifies the probable strategic characteristics of the interconnected North-Northeast Brazilian electricity industry, after the current restructuring and privatization process has been implemented. It is a 15.0 thousand MW generation industry supplying more than 33.5 million consumers. The normative scenery for analysis of the electricity industry takes into consideration the premises that the government establishes the vertical separation of generation, transmission, distribution and retailing, and introduces the regulation to a competitive industrial structure in generation and retailing. It is assumed that free access to transmit and distribute electricity and broad choices for consumers are the main features for competition in both generation and retailing. The essence of formulating strategy is to relate a company with its environment, considering the industrial structure. Porter's five forces model for industry environment and competition, emphasizing the role of the government in such regulated industry, is the basic theoretical reference. The main strategic characteristics related to entry barriers, rivalry intensity, supplier power, customer power and substitute products are analyzed. (author)

Analysis of electricity price in Danish competitive electricity market

DEFF Research Database (Denmark)

Hu, Weihao; Chen, Zhe; Bak-Jensen, Birgitte

2012-01-01

electricity markets in some ways, is chosen as the studied power system. 10 year actual data from the Danish competitive electricity market are collected and analyzed. The relationship among the electricity price (both the spot price and the regulation price), the consumption and the wind power generation...... in an electricity market is investigated in this paper. The spot price and the regulation price generally decrease when the wind power penetration in the power system increases or the consumption of the power system decreases. The statistical characteristics of the spot price and the regulation price for different...... consumption periods and wind power penetration are analyzed. Simulation results show that the findings of this paper are useful for wind power generation companies to make the optimal bidding strategy so that the imbalance cost of trading wind power on the electricity market could be reduced....

Electricity competition and clean air

International Nuclear Information System (INIS)

Gibbons, J.; Bjorkquist, S.

1998-04-01

The government of Ontario plans to establish a competitive market for the generation and sale of electricity by the year 2000, at which time Ontario Hydro will lose its monopoly. The government's rationale for moving to a competitive electricity market and the details of why this move could lead to a significant increase in air pollution was discussed. An overview of the health and environmental effects of electricity related air pollution was presented and the current national and provincial air quality objectives were outlined. The government of Ontario has promised that in implementing a competitive electricity market it will ensure that the province's environmental protection record is maintained and improved. It was suggested that in order to fulfill this commitment, new environmental regulations should be established to ensure that Ontario's total electricity-related emissions will decline when competition begins. Currently, air pollution from coal-fired power generating stations causes some of Ontario's most challenging health and environmental problems. Coal-fired generation stations are also major contributors to the build-up of greenhouse gases in the atmosphere. 74 refs., 2 tabs., 2 figs

Carbon Pricing, Power Markets and the Competitiveness of Nuclear Power

International Nuclear Information System (INIS)

2011-01-01

This study assesses the competitiveness of nuclear power against coal- and gas-fired power generation in liberalized electricity markets with either CO 2 trading or carbon taxes. It uses daily price data for electricity, gas, coal and carbon from 2005 to 2010, which encompasses the first years of the European Emissions Trading System (EU ETS), the world's foremost carbon trading framework. The study shows that even with modest carbon pricing, competition for new investment in electricity markets will take place between nuclear energy and gas-fired power generation, with coal-fired power struggling to be profitable. The data and analyses contained in this study provide a robust framework for assessing cost and investment issues in liberalized electricity markets with carbon pricing. (authors)

Competition in the electric utility sector?

International Nuclear Information System (INIS)

Olsen, O.J.; Fristrup, P.; Munksgaard, J.; Skytte, K.

2000-01-01

The book analyses some important problems for the liberaliaction of the electricity market in Denmark and its neighbouring countries. Will the competition and its potential for a more cost-effective electric supply be prevented by the electric companies' many possibilities to utilize market power? Can competition be combined with ambitious energy policy aims about reducing the environmental impacts of the electric supply? Does the Danish tradition for consumer ownership constitute an important supplement to the protection of the smaller consumers in a world of international competition? The intention with the book is not to take concrete position to the many topical problems in the Danish political discussion of restructurns of the electric sector, but to give a theoretical analysis to understand and analyse the development. On this basis the conclusion is, that the competition will work even in combination with ambitious environmental aims. (EHS)

Liberation of electric power and nuclear power generation

International Nuclear Information System (INIS)

Yajima, Masayuki

2000-01-01

In Japan, as the Rule on Electric Business was revised after an interval of 35 years in 1995, and a competitive bid on new electric source was adopted after 1996 fiscal year, investigation on further competition introduction to electric power market was begun by establishment of the Basic Group of the Electric Business Council in 1997. By a report proposed on January, 1999 by the Group, the Rule was revised again on March, 1999 to start a partial liberation or retail of the electric power from March, 2000. From a viewpoint of energy security and for solution of global environmental problem in Japan it has been decided to positively promote nuclear power in future. Therefore, it is necessary to investigate how the competition introduction affects to development of nuclear power generation and what is a market liberation model capable of harmonizing with the development on liberation of electric power market. Here was elucidated on effect of the introduction on previous and future nuclear power generation, after introducing new aspects of nuclear power problems and investigating characteristic points and investment risks specific to the nuclear power generation. And, by investigating some possibilities to development of nuclear power generation under liberation models of each market, an implication was shown on how to be future liberation on electric power market in Japan. (G.K.)

Alberta's new competitive electricity system

International Nuclear Information System (INIS)

Hancher, L.

1996-01-01

The shape, speed and direction of further reforms in Alberta's electric power industry were forecast, following the introduction of a competitive framework for the industry, the first province to do so in Canada, effective January 1996. This study reviews the previously existing system ( a mix of investor-owned and municipally-owned utilities), as well as the proposed new structure as laid out in the new Electric Utilities Act, based on the three principles of unbundling, a competitive power pool and open system access transmission. The paper also reviewed some of the major issues that will have to be faced in the future, such as how to deal with market power and possible collusion between the generators to hold prices down, a problem that has been the well-known failing of the U.K. pool mechanism

New competition hits the U.S. electric industry

International Nuclear Information System (INIS)

Hunter, M.

1993-01-01

Three case studies of competition in the United States electric industry are described which illustrate some of the most striking characteristics of the new competitive situation: utilities foraging in other service areas for long-term customers, customers playing one service-area's pricing against another to obtain better terms, and new generating entities being created with the option of seeking mandated transmission access. The trends illustrated by these studies indicate a move away from a regulated monopoly setting toward a market in which the price of bulk electricity is driven down toward the long-run marginal cost of the service. In New England, non-utility generation in 1992 accounted for 17% of electricity sales, up from essentially zero in 1980. Although increasing competition among electric utilities could lower electric power prices and improve industrial competitiveness, there are several concerns which may signify unpleasant outcomes for electric utilities. These concerns include inefficient investment, in which local utility grids are bypassed in favor of other generating units whose competitive advantage may be the result of arbitrary cost-shifting; the exit of large power users placing more of a fixed-cost burden on the remaining customers of a utility, resulting in a vicious spiral of more defections; and insecurities in purchasing power from a new supplier who may not be subject to the same legal obligations as a local utility. Recommendations are made for accommodating more competition without causing adverse effects, including proper pricing of transmission, helping utilities compete on generation, and avoiding non-electric mandates for utilities. 9 refs

The retail market for electric power. Competition and consumer analysis; Denmark; Detailmarkedet for elektricitet. Konkurrence- og forbrugeranalyse

Energy Technology Data Exchange (ETDEWEB)

2011-12-15

The Danish Competition and Consumer Authority has examined the market for electricity to consumers. It is a market that has great importance for the Danish consumers, and it is a market where competition could make a difference for consumers, businesses and the settlement of the Danish climate objectives. An average Danish household spends over DKK 7,000 a year on electricity. Average household expenditures for electricity will probably increase with the electric cars and electric-powered heat pumps will constitute a larger share of the Danish electricity consumption in the future. Simultaneously, the electricity market is difficult to understand for consumers, and there is generally a weak market competition. The analyses in this report show that there is a large untapped potential for economic gains through innovation, increased competition and a more efficient use of resources in the electricity sector. A realization of the potential for economic gains can be beneficial to consumers, businesses and environment. If the potential for economic gains is to be realized, it is necessary to change the regulation of the market. (LN)

Power generation planning: a survey from monopoly to competition

International Nuclear Information System (INIS)

Kagiannas, A.G.; Askounis, D.T.; Psarras, J.

2004-01-01

During the last two decades electric power generation industry in many countries and regions around the world has undergone a significant transformation from being a centrally coordinated monopoly to a deregulated liberalized market. In the majority of those countries, competition has been introduced through the adoption of a competitive wholesale electricity spot market. Short-term efficiency of power generators under competitive environment has attracted considerable effort from researchers, while long-term investment performance has received less attention. In this context, the paper aims to serve as a comprehensive review basis for generation planning methods applied in a competitive electric power generation market. The traditional modeling techniques developed for generation expansion planning under monopoly are initially presented in an effort to assess the evolution of generation planning according to the evolution of the structure of the electric power market. (author)

Imported mineral coal: competitiveness for electric power generation in northeast of Brazil

International Nuclear Information System (INIS)

Codeceira Neto, A.; Ribeiro Filho, A.P.R.; Silva, S.P.R. da

1993-01-01

With the hydroelectric potential exhaustion of northeast and with the increase of costs to the use of hydroelectric uses available in Brazil, the thermoelectric generation will be able to become a competitive solution to attend the market of electric power. This work has as purpose describe the options of imported coal use to Brazilian northeast its technological aspects, the environmental question, and the preliminary studies of localization and the costs associated on implantation of coal thermoelectric power plants. 7 refs, 3 figs, 6 tabs

Advanced design nuclear power plants: Competitive, economical electricity. An analysis of the cost of electricity from coal, gas and nuclear power plants

International Nuclear Information System (INIS)

1992-06-01

This report presents an updated analysis of the projected cost of electricity from new baseload power plants beginning operation around the year 2000. Included in the study are: (1) advanced-design, standardized nuclear power plants; (2) low emissions coal-fired power plants; (3) gasified coal-fired power plants; and (4) natural gas-fired power plants. This analysis shows that electricity from advanced-design, standardized nuclear power plants will be economically competitive with all other baseload electric generating system alternatives. This does not mean that any one source of electric power is always preferable to another. Rather, what this analysis indicates is that, as utilities and others begin planning for future baseload power plants, advanced-design nuclear plants should be considered an economically viable option to be included in their detailed studies of alternatives. Even with aggressive and successful conservation, efficiency and demand-side management programs, some new baseload electric supply will be needed during the 1990s and into the future. The baseload generating plants required in the 1990s are currently being designed and constructed. For those required shortly after 2000, the planning and alternatives assessment process must start now. It takes up to ten years to plan, design, license and construct a new coal-fired or nuclear fueled baseload electric generating plant and about six years for a natural gas-fired plant. This study indicates that for 600-megawatt blocks of capacity, advanced-design nuclear plants could supply electricity at an average of 4.5 cents per kilowatt-hour versus 4.8 cents per kilowatt-hour for an advanced pulverized-coal plant, 5.0 cents per kilowatt-hour for a gasified-coal combined cycle plant, and 4.3 cents per kilowatt-hour for a gas-fired combined cycle combustion turbine plant

Carbon pricing and the competitiveness of nuclear power

International Nuclear Information System (INIS)

Keppler, J.H.; Marcantonini, C.

2011-01-01

A recent NEA study entitled Carbon Pricing, Power Markets and the Competitiveness of Nuclear Energy assesses the competitiveness of nuclear power against coal- and gas-fired power generation in liberalised electricity markets with either CO 2 trading or carbon taxes. It uses daily price data for electricity, gas, coal and carbon from 2005 to 2010, which encompasses the first years of the European Emissions Trading System (EU ETS), the world's foremost carbon trading framework. The study shows that even with modest carbon pricing, competition for new investment in electricity markets will take place between nuclear energy and gas-fired power generation, with coal-fired power struggling to be profitable. The data and analyses contained in the study provide a robust framework for assessing cost and investment issues in liberalised electricity markets with carbon pricing, even in the post-Fukushima context. A summary of the publication main elements is provided in this paper

GasFair and Power '99 and the Ontario Competitive Power Conference: proceedings of the 8. annual natural gas and electricity market conference

International Nuclear Information System (INIS)

1999-01-01

The 47 presentations at Enerdata's 1999 annual conference and trade show were divided between the GasFair and Power '99 Natural Gas and Electricity Market Conference, and the Ontario Competitive Power Conference. The four major sessions of GasFair and Power '99 included the: (1) gas track, (2) power track, (3) gas and power, and (4) forums and workshops. In general, the papers reviewed the recent activities in the natural gas and electric power industry in North America. The presentations highlighted the recent changes that are occurring as a result of deregulation and new environmental policies. The North American electric power and natural gas industry are moving towards competition. Most market participants will benefit from this change because it creates a more level playing field. Several papers also discussed issues regarding the long-term outlook for new Canadian gas supplies to eastern and midwest markets. Some of the other topics discussed included issues regarding the impact of basis tradin g, tools of the energy marketer, and the advantages of pipeline planning. The challenges facing Ontario Hydro to diversify their existing power generation and to use natural gas for power generation in order to meet energy demand was also discussed. tabs., figs

Competition Between Different Sources of Electricity

International Nuclear Information System (INIS)

Cintra do Prado, L.

1966-01-01

To persons interested in nuclear energy questions, and especially administrators in the private or public sector, one of the most important questions is the competitive status of nuclear electricity in relation to electricity supplied from other sources. In this connection ''to compete'' means to produce at an equivalent or lower cost. Nuclear plants will be particularly attractive, and even preferable, when they can supply power at costs lower than conventional sources, e.g. water and fossil fuels. In many European countries and in the United States, the competitiveness of nuclear power is generally considered purely in comparison with thermal plants operating on coal or mineral oil, since such plants are predominant in those countries. This is not the case in Brazil and other countries where the bulk of the electricity produced comes from hydroelectric plants

Basic strategies in the electric power industry in the new competitive environment

International Nuclear Information System (INIS)

Ribeiro Filho, Ary Pinto; Moraes, Walter Fernando Araujo de

1999-01-01

This work identifies the probable strategic characteristics of the interconnected North-Northeast Brazilian electricity industry, after the current restructuring and privatization process has been implemented. It is a 15.0 thousand MW generation industry supplying more than 33.5 million consumers. The normative scenery for analysis of the electricity industry takes into consideration the premises that the government establishes the vertical separation of generation, transmission, distribution and retailing, and introduces the regulation to a competitive industrial structure in generation and retailing. It is assumed that free access to transmit and distribute electricity and broad choices for consumers are the main features for competition in both generation and retailing. The essence of formulating strategy is to relate a company with its environment, considering the industrial structure. The probable generic strategies and industrial trends are presented, and considerations are made concerned with the future expansion capacity. Finally, in the new industrial structure which will settle after the deregulation and privatization, the main strategic issues of the companies will likely focus on: profitability, cost control, managerial competence, consumer behavior, and new technologies, in special the ones related to modern thermal power plants. (author)

GasFair and Power '99 and the Ontario Competitive Power Conference: proceedings of the 8. annual natural gas and electricity market conference

Energy Technology Data Exchange (ETDEWEB)

NONE

1999-07-01

The 47 presentations at Enerdata's 1999 annual conference and trade show were divided between the GasFair and Power '99 Natural Gas and Electricity Market Conference, and the Ontario Competitive Power Conference. The four major sessions of GasFair and Power '99 included the: (1) gas track, (2) power track, (3) gas and power, and (4) forums and workshops. In general, the papers reviewed the recent activities in the natural gas and electric power industry in North America. The presentations highlighted the recent changes that are occurring as a result of deregulation and new environmental policies. The North American electric power and natural gas industry are moving towards competition. Most market participants will benefit from this change because it creates a more level playing field. Several papers also discussed issues regarding the long-term outlook for new Canadian gas supplies to eastern and midwest markets. Some of the other topics discussed included issues regarding the impact of basis trading, tools of the energy marketer, and the advantages of pipeline planning. The challenges facing Ontario Hydro to diversify their existing power generation and to use natural gas for power generation in order to meet energy demand was also discussed. tabs., figs.

Ontario electricity rates and industrial competitiveness

International Nuclear Information System (INIS)

2006-01-01

Industrial electricity prices in Ontario rose significantly after the opening of the competitive Ontario electricity market in 2002, thereby widening the gap between industrial electricity prices in Ontario and those in other Canadian provinces. Navigant Consulting Ltd. conducted this study at the request of the Association of Major Power Consumers in Ontario (AMPCO) to research and compare current and historical electricity prices in Ontario and other jurisdictions in North America. The study provided an independent analysis of how industrial electricity prices in Ontario compare to those in other jurisdiction in which AMPCO members operate. It also formed the basis for comparing the impacts of electricity policy on the economic competitiveness of major power consumers in Ontario. The relative electricity intensity in the United States, Ontario and other Canadian provinces was reviewed for specific industries, including forest products, steel manufacturing, petroleum refining, chemical manufacturing and cement manufacturing. Publicly available aggregate data from Statistics Canada and the United States Bureau of the Census was then used to compare average electricity prices for industrial customers in Ontario. The data confirmed that Ontario has experienced a decline in its competitive price advantage in industrial electricity. Delivered industrial electricity prices in Ontario have increased by more than 60 per cent since 2001. Industrial electricity prices in Ontario rose above those in Quebec, Manitoba, British Columbia and New Brunswick. In addition, industrial electricity prices in Ontario rose above those in competing states such as Ohio and Illinois, in part due to the increase in the value of the Canadian dollar. It was concluded that the price increase may lead to a greater decline in economic output in Ontario compared to competing jurisdictions. 2 tabs., 14 figs., 1 appendix

Competitive electric power markets and grid reliability : something has changed during the past decade

International Nuclear Information System (INIS)

Fluckiger, K.

2005-01-01

This white paper reviewed some of the fundamental changes in the way in which electricity is provided to customers. Previously, electricity was delivered by integrated electric utilities that owned both generation and transmission and directly served their customers. Restructuring altered the rules that govern control, operation, ownership and regulation of the industry. The traditional integrated utility has been disaggregated. Wholesale electricity costs are no longer regulated and prices are now set by supply and demand in a market context. Generation investment decisions are based on future expectations of market performance. It was suggested that transmission should become a facilitator of the competitive market. Inter-ties are an essential part of a competitive market, as a means to import power when needed and to export surplus energy. The role of transmission in facilitating new generation by providing non-discriminatory and efficient transport to the market was discussed. It was noted that the lack of transmission investment is resulting in economic penalties, rising losses and constraints on more economic generators. Transmission congestion is counterproductive to the interests of customers. A move away from regional planning to a recognition of the wider interconnectedness of the system was recommended. The current practice of deferring necessary maintenance as a way to generate short-term profit was examined. It was noted that despite the need for new transmission infrastructure, investment in merchant alternating current projects has been slow to materialize. Other challenges to transmission included the uncertainty of regulatory processes and investment recovery as well as the unpredictability of flow patterns in the bulk power system. It was concluded that competitive generation markets will not work with an inadequate transmission infrastructure. Transmission enables new generation by ensuring non-discriminatory and efficient transport to market

Do regulatory mechanisms promote competition and mitigate market power? Evidence from Spanish electricity market

International Nuclear Information System (INIS)

Moutinho, Victor; Moreira, António C.; Mota, Jorge

2014-01-01

This paper estimates the relationships between bidding quantities, marginal cost and market power measures in the Spanish wholesale electricity market for two different regulatory periods: 2002–2005 and 2006–2007. Using panel econometric techniques we find differences in the impacts on bidding strategies for both periods. Hence, the marginal cost and the market power measures affect bid and net quantities. The market power measures also suggest that the coefficient is consistently positive and highly significant for both periods. Moreover, the market power and marginal costs have mixed effects according to the models proposed for both periods. In addition, our results point to the effectiveness of the different effects of mitigating the market power in the Spanish electricity market. For the 2006–2007 period, the proposed causal relationships are partially validated by the cointegration results, which assumes there is a significant causality between the Lerner Index and the marginal cost. - Highlights: • Competition and regulation in the Spanish electricity market. • Net supplier and net demander behavior in the spot market. • Panel cointegration methods used: FMOLS, PMG, MG, DFE and DOLS. • The price cap regulation is effective in mitigating market power. • Market power and marginal cost have positive effects on bidding strategies

Electric Power Regulation in Mexico

Energy Technology Data Exchange (ETDEWEB)

Landa, J V [Universidad Nacional Autonoma de Mexico, Mexico City (Mexico)

1994-12-31

The history of the electrical power sector in Mexico, the prominent role that government plays in the generation, transformation, distribution and supply of electrical power, and the implications of the North American Free Trade Agreement (NAFTA) for this sector were summarized. The slow pace of the Mexican electricity sector in achieving cost efficiency through pricing policy was criticized, and the issue of regulation versus deregulation of the electricity sector was examined in the context of NAFTA, emphasizing the contradiction between the idea of international trade and a highly regulated industry. Revisions of the original constitutional article to exclude electrical power generation from governmental control and to allow market mechanisms and competition to lower costs and increase efficiency was recommended.It was considered a pre-condition to a stable balance between competition and energy efficient environmentally friendly practices.

Electric power in Europe: towards a competitive oligopoly?

International Nuclear Information System (INIS)

Huby, J.; Noilhan, F.; Sauvage, Ph.

2002-09-01

The Electricity Sector of the European Union has experienced very deep changes in the last decade, in the wake of the 1996 'Electricity Directive'. In most Member States, companies that once enjoyed the position of de facto or de jure monopolists have been facing an increasing competitive pressure, while development of cross-border trade combined with cross-border Mergers and Acquisitions indicates a deeper European integration. It seems that the 'internal market in Electricity', targeted by the 1996 Directive, is slowly but surely taking shape. The present study intends to draw a picture of the recent evolution in the European Electricity Sector and to identify the challenges and options the European public authorities are now facing. Our starting point is an in-depth analysis of the idiosyncrasies of the Electricity Sector in general and of the constraints they impose on the market design. We move then to the peculiarities of the 'Continental Europe', an area including France, Germany, the Benelux and the 'electric peninsulas' of Italy and Spain, but excluding the United Kingdom and the Scandinavian countries. The latter have indeed a longer and quite different experience of liberalization. We then describe the current regulatory and legislative state of the play and try to identify clear-cut tendencies for the future evolution. We conclude that the 'internal market in Electricity' is far from completion and that the strategy adopted by the European Union seems to be that of a slow and cautious deepening of reforms that are already 'on the way'. Thus one can anticipate that the present framework will not - and maybe should not - experience a radical upheaval. After having built up the setting, we focus on the industrial organisation of the sector. It seems to us that the consolidation that took place in 'Continental Europe' during the last five years is now settling down. Seven or eight major players are emerging, each of which is relying on a geographical

Strategies for competitive nuclear power plants

International Nuclear Information System (INIS)

1999-11-01

This technical publication on competitive strategies for nuclear power plants (NPPs) is part of an ongoing project on management of NPP operations in a competitive environment. The overall objective of this project is to assist the management of operating organizations and NPPs in identifying and implementing appropriate measures to remain competitive in a rapidly changing business environment. Other documents that have been written on this topic have focused on how the environment in which NPPs operate is changing. This report instead focuses on strategies and techniques that operating organization and NPP managers can use to succeed in this environment. Of particular note is ongoing OECD/NEA work to describe the environment for nuclear power in competitive electricity markets. The main objective of the OECD/NEA study is to review the impacts of increasing market competition on the nuclear power sectors in OECD Member countries. The OECD/NEA study is identifying various nuclear aspects which have to be considered in relation to the regulatory reform of the electricity sector in OECD Member States. The OECD/NEA work was co-ordinated with the development of this IAEA report; staff members from the two organizations participated in the development and review of the associated documents. Thus, the strategies and techniques identified in this report are consistent with the impacts of increasing market competition identified in the OECD/NEA study

Transmission : roadway to a competitive electricity market

Energy Technology Data Exchange (ETDEWEB)

Thon, S. [AltaLink L.P., AB (Canada)

2002-07-01

Having a variety of suppliers, marketers and retailers is the key to developing a successful electricity market which is more competitive on pricing, with less price volatility, more innovative customer products and higher levels of customer services. Some areas of Alberta are developing their own power markets with limited capacity to interact. These include Pincher Creek, Empress, Calgary, Edmonton, and Fort McMurray. It was noted that increasing transmission capacity is the key to ensuring a bigger and more competitive electricity market. Transmission constraints only encourage a small number of suppliers to control the market. The current cost of transmission capacity accounts for less than 5 per cent of an average residential customer's bill, but it plays a major role in providing more choice to competitive electricity suppliers. Developing more transmission capacity will create an even more competitive market that benefits both consumers and suppliers. Prices in Alberta have been very volatile in the past couple of years because of supply and demand issues, and there is a need to increase market liquidity. Alberta's Transmission Administrator is looking to expand the transmission network to alleviate constraints and to lower the cost of power generation, regardless of location. These expansions are not expected to affect customers' bills by more than 2 to 3 per cent. Such transmission concerns are being felt all over North America. The Federal Energy Regulatory Commission (FERC) in the United States also recognizes the link between transmission and creating a competitive electricity market.

Restructured electric power systems analysis of electricity markets with equilibrium models

CERN Document Server

2010-01-01

Electricity market deregulation is driving the power energy production from a monopolistic structure into a competitive market environment. The development of electricity markets has necessitated the need to analyze market behavior and power. Restructured Electric Power Systems reviews the latest developments in electricity market equilibrium models and discusses the application of such models in the practical analysis and assessment of electricity markets.

Economic competitiveness of nuclear power in China

International Nuclear Information System (INIS)

Hu Chuanwen

2005-01-01

Development of nuclear power in China has made a good progress. Currently, economic competitiveness of nuclear power compared to fossil-fuelled power plants is one of the major problems which hamper its development. This article presents the economic competitiveness of nuclear power in China with two-level analyses. First, levelized lifetime cost method is adopted for electricity generation cost comparisons. Important factors influencing economic competitiveness of nuclear power are described. Furthermore, a broad economic evaluation of the full fuel chain of nuclear power and fossil-fuelled plants is discussed concerning macro social-economic issues, environmental and health impacts. The comprehensive comparative assessment would be carried out for decision making to implement nuclear power programme. In consideration of external costs and carbon value, the economic competitiveness of nuclear power would be further improved. Facing swift economic growth, huge energy demand and heavy environmental burden, nuclear power could play a significant role in sustainable development in China. (authors)

Does electricity from nuclear power stand a chance in competition?

International Nuclear Information System (INIS)

Hohlefelder, W.

2000-01-01

Deregulation and the intended opt-out of the peaceful uses of nuclear power have completely changed the economic and political boundary conditions for nuclear power. The future of nuclear power needs to be reassessed on this basis. In doing so, the author arrives at these conclusions: 1. The nuclear power plants existing in Germany enjoy cost advantages in procurement competition. 2. It would be counterproductive, therefore, to give up this advantageous position by opting out, executing the law only with a view to opting out, or creating additional artificial economic burdens. 3. The cost advantage relative to other technologies of power generation is dwindling. This is why consistent cost management is indispensable, but only as long as it does not affect plant safety. 4. If Germany opted out of using nuclear power, 'German' nuclear power, or at least a large part of it, would be replaced by nuclear power from abroad. This adds to the incentive to keep German nuclear power plants in operation as long as possible. 5. Building new nuclear power plants in completely deregulated markets is difficult for economic reasons. There is a onesided swing to one source of energy, namely the most cost effective, least capital intensive source. This entails a major supply risk. Irrespective of the basic decision to deregulate the electricity market, a correction of the boundary conditions imposed politically is to be expected on a medium term so that wrong developments will be avoided. (orig.) [de

Reliability risks during the transition to competitive electricity markets

International Nuclear Information System (INIS)

Hughes, J.P.

2005-01-01

The Electricity Consumers Resource Council (ELCON) is a U.S. association representing industrial consumers of electricity, and is a long-standing advocate of competition in the electric power industry. However, because a reliable grid is necessary to support competitive wholesale markets, ELCON believes that the transmission system is an essential facility that must remain regulated. The initiatives discussed in this white paper represent significant steps that the National Electric Reliability Council (NERC) and the industry have taken to improve reliability in a competitive and restructured electric industry. Strategic manoeuvres of incumbent utilities to maintain market share were evaluated, as well as discrimination against potential competitors. It was suggested that, occasionally, indecisive federal policies have been taken advantage of by utilities. The unintended consequences of state restructuring policies that allow utilities to over-earn their revenue requirements were reviewed. NERC reliability standards will remain unenforceable until a new Electricity Reliability Organization has been certified. Flawed market designs and inadequate market power mitigation, as well as the financial distress of merchant generators, pose considerable risks. It was suggested that these risks could trigger transmission loading relief incidents, local outages or widespread outages. In the absence of mandatory reliability standards with penalties, and complementary market rules for mitigating generation and transmission market power, economic incentives will encourage other forms of opportunistic behavior that may be the root cause of other outages. Public concern regarding these risks to grid reliability may result in lost public support for competitive electricity markets. Proposed solutions include the certification of a new Electric Reliability Organization to establish and enforce mandatory reliability standards, and granting the Federal Energy Regulatory Commission

Costs and competitiveness of nuclear electricity

International Nuclear Information System (INIS)

Bennett, L.L.; Woite, G.

1995-01-01

The experienced and projected future construction costs and electricity generation costs of nuclear and fossil fired power plants are reviewed and compared. On the basis of actual operating experience, nuclear power has been demonstrated to be economically competitive with other base load generation options, and international studies project that this economic competitiveness will be largely maintained in the future, over a range of conditions and in a number of countries. However, retaining and improving this competitiveness position requires concerted efforts to ensure that nuclear plants are constructed within schedule and budget, and are operated reliably and efficiently. Relevant cost impacting factors are identified, and conclusions for successful nuclear power plant construction and operation are drawn. The desire to attain sustainable development with balanced resource use and control of the environmental and climatic impacts of energy systems could lead to renewed interest in nuclear power as an energy source that does not emit greenhouse gases, thus contributing to a revival of the nuclear option. In this regard also, mitigation of emissions from fossil fuelled power plants could lead to restrictions of fossil fuel use and/or result in higher costs of fossil based generation, thus improving the economic competitiveness of nuclear power. (author). 19 refs, 7 figs, 2 tabs

Competition effects of mergers: An event study of the German electricity market

International Nuclear Information System (INIS)

Keller, Andreas

2010-01-01

This paper investigates the competition effects of the entry of Vattenfall into the German electricity market. While the competition authorities supported the entry by approving Vattenfall's acquisition of three regional utilities, other market participants raised concerns over the emergence of an upcoming oligopoly in the German market for power generation. We contrast the efficiency hypothesis postulating pro-competitive effects of mergers with the market power hypothesis postulating anti-competitive effects. For the analysis of the two opposing hypotheses, we use an event study approach to the stock prices of Vattenfall's competitors in the German market. While we find no empirical evidence for increased market power in the German electricity market due to Vattenfall's mergers, there is some indication for efficiency increases. We therefore cannot oppose the view of the competition authorities predicting an overall positive effect for consumers as a result of Vattenfall's entry into the German electricity market.

The prospects for cost competitive solar PV power

International Nuclear Information System (INIS)

Reichelstein, Stefan; Yorston, Michael

2013-01-01

New solar Photovoltaic (PV) installations have grown globally at a rapid pace in recent years. We provide a comprehensive assessment of the cost competitiveness of this electric power source. Based on data available for the second half of 2011, we conclude that utility-scale PV installations are not yet cost competitive with fossil fuel power plants. In contrast, commercial-scale installations have already attained cost parity in the sense that the generating cost of power from solar PV is comparable to the retail electricity prices that commercial users pay, at least in certain parts of the U.S. This conclusion is shown to depend crucially on both the current federal tax subsidies for solar power and an ideal geographic location for the solar installation. Projecting recent industry trends into the future, we estimate that utility-scale solar PV facilities are on track to become cost competitive by the end of this decade. Furthermore, commercial-scale installations could reach “grid parity” in about ten years, if the current federal tax incentives for solar power were to expire at that point. - Highlights: ► Assessment of the cost competitiveness of new solar Photovoltaic (PV) installations. ► Utility-scale PV installations are not yet cost competitive with fossil fuel power plants. ► Commercial-scale installations have already attained cost parity in certain parts of the U.S. ► Utility-scale solar PV facilities are on track to become cost competitive by the end of this decade

Moving targets. Economic competitiveness of nuclear power

International Nuclear Information System (INIS)

Rogner, H.H.; Langlois, L.

2000-01-01

Most world electricity markets are now moving towards greater competition, driven in part by technology, low fuel prices, and experience that competitive markets are more self-sustaining. Electric power is being sold in a number of markets in member countries of the Organization for Economic Cooperation and Development (OECD) for around US $0.02 per kilowatt-hour (kWh). Can nuclear generation match such prices? If not, can it be made to do so? Electricity companies are now in the business of selling a commodity (kWh) and commercial services instead of a strategic good. Excess capacity, low demand growth and lower product prices in major industrialized countries have forced power generators and their suppliers to be more concerned with the costs of their operations and profitability of their investments. These companies increasingly need a commercial, profit-oriented approach if they are to survive and prosper. Even more, they will need to make substantial cost reductions over the next few years. The nuclear industry is no exception. How does nuclear power stack up in this environment? The IAEA Planning and Economic Studies Section is doing a series of studies on precisely these questions, divided into issues affecting the near, medium and long-term future of nuclear power. This corresponds roughly to matters affecting existing plants, upgrades and life extensions, or new plants. In general, the studies find that nuclear power has the potential to be competitive in all three markets. But realizing that potential will require significant changes on the part of the industry and its regulators. This article focuses on the prevailing market situation in many industrialized countries. Several lessons also are applicable to developing countries, particularly in cases where the financing of electric power projects is expected to come from international capital markets. The overall situation is distinctly different for developing countries. Typically the capacity there for

Transaction of long-term power purchasing contract by independent power providers in wholesale and retail competitive system

Energy Technology Data Exchange (ETDEWEB)

Lee, Seung Hoon [Korea Energy Economics Institute, Euiwang (Korea)

1998-12-01

In general, the restructuring starts with separation and division of power sector from the existing monopolist as the cases of Thailand and Malaysia. When the power provider is separated and divided, it becomes an independent power provider. The existing regional electricity provider carries out the supplying function to end-users buying electricity from several separated and divided providers. Therefore, the existing regional electricity providers give up the power generation business but become a demand monopolist in wholesale market. The competition system capable of applying during the separation period is the Generation Pool. With the Generation Pool, it is able to promote competition of power generation sector effectively and there is no need to have an extra step such as long-term power purchasing contract. In fact, Latin America and Chile have been managed the power market for more than 10 years with the competition system by the Generation Pool. 9 refs.

Integrating competition and planning: A mixed institutional model of the Brazilian electric power sector

International Nuclear Information System (INIS)

Bajay, S.V.

2006-01-01

During the past decade, the Brazilian electric power sector went through similar institutional changes taken place in both developing and developed countries. The main goals for such changes were to inject competition into the generation and supply links of the sector's production chain and to reduce public debt via privatization of state-owned utilities that dominated the pre-reform sector. This paper discusses why these changes took place in Brazil and explains why the results of the reform model implemented by the previous federal administration were unsatisfactory. The current federal administration has substantially altered the prior model, aiming to remedy insufficient private investment in new power stations that caused a serious power shortage in 2001. The paper addresses the main characteristics of the new model, which implements (a) public biddings of new power plants for all distribution utilities in the country, and (b) forward planning of optimal commissioning times and capacity of new plants. The paper ends with a discussion of the potential benefits and drawbacks of the new scheme and the role of the regulator in the early stage of the ongoing transition in the Brazilian electrical power industry. (author)

The effect of counter-trading on competition in electricity markets

NARCIS (Netherlands)

Dijk, J.J.; Willems, B.

2011-01-01

In a competitive electricity market, nodal pricing is the most efficient way to manage congestion. Counter-trading is inefficient as it gives the wrong long term signals for entry and exit of power plants. However, in a non-competitive market, additional entry will improve the competitiveness of the

Monopoly and competition in the electric power industry

International Nuclear Information System (INIS)

Eugeniu, P.; Rucareanu, L.C.

1995-01-01

The authors show how some of the electric energy characteristics can lead to monopoly and state control and how this trend acts in the totalitarian regimes and in the market economy countries. For exemplification, the organization of the electricity industry in several countries, its evolution and its trends for the near future, are shown. Taking into consideration the Romanian present situation, there are underlined the factors able to ensure the transition to a regime based on private property and competition. Finally it is shown that the Romanian electricity industry requires a two stage implementation of the privatization process: first a non-cession form implying management contracts, loaning contracts, concessions in exploitation and public and private enterprises associations, followed by a cession form when the capital is privatized by direct selling. (author)

Competitive Electricity Market Regulation in the United States: A Primer

Energy Technology Data Exchange (ETDEWEB)

Flores-Espino, Francisco [National Renewable Energy Lab. (NREL), Golden, CO (United States); Tian, Tian [National Renewable Energy Lab. (NREL), Golden, CO (United States); Chernyakhovskiy, Ilya [National Renewable Energy Lab. (NREL), Golden, CO (United States); Chernyakhovskiy, Ilya [National Renewable Energy Lab. (NREL), Golden, CO (United States); Miller, Mackay [National Grid, Warwick (United Kingdom)

2016-12-01

The electricity system in the United States is a complex mechanism where different technologies, jurisdictions and regulatory designs interact. Today, two major models for electricity commercialization operate in the United States. One is the regulated monopoly model, in which vertically integrated electricity providers are regulated by state commissions. The other is the competitive model, in which power producers can openly access transmission infrastructure and participate in wholesale electricity markets. This paper describes the origins, evolution, and current status of the regulations that enable competitive markets in the United States.

Modelling prices in competitive electricity markets

International Nuclear Information System (INIS)

Bunn, D.W.

2004-04-01

Electricity markets are structurally different to other commodities, and the real-time dynamic balancing of the electricity network involves many external factors. Because of this, it is not a simple matter to transfer conventional models of financial time series analysis to wholesale electricity prices. The rationale for this compilation of chapters from international authors is, therefore, to provide econometric analysis of wholesale power markets around the world, to give greater understanding of their particular characteristics, and to assess the applicability of various methods of price modelling. Researchers and professionals in this sector will find the book an invaluable guide to the most important state-of-the-art modelling techniques which are converging to define the special approaches necessary for unravelling and forecasting the behaviour of electricity prices. It is a high-quality synthesis of the work of financial engineering, industrial economics and power systems analysis, as they relate to the behaviour of competitive electricity markets. (author)

Competitiveness of nuclear power generation

International Nuclear Information System (INIS)

Sumi, Yoshihiko

1998-01-01

In view of the various merits of nuclear power generation, Japanese electric utilities will continue to promote nuclear power generation. At the same time, however, it is essential to further enhance cost performance. Japanese electric utilities plan to reduce the cost of nuclear power generation, such as increasing the capacity factor, reducing operation and maintenance costs, and reducing construction costs. In Asia, nuclear power will also play an important role as a stable source of energy in the future. For those countries planning to newly introduce nuclear power, safety is the highest priority, and cost competitiveness is important. Moreover, financing will be an essential issue to be resolved. Japan is willing to support the establishment of nuclear power generation in Asia, through its experience and achievements. In doing this, support should not only be bilateral, but should include all nuclear nations around the Pacific rim in a multilateral support network. (author)

Competition and Cooperation of Distributed Generation and Power System

Science.gov (United States)

Miyake, Masatoshi; Nanahara, Toshiya

Advances in distributed generation technologies together with the deregulation of an electric power industry can lead to a massive introduction of distributed generation. Since most of distributed generation will be interconnected to a power system, coordination and competition between distributed generators and large-scale power sources would be a vital issue in realizing a more desirable energy system in the future. This paper analyzes competitions between electric utilities and cogenerators from the viewpoints of economic and energy efficiency based on the simulation results on an energy system including a cogeneration system. First, we examine best response correspondence of an electric utility and a cogenerator with a noncooperative game approach: we obtain a Nash equilibrium point. Secondly, we examine the optimum strategy that attains the highest social surplus and the highest energy efficiency through global optimization.

Green Power Marketing in Retail Competition: An Early Assessment

Energy Technology Data Exchange (ETDEWEB)

Wiser, R. (LBL); Fang, J.; Porter, K.; Houston, A. (NREL)

1999-02-26

Green power marketing-the business of selling electricity products or services based in part on their environmental values-is still in an early stage of development. This Topical Issues Brief presents a summary of early results with green power marketing under retail competition, covering both fully competitive markets and relevant direct access pilot programs. The brief provides an overview of green products that are or were offered, and discusses consumers' interest in these products. Critical issues that will impact the availability and success of green power products under retail competition are highlighted.

Green Power Marketing in Retail Competition: An Early Assessment

International Nuclear Information System (INIS)

Kevin Porter; Ryan Wiser

1999-01-01

Green power marketing-the business of selling electricity products or services based in part on their environmental values-is still in an early stage of development. This Topical Issues Brief presents a summary of early results with green power marketing under retail competition, covering both fully competitive markets and relevant direct access pilot programs. The brief provides an overview of green products that are or were offered, and discusses consumers' interest in these products. Critical issues that will impact the availability and success of green power products under retail competition are highlighted

Carbon pricing, nuclear power and electricity markets

Energy Technology Data Exchange (ETDEWEB)

Cameron, R.; Keppler, J. H. [OECD Nuclear Energy Agency, 12, boulevard des Iles, 92130 Issy-les-Moulineaux (France)

2012-07-01

In 2010, the NEA in conjunction with the International Energy Agency produced an analysis of the Projected Costs of Electricity for almost 200 power plants, covering nuclear, fossil fuel and renewable electricity generation. That analysis used lifetime costs to consider the merits of each technology. However, the lifetime cost analysis is less applicable in liberalised markets and does not look specifically at the viewpoint of the private investor. A follow-up NEA assessment of the competitiveness of nuclear energy against coal- and gas-fired generation under carbon pricing has considered just this question. The economic competition in electricity markets is today between nuclear energy and gas-fired power generation, with coal-fired power generation not being competitive as soon as even modest carbon pricing is introduced. Whether nuclear energy or natural gas comes out ahead in their competition depends on a number of assumptions, which, while all entirely reasonable, yield very different outcomes. The analysis in this study has been developed on the basis of daily data from European power markets over the last five-year period. Three different methodologies, a Profit Analysis looking at historic returns over the past five years, an Investment Analysis projecting the conditions of the past five years over the lifetime of plants and a Carbon Tax Analysis (differentiating the Investment Analysis for different carbon prices) look at the issue of competitiveness from different angles. They show that the competitiveness of nuclear energy depends on a number of variables which in different configurations determine whether electricity produced from nuclear power or from CCGTs generates higher profits for its investors. These are overnight costs, financing costs, gas prices, carbon prices, profit margins (or mark-ups), the amount of coal with carbon capture and electricity prices. This paper will present the outcomes of the analysis in the context of a liberalised

Carbon pricing, nuclear power and electricity markets

International Nuclear Information System (INIS)

Cameron, R.; Keppler, J. H.

2012-01-01

In 2010, the NEA in conjunction with the International Energy Agency produced an analysis of the Projected Costs of Electricity for almost 200 power plants, covering nuclear, fossil fuel and renewable electricity generation. That analysis used lifetime costs to consider the merits of each technology. However, the lifetime cost analysis is less applicable in liberalised markets and does not look specifically at the viewpoint of the private investor. A follow-up NEA assessment of the competitiveness of nuclear energy against coal- and gas-fired generation under carbon pricing has considered just this question. The economic competition in electricity markets is today between nuclear energy and gas-fired power generation, with coal-fired power generation not being competitive as soon as even modest carbon pricing is introduced. Whether nuclear energy or natural gas comes out ahead in their competition depends on a number of assumptions, which, while all entirely reasonable, yield very different outcomes. The analysis in this study has been developed on the basis of daily data from European power markets over the last five-year period. Three different methodologies, a Profit Analysis looking at historic returns over the past five years, an Investment Analysis projecting the conditions of the past five years over the lifetime of plants and a Carbon Tax Analysis (differentiating the Investment Analysis for different carbon prices) look at the issue of competitiveness from different angles. They show that the competitiveness of nuclear energy depends on a number of variables which in different configurations determine whether electricity produced from nuclear power or from CCGTs generates higher profits for its investors. These are overnight costs, financing costs, gas prices, carbon prices, profit margins (or mark-ups), the amount of coal with carbon capture and electricity prices. This paper will present the outcomes of the analysis in the context of a liberalised

Analysis of the competition on the retail market for electric power; Analyse af konkurrencen pae detailmarkedet for el

Energy Technology Data Exchange (ETDEWEB)

NONE

2012-10-15

This year it is almost ten years ago, that it was made possible for all electricity consumers to choose their supplier. Specifically, this was done by changes in the Electricity Supply Act, whereby increased competition was designated as the central means of achieving the energy policy objectives of security of supply, economics, environment, and consumer protection. The retail electricity market's turnover today is approx. 43 billion. DKK, but it is expected to grow significantly in the coming years because consumers are increasingly expected to use electricity from renewable energy for heating and transport. It is obvious that it is also for this reason essential to the economy that competition in the retail market works as well as possible. In practice, competition as an instrument is aimed at production and retail sales in the electricity market, with the significant exception that the smaller consumers are protected by both the competition itself as well as by the special supply regulation. The protective supply regulation means that a majority of consumers and small and medium-sized enterprises do not have sufficient incentive to trade electricity on the free market, which in turn means that there is not exercised pressure on suppliers that can lead to innovation, product development, or to provide electricity at the lowest possible prices. The Secretariat of the Danish Energy Regulatory Authority has against this background made an in-depth analysis of the competition in the retail market for electricity and for the general supply regulation. The analysis shows that there are a number of barriers that stand in the way of effective competition in the retail market, and thus of fostering innovation, product development and potential improvements in infrastructure. The Danish government and parliament have taken a number of initiatives that remove some of the barriers. But challenges still remain. They all originate from inertia and low mobility at

Competitive market and sources of its advantages in the electric energy subsector

Directory of Open Access Journals (Sweden)

Kazimierz Pająk

2017-07-01

Full Text Available The electric energy subsector varies considerably in terms of competitiveness depending on the area under analysis. Power generation, transmission and distribution have quite different characteristics of competitiveness than areas such as electricity trading. In the area of power generation, competitive advantage is developed by factors such as: skilful operation in the fuel market and targeted investments affecting the efficiency and effectiveness of equipment. In the area of energy distribution, despite the natural monopoly, some distribution system operators dynamically take over the market share of newly constructed networks. The area of energy trading can be successfully compared to other competitive market segments where mass sales of services and products occur.

Regulatory reform in the Spanish electricity industry: a missed opportunity for competition

International Nuclear Information System (INIS)

Arocena, P.; Kuhn, Kai-Uwe; Regibeau, P.

1998-01-01

This paper examines the reform of the Spanish electricity industry, and argues that the reform is a lost opportunity for the rapid introduction of competition. The evolution of the Spanish electrical power industry is traced, and the basic characteristics of the Spanish electricity market, the regulatory regime before liberalisation, and the liberalisation process and its shortcomings are discussed. Some policy suggestions are raised including the facilitating of competitive entry in generation, the liberalisation of supply activities, the regulation of distribution, and increasing the power, independence and transparency of the regulator. The capacity, generation, and distribution shares of Spanish electric companies as of 1996 are tabulated. (UK)

Financial methods in competitive electricity markets

Science.gov (United States)

Deng, Shijie

The restructuring of electric power industry has become a global trend. As reforms to the electricity supply industry spread rapidly across countries and states, many political and economical issues arise as a result of people debating over which approach to adopt in restructuring the vertically integrated electricity industry. This dissertation addresses issues of transmission pricing, electricity spot price modeling, as well as risk management and asset valuation in a competitive electricity industry. A major concern in the restructuring of the electricity industries is the design of a transmission pricing scheme that will ensure open-access to the transmission networks. I propose a priority-pricing scheme for zonal access to the electric power grid that is uniform across all buses in each zone. The Independent System Operator (ISO) charges bulk power traders a per unit ex ante transmission access fee based on the expected option value of the generated power with respect to the random zonal spot prices. The zonal access fee depends on the injection zone and a self-selected strike price determining the scheduling priority of the transaction. Inter zonal transactions are charged (or credited) with an additional ex post congestion fee that equals the zonal spot price difference. The unit access fee entitles a bulk power trader to either physical injection of one unit of energy or a compensation payment that equals to the difference between the realized zonal spot price and the selected strike price. The ISO manages congestion so as to minimize net compensation payments and thus, curtailment probabilities corresponding to a particular strike price may vary by bus. The rest of the dissertation deals with the issues of modeling electricity spot prices, pricing electricity financial instruments and the corresponding risk management applications. Modeling the spot prices of electricity is important for the market participants who need to understand the risk factors in

Implementation of Electricity Business Competition Framework with Economic Dispatch Direct Method

Directory of Open Access Journals (Sweden)

Yusra Sabri

2012-12-01

Full Text Available Technically, electricity business under competition structure is more complex than that of vertically integrated one. The main prolems here are how to create an applicable competition framework and to solve electric calculations very quickly to obtain an optimal energi pricing, cost of losses, congestion and transportation costs by less than 15 minutes. This paper proposes a competition framework with the electric calculations, where a bilateral contract has been accommodated. Optimal energy price in the paper is calculated based on direct method of economic dispatch to obtain the result very quickly. The proposed method has been simulated to a 4-bus system. The simulation results show that the method works well and complies with the expectation. Therefore, electric power business under competition structure can be well realized by the proposed method.

Market power analysis for the Iranian electricity market

International Nuclear Information System (INIS)

Asgari, Mohammad Hossein; Monsef, Hassan

2010-01-01

The market power problem in Iranian electricity market is addressed in this study. This paper by using various structural indices of market power and reviewing market results analyzes the intensity of competition in Iran's electricity market and examines whether this market is functioning at an appropriate level of efficiency. In this article the most well-known indices of market power are calculated in two approaches for two different scenarios (current situation and future outlook of generation sector's ownership in Iran's power industry). Comparing the results of these scenarios promises more competitive market for the second scenario. Calculating Residual Supply Index for Iran's power market shows despite admissible values of concentration ratios, due to supply scarcity during periods when the demand is close to the total available capacity, some suppliers can exercise market power even with a relatively small market share. The most important price and load indices like weighted average prices and load/price duration curves of Iranian electricity market during March 2007-March 2008 are also analyzed in this paper. These results imply the existence of economic withholding. The main limiting factors of competition and significant implemented countermeasures for market power mitigation in Iran's electricity market are also mentioned.

Regulation and competition in United Kingdom electricity and gas industries

International Nuclear Information System (INIS)

McGowan, F.

1992-01-01

Focussing on the role of regulation in developing competition, this paper reviews the development of a regulation system to monitor and control prices, as well as, quality of service, in the UK's recently privatized electricity and gas industries. The review covers: the control mechanisms applied to the natural gas tariff and contract markets in the area of common carriage; performance monitoring and the concept of yardstick competition in the electric power industry; and the management and control, by OFFER (Office of Electricity Regulation), of the total 'pool' of generated electricity. It is noted that whereas Great Britain's particular energy supply situation permits this nation to attempt privatization/competition regulation, the energy balances of other European countries make similar attempts, for them, risky. The UK experience with privatization/competition regulation so far has shown that regulation is indispensable in guaranteeing competition, and that the incorporation of the controlling board within the framework of anti-trust legislation and the granting of full autonomy to this board has greatly favoured its effectiveness

Limiting conditions for nuclear power plant competitiveness vs. fossil and wind plants

International Nuclear Information System (INIS)

Feretic, Danilo; Cavlina, Nikola

2010-01-01

The aim of this paper is to compare potential energy options for future electricity generation. The paper considers comparison of discounted total cost of electricity generated by nuclear power plant and by combined natural gas and wind plants, having in total equal electricity generation. Large uncertainty in the future fuel costs makes planning of optimal power generating mix very difficult to justify. Probabilistic method is used in the analysis which allows inclusion of uncertainties in future electricity generating cost prediction. Additionally, an informative functional relation between nuclear plant investment cost, natural gas price and wind plant efficiency, that determines competitive power generation between considered options, is also shown. Limiting conditions for nuclear power plant competitiveness vs. fossil and wind plants are presented. (authors)

Is nuclear power competitive

International Nuclear Information System (INIS)

Brandfon, W.W.

1984-01-01

The first phase of a two-phase study of the competitiveness of electricity from new coal and nuclear plants with oil and natural gas in common markets concludes that, with few exceptions throughout the country, overall levelized nuclear generating cost could be lower than coal generating costs by more than 40%. The study shows a wider margin of economic superiority for nuclear than has been seen in other recent studies. Capital and fuel costs are the major determinants of relative nuclear and coal economics. The only substantial difference in the input assumptions has related to a shorter lead time for both coal and nuclear units, which reduces capital costs. The study gives substance to the charge that delaying tactics by intervenors and an unstable licensing environment drove up lifetime costs of both coal and nuclear plants. This caused an increase in electric rates and affected the entire economy. The study shows that nuclear power is competitive when large baseload capacity is required. 14 figures

Reference costs of the electric power production

International Nuclear Information System (INIS)

2003-06-01

This study periodically realized by the DGEMP aims to compare the competitiveness of the different channels of electric power production, for different utilization conditions. The first part ''reference costs of the 2003 electric power production'' examines the prices of the electric power produced by different channels in particular in the framework of the industrial implementing in 2015. The nuclear and thermal power plants are concerned. The second part is devoted to the decentralized production channels (wind energy, photovoltaic, cogeneration heat-electricity) is under construction and will be presented next year. (A.L.B.)

Meeting the Pacific Rim's changing electric power needs

International Nuclear Information System (INIS)

Hammons, T.J.

1994-01-01

This article describes the presentations made at the 1994 Asian Electric Conference. The topics discussed in detail include a successfully implemented strategy for building power projects, a review of the reforms taking place as Australia moves toward a competitive national electricity market by July 1995, the reorganizing of Japan's electric power market, and the electricity reform program in Pakistan

The competitiveness of biofuels in heat and power production

International Nuclear Information System (INIS)

Kosunen, P.; Leino, P.

1995-01-01

The paper showed that natural gas is the most competitive fuel in all the energy production alternatives under review, ie both in separate heat production and electricity generation and in combined heat and power production. Even though the heavy fuel oil taxes have grown more rapidly than taxes on domestic fuels, oil continues to be cheaper than solid fuels in heating and steam plants. According to the feasibility calculations made, combined heat and power production is the least-cost production form of electricity, and the larger the plant unit, the lower the cost. Looking to the future, in respect of merely the development in fuel taxes the competitiveness of domestic fuels will improve markedly if the taxation structure remains unchanged. It seems that at smaller points of consumption, such as heating and steam plants and small-scale power plants, fuel chips would be the most competitive fuel. In larger units, such as heat and power production plants and condensing power plants, fuel peat, primarily milled peat, would be the most competitive. The competitiveness of fuel chips at larger plants will probably be limited by the supply of sufficient volumes from such an area where the delivery costs would not raise the price of fuel chips too high. Coal would remain competitive only if the real import price of coal rose clearly more slowly than the real prices of domestic fuels. It seems that heavy fuel oil will be used only as a start-up, support and back-up fuel. Evaluating the future competitiveness of natural gas is difficult, since the impact of new pipeline investments on the price of natural gas is not known

Electrical energy market management in deregulated power system

International Nuclear Information System (INIS)

Abady, A. F.; Niknam, T.

2003-01-01

For many decades, vertically integrated electric utilities monopolized the way they control, sell and distribute electricity to customers in their service territories. In this monopoly, each utility managed three main components of the system: generation, transmission and distribution. Analogous to perceived competitions in airline, communication and natural gas industries which demonstrated that vertically integrated monopolies could not provide services as efficiently as competitive firms, the electric power industry plans to improve its efficiency by providing a more reliable energy at least cost to customers. A competition is guaranteed by establishing a restructured environment in which customers could choose to buy from different suppliers and change suppliers as they wish in order to pay market base rates. This paper is dealing with progressive approach of restructuring in power and introduce ISO, its functions and model of electrical energy markets

Electric vehicle charge patterns and the electricity generation mix and competitiveness of next generation vehicles

International Nuclear Information System (INIS)

Masuta, Taisuke; Murata, Akinobu; Endo, Eiichi

2014-01-01

Highlights: • The energy system of whole of Japan is analyzed in this study. • An advanced model based on MARKAL is used for the energy system analysis. • The impact of charge patterns of EVs on electricity generation mix is evaluated. • Technology competitiveness of the next generation vehicles is also evaluated. - Abstract: The nuclear accident of 2011 brought about a reconsideration of the future electricity generation mix of power systems in Japan. A debate on whether to phase out nuclear power plants and replace them with renewable energy sources is taking place. Demand-side management becomes increasingly important in future Japanese power systems with a large-scale integration of renewable energy sources. This paper considers the charge control of electric vehicles (EVs) through demand-side management. There have been many studies of the control or operation methods of EVs known as vehicle-to-grid (V2G), and it is important to evaluate both their short-term and long-term operation. In this study, we employ energy system to evaluate the impact of the charge patterns of EVs on both the electricity generation mix and the technology competitiveness of the next generation vehicles. An advanced energy system model based on Market Allocation (MARKAL) is used to consider power system control in detail

Assessment of emission trading impacts on competitive electricity market price

DEFF Research Database (Denmark)

Singh, S.N.; Saxena, D.; Østergaard, Jacob

2011-01-01

analyzes the impact of electricity prices in the competitive electricity markets having a uniform market clearing price mechanism. Findings - It is found that the electricity prices depend on the system loading, generation mix, etc. at a particular hour. Various emission trading instruments are discussed...... side emission trading impact on electricity prices in the competitive power market. Design/methodology/approach - Various schemes are suggested and are being implemented to achieve this objective. It is expected that electricity price will increase due to imposition of emission taxes. This paper...... with a special emphasis on the European market. Research limitations/implications - Block bidding of the suppliers is considered whereas the demand is assumed to be inelastic. Originality/value - The emission trading impacts are analyzed on a simple example....

Nuclear regulatory challenges arising from competition in electricity markets

International Nuclear Information System (INIS)

2001-01-01

In recent years a world-wide trend has been developing to introduce competition in electricity markets. As market competition unfolds, it produces a wide range of safety challenges for nuclear power plant operators and regulators. Nuclear regulators must be aware of the potential safety challenges produced and consider whether new regulatory response strategies are warranted. This report describes many of these challenges, their implications and possible regulatory response strategies. The intended audience is primarily nuclear safety regulators, although government authorities, nuclear power plant operators and the general public may also be interested. (author)

Electric power. Enron establishes in Italy

International Nuclear Information System (INIS)

Anon.

1997-01-01

The US Enron group and the Italian Enel group have decided to create a joint-venture for the production of electric power in Italy. Their activities will be based on the transformation of existing classical thermal power plants into natural gas fueled combined cycle power plants. The total capacity of the converted power plants will be of 5000 MW. Enron should invest about 3 billions of US Dollars in this project and will be in a privileged position when the Italian electric power market will be open to competition in 1999. Short paper. (J.S.)

Generation Capacity Investments in Electricity Markets : Perfect Competition

NARCIS (Netherlands)

Gürkan, G.; Ozdemir, O.; Smeers, Y.

2013-01-01

Abstract: In competitive electricity markets, markets designs based on power exchanges where supply bidding (barring demand-side bidding) is at the sole short run marginal cost may not guarantee resource adequacy. As alternative ways to remedy the resource adequacy problem, we focus on three

Measuring competitiveness of the EPEX spot market for electricity

International Nuclear Information System (INIS)

Graf, Christoph; Wozabal, David

2013-01-01

The issue of market concentration in electricity markets and resulting possible anti-competitive behavior of producers is a much discussed topic in many countries. We investigate the day-ahead market for electricity at the EPEX, the largest central European market for electricity. To analyze whether generating companies use their market power to influence prices, we use a conjectural variations approach as well as a direct approach to construct marginal costs of electricity production. Given the available data, we cannot reject the hypothesis that there was no systematic abuse of market power by the suppliers of electricity on the EPEX day-ahead spot market for the years 2007–2010. These results are essentially robust when restricting the sample to high load hours, which are generally considered to be the most prone to market manipulation. -- Highlights: •We investigate the efficiency of the German spot market for electricity. •We employ a conjectural variations approach and a fundamental market model. •Peak load hours and base load hours are analyzed separately. •We find that the market was competitive from 2007 to 2010 for both base and peak hours. •Policies to promote market transparency in Germany can be regarded as successful

Factors affecting the cost and competitiveness of nuclear electricity

International Nuclear Information System (INIS)

Bertel, E.; Stevens, G.H.

1996-01-01

The general context in which are carried out the investment choices of the electric sector has evolved in a significant way during these last years and the changes are to a certain extent irreversible. Economic globalization, deregulation of the electricity market, privatisation of electricity producers, and increasing awareness of environmental issues are modifying the policy-making landscape and the criteria and priorities of decision-makers in the power sector. Competitiveness remains a cornerstone for evaluating and choosing alternative technologies in the process of planning and decision-making for electricity system expansion or power plant replacement. Nevertheless, the production costs analysis inserts factors which were not taking before into account as for instance social impacts, health and environmental effects. These new approaches better reveal the total costs of the different production means. They will certainly lead to different choices than those based on the whole comparison of direct costs supported by producers. The economic studies carried out by the Nuclear Energy Agency of the OECD (NEA) cover all the preceding aspects and give objective information on the competitiveness of nuclear electricity. The nuclear industry has today the necessary means to take up the challenges of the electricity new markets. (O.M.)

Power market competition

International Nuclear Information System (INIS)

Kelly, J.

1998-01-01

In the Unites States the prospect of greater competition in wholesale power market was immediately eclipsed by talk of retail competition. Attempts to move to retail competition have been costly and complex. Prudent public policy and economic analyses suggest that retail competition not be implemented until it can first be demonstrated that effective competition exists in wholesale power markets [it

Competitive positioning of power generation plants in a deregulated market

International Nuclear Information System (INIS)

Stephens, J.

1998-01-01

As industrialized countries deregulate their electric power industries, there is a fundamental shift from guaranteed cost recovery to open market competition on a deregulated grid. Utilities generally competitively bid into a power exchange where the lowest cost power providers are dispatched first. Therefore, the competitiveness of utilities determines their profitability. This commercial structure compels power generators to seek out ways of improving their equipment and plant performance. The inevitability of this trend is demonstrated by a look at the installed base in the US where the move toward deregulation is gaining momentum. More than half of the generating plants in the US are over 20 years old. The average thermal efficiency nation-wide is 33%. In contrast, contemporary coal-and gas-fired plants can operate at efficiency levels up to 45 percent and 55 to 60%, respectfully. With new facilities coming on-line, existing plants will need to make improvements to be dispatched. When deregulation fully envelopes the US market, utilities will not all fit into one pattern; their strategies and actions will depend on a multiple set of factors. Their success will be based on their ability to change landscapes from guaranteed cost recovery to competitive bidding. This paper discussers technical and commercial options available to power producers to improve their competitive positions in a deregulated market as well as software for determining the competitiveness of specific power plants and the location-based market prices of electricity. Examples of the application of alternatives will be cited along with expected payback and impact on cents per kilowatt-hour production costs

Competitive energy markets and nuclear power. Can we have both, do we want either?

International Nuclear Information System (INIS)

Thomas, Steve

2010-01-01

In 1987, the UK Conservative Party was re-elected promising to transform the electricity industry into a privatised competitive industry and to promote an expansion of nuclear power. Fulfilling both objectives was not possible. The nuclear plants were withdrawn from the sale and plans to build new plants were abandoned, but privatisation proceeded. In 2007, the Labour government began a new attempt to build nuclear plants to operate in the competitive electricity market, promising that no subsidies would be offered to them. By 2010, the utilities that were planning to build nuclear plants were beginning to suggest that 'support' in some form would be needed if they were to build new plants. More surprisingly, the energy regulator, Ofgem, cast doubt on whether a competitive wholesale electricity market would provide security of supply. In 1990, the UK government opted for a competitive electricity market over expanding nuclear power. Now, the option of opting for a competitive electricity market may not exist. However, this might not leave the way open for new nuclear plants. The expected cost of power from new nuclear plants is now so high that no more than one or two heavily subsidised plants will be built. (author)

The impossible dream? How Nuclear Electric, Ltd. pulled itself out of the ashes of government ownership and became highly competitive in a privatized and deregulating British power market

International Nuclear Information System (INIS)

Maycock, P.

1998-01-01

The day was dark for Nuclear Electric plc. when the British government decided it would privatize and deregulate the electric utility industry. For years, Nuclear Electric and other UK-based fossil power producers had been operating in a regulated market where the state set and guaranteed the price of electricity. All that was changing in Britain as the government introduced competition and as customers looked forward to purchasing power from the lowest bidder. Essentially the situation in England was much the same as it is now in the US: there was major momentum toward deregulation. The reality of competition in Britain came as good news to many power producers--in particular those who kept the lights on cost effectively. Others, However, weren't so optimistic, especially nuclear plants that traditionally bear higher safety and maintenance costs than their fossil counterparts. Taking its cues from the City (Britain's Wall Street), the British government simply considered nuclear generators to be unreliable, high cost, unprofitable organizations incapable of surviving in a privatized environment. It therefore left its nuclear power plants off the docket when selling (privatizing) its generating capacity. This paper describes how Nuclear Electric Ltd. became competitive in a deregulated environment

Determining the Interruptible Load with Strategic Behavior in a Competitive Electricity Market

Directory of Open Access Journals (Sweden)

Tae Hyun Yoo

2014-12-01

Full Text Available In a deregulated market, independent system operators meet power balance based on supply and demand bids to maximize social welfare. Since electricity markets are typically oligopolies, players with market power may withhold capacity to maximize profit. Such exercise of market power can lead to various problems, including increased electricity prices, and hence lower social welfare. Here we propose an approach to maximize social welfare and prevent the exercising of market power by means of interruptible loads in a competitive market environment. Our approach enables management of the market power by analyzing the benefit to the companies of capacity withdrawal and scheduling resources with interruptible loads. Our formulation shows that we can prevent power companies and demand-resource owners from exercising market powers. The oligopolistic conditions are described using the Cournot model to reflect the capacity withdrawal in electricity markets. The numerical results confirm the effectiveness of proposed method, via a comparison of perfect competition and oligopoly scenarios. Our approach provides reductions in market-clearing prices, increases in social welfare, and more equal distribution of surpluses between players.

Assessing the market power due to the network constraints in competitive electricity markets

International Nuclear Information System (INIS)

Bompard, E.; Ma, Y.C.; Napoli, R.; Jiang, C.W.

2006-01-01

The physical and operational constraints of the network pose very specific problems to market power analysis in the oligopolistic electricity markets. This paper presents a direct analytical approach to find the market equilibrium based on a supply function game model. The model is exploited to undertake a sensitivity analysis of the producer surplus with reference to the line flow limits under a DC power flow model for network representation. Two different kinds of indices, that can capture the market power arising under network constraints, are proposed. The first set of indices is the location privilege (LP), that measure the effect of the generators positioning in the grid on their surplus under perfect competition. The second set is for the network market power (NMP) indices that take into account the strategic behaviors of the producers that may take advantage of the congestion of the transmission lines. The indices allow for a ranking of the lines in terms of the market power they can induce and, in this respect, they may help the market regulator to focus on the network weakness in terms of the possible market outcomes under the market power behaviors from the supply side. The application of the proposed indices is illustrated with reference to the IEEE 30-bus test system. (author)

Analysis of future nuclear power plants competitiveness with stochastic methods

International Nuclear Information System (INIS)

Feretic, D.; Tomsic, Z.

2004-01-01

To satisfy the increased demand it is necessary to build new electrical power plants, which could in an optimal way meet, the imposed acceptability criteria. The main criteria are potential to supply the required energy, to supply this energy with minimal (or at least acceptable) costs, to satisfy licensing requirements and be acceptable to public. The main competitors for unlimited electricity production in next few decades are fossil power plants (coal and gas) and nuclear power plants. New renewable power plants (solar, wind, biomass) are also important but due to limited energy supply potential and high costs can be only supplement to the main generating units. Large hydropower plans would be competitive under condition of existence of suitable sites for construction of such plants. The paper describes the application of a stochastic method for comparing economic parameters of future electrical power generating systems including conventional and nuclear power plants. The method is applied to establish competitive specific investment costs of future nuclear power plants when compared with combined cycle gas fired units combined with wind electricity generators using best estimated and optimistic input data. The bases for economic comparison of potential options are plant life time levelized electricity generating costs. The purpose is to assess the uncertainty of several key performance and cost of electricity produced in coal fired power plant, gas fired power plant and nuclear power plant developing probability distribution of levelized price of electricity from different Power Plants, cumulative probability of levelized price of electricity for each technology and probability distribution of cost difference between the technologies. The key parameters evaluated include: levelized electrical energy cost USD/kWh,, discount rate, interest rate for credit repayment, rate of expected increase of fuel cost, plant investment cost , fuel cost , constant annual

Competition, regulation, and energy efficiency options in the electricity sector: Opportunities and challenges in developing countries

Science.gov (United States)

Phadke, Amol Anant

This dissertation explores issues related to competition in and regulation of electricity sectors in developing countries on the backdrop of fundamental reforms in their electricity sectors. In most cases, electricity sector reforms promoted privatization based on the rationale that it will lower prices and improve quality. In Chapter 2, I analyze this rationale by examining the stated capital cost of independent (private) power producer's (IPPs) power projects in eight developing countries and find that the stated capital cost of projects selected via competitive bidding is on an average about 40% to 60% lower than that of the projects selected via negotiations, which, I argue, represents the extent to which the costs of negotiated projects are overstated. My results indicate that the policy of promoting private sector without an adequate focus on improving competition or regulation has not worked in most cases in terms of getting competitively priced private sector projects. Given the importance of facilitating effective competition or regulation, In Chapter 3, I examine the challenges and opportunities of establishing a competitive wholesale electricity market in a developing country context. I model a potential wholesale electricity market in Maharashtra (MH) state, India and find that it would be robustly competitive even in a situation of up-to five percent of supply shortage, when opportunities for demand response are combined with policies such as divestiture and requiring long-term contracts. My results indicate that with appropriate policies, some developing countries could establish competitive wholesale electricity markets. In Chapter 4, I focus on the demand side and analyze the cost effectiveness of improving end-use efficiency in an electricity sector with subsidized tariffs and electricity shortages and show that they offer the least expensive way of reducing shortages in Maharashtra State, India. In Chapter 5, I examine the costs of reducing carbon

Analysis of the competition situation in the Danish and Norwegian retail market for electric power

International Nuclear Information System (INIS)

2005-01-01

In connection with the revision of the Danish Energy Act, Energitilsynet (The Danish Energy Regulatory Authority DERA) has worked out directions for how to determine the electric power prices for customers whose annual consumption is less than 100 000 kWh and hourly metered customers with so-called obliged supply agreements. The directions were first applied in the first quarter of 2005 and led to down-regulation of prices for a number of supply companies. The analysis shows that the competition works satisfactorily and should rather be supplied with other steps such as increased information. Moreover the analysis points out that the price regulation that is currently done cannot easily be combined with the goal of a free electricity market. Price regulation will hamper new business start-ups and innovation, in addition to the fact that market-based contracts run the risk of being ousted. The method that is now in use in the price regulation is questioned. The Energy Authority obtains reference figures for mark-up, for one thing, from the Norwegian Competition Authority. The emphasis placed on the Norwegian reference figures is not known. But a direct comparison is difficult because the consumption figures are different.

Nuclear power: A competitive option? Annex 3

International Nuclear Information System (INIS)

Bertel, E.; Wilmer, P.

2002-01-01

Because the future development of nuclear power will depend largely on its economic performance compared to alternatives, the OECD Nuclear Energy Agency (NEA) investigates continuously the economic aspects of nuclear power. This paper provides key findings from a series of OECD studies on projected costs of generating electricity and other related NEA activities. It addresses the cost economics necessary for nuclear units to be competitive, and discusses the challenges and opportunities currently faced by nuclear power. (author)

The impact of power market structure on CO2 cost pass-through to electricity prices under quantity competition. A theoretical approach

International Nuclear Information System (INIS)

Sijm, J.; Chen, Y.; Hobbs, B.F.

2012-01-01

We present a theoretical analysis of the impact of power market structure on the pass-through rate (PTR) of CO2 emissions trading (ET) costs on electricity prices. Market structure refers in particular to the number of firms active in the market and the intensity of oligopolistic competition as measured by the conjectural variation, as well as to the functional form of the power demand and supply curves. In addition, we analyse briefly the impact of other power market-related factors on the PTR of carbon costs to electricity prices. These include in particular the impact of ET-induced changes in the merit order of power generation technologies and the impact of pursuing other market strategies besides maximising generator profit, such as maximising market shares or sales revenues of power companies. Each of these factors can have a significant impact on the rate of passing-through carbon costs to electricity prices.

Energy and environmental efficiency in competitive power markets

International Nuclear Information System (INIS)

Warwick, W.M.

1995-02-01

For years the electric utility industry operated as a regulated monopoly, largely immune to market forces except those of competing fuels. That era came to an end with the Public Utilities Regulatory Policy Act (PURPA) of 1974, which created a market for non-utility generated power. Within twenty years, non-regulated, non-utility generators had become the primary supplier of new energy resources. Their market power is matched by their political power, as evidenced in the Energy Policy Act of 1994 (EPAct), which requires open access to utility transmission lines to facilitate inter-utility bulk power sales. The conventional wisdom is that active wholesale power markets with competition among alternative generators will lead to lower power-development costs and cheaper retail power prices. The trend towards alternative bulk power sources at low prices intersects with large retail power customers' interest in accessing alternative power supplies. In most cases, these alternatives to local utilities are at a lower cost than retail rates. For the most part, proponents of generation competition have remained silent about potential environmental consequences. However, skeptics of increased competition, including major environmental groups, cite environmental impacts among their concerns. This report examines these concerns

CO2 Price Impacts on Nuclear Power Plant Competitiveness in Croatia

International Nuclear Information System (INIS)

Tomsic, Z.; Pasicko, R.

2010-01-01

Long term power system planning faces growing number of concerns and uncertainties, which is especially true for nuclear power plants due to their high investment costs and financial risk. In order to analyze competitiveness of nuclear power plants and optimize energy mix, existing models are not sufficient anymore and planners need to think differently in order to face these challenges. Croatia will join EU ETS (European Emission Trading Scheme) with accession to EU (probably in 2012). Thus, for Croatian electrical system it is very important to analyze possible impacts of CO 2 emissions. Analysis presented in this paper is done by electricity market simulation model PLEXOS which was used for modelling Croatian electrical system during development of the Croatian Energy Strategy in 2008. Paper analyzes impacts of CO 2 price on competitiveness of nuclear power plant within Croatian power system between 2020 and 2025. Analyzes are focused on how nuclear power plant influences total emission from the power system regarding coal and gas prices, average electricity price regarding CO 2 , coal and gas prices price. Results of this paper are showing that with emissions from Energy strategy development scenario with two new coal power plants (600 MW each) and two new gas power plants (400 MW each) until 2020, Croatia does not meet Kyoto target due to this emissions from power system. On the other side, introduction of nuclear power plants presented in this paper (1000 MW instead of one coal and one gas power plant) means nearly 6.5 Mt CO 2 emissions less annually and gives possibility to achieve Kyoto target (as this reduced amount represents nearly 22 % of Croatian Kyoto target). Results are also showing how increase in CO 2 price is enhancing competitiveness of a nuclear power plant.(author).

Competitive energy markets and nuclear power. Can we have both, do we want either?

Energy Technology Data Exchange (ETDEWEB)

Thomas, Steve [Public Services International Research Unit (PSIRU), Business School, University of Greenwich, 30 Park Row, London SE10 9LS (United Kingdom)

2010-09-15

In 1987, the UK Conservative Party was re-elected promising to transform the electricity industry into a privatised competitive industry and to promote an expansion of nuclear power. Fulfilling both objectives was not possible. The nuclear plants were withdrawn from the sale and plans to build new plants were abandoned, but privatisation proceeded. In 2007, the Labour government began a new attempt to build nuclear plants to operate in the competitive electricity market, promising that no subsidies would be offered to them. By 2010, the utilities that were planning to build nuclear plants were beginning to suggest that 'support' in some form would be needed if they were to build new plants. More surprisingly, the energy regulator, Ofgem, cast doubt on whether a competitive wholesale electricity market would provide security of supply. In 1990, the UK government opted for a competitive electricity market over expanding nuclear power. Now, the option of opting for a competitive electricity market may not exist. However, this might not leave the way open for new nuclear plants. The expected cost of power from new nuclear plants is now so high that no more than one or two heavily subsidised plants will be built. (author)

Competitive energy markets and nuclear power: Can we have both, do we want either?

Energy Technology Data Exchange (ETDEWEB)

Thomas, Steve, E-mail: Stephen.thomas@gre.ac.u [Public Services International Research Unit (PSIRU), Business School, University of Greenwich, 30 Park Row, London SE10 9LS (United Kingdom)

2010-09-15

In 1987, the UK Conservative Party was re-elected promising to transform the electricity industry into a privatised competitive industry and to promote an expansion of nuclear power. Fulfilling both objectives was not possible. The nuclear plants were withdrawn from the sale and plans to build new plants were abandoned, but privatisation proceeded. In 2007, the Labour government began a new attempt to build nuclear plants to operate in the competitive electricity market, promising that no subsidies would be offered to them. By 2010, the utilities that were planning to build nuclear plants were beginning to suggest that 'support' in some form would be needed if they were to build new plants. More surprisingly, the energy regulator, Ofgem, cast doubt on whether a competitive wholesale electricity market would provide security of supply. In 1990, the UK government opted for a competitive electricity market over expanding nuclear power. Now, the option of opting for a competitive electricity market may not exist. However, this might not leave the way open for new nuclear plants. The expected cost of power from new nuclear plants is now so high that no more than one or two heavily subsidised plants will be built.

The Brazilian electric power industry restructuring: an evaluation of the competition through the contestable market theory

International Nuclear Information System (INIS)

Vinhaes, Elbia; Santana, Edvaldo de

1999-01-01

The central issue of debate was the need to align the energy sector's options and organization with changing global patterns of economic and social development, characterized by the increasing role played by the private sector, greater integration in the world economy, and new economic and social priorities such as efficiency, decentralization, deregulation, and a closer attention to environmental issues. The aim of the work is to evaluate the competition in the Brazilian electric power industry through the Contestable Market Theory proposed by Baumol

Competitive nuclear production on the nordic deregulated electricity market

International Nuclear Information System (INIS)

Bohl, T.

2000-01-01

The Nordic electricity market has been partly deregulated since 1994. Today only Denmark follows the timetable recommended by the European Union, while Sweden, Norway and Finland are completely deregulated. As in most countries, the production of electricity is deregulated while the distribution is still a monopoly. This deregulation of the electricity market has created a new situation for plant life management. In order to be competitive on the market it is important to cut cost down a level when the nuclear power companies earn money again. All means to cut cost have to be used while still maintaining safety and the possibilities for operation over at least 40+ years. The possibilities to invest in modernization are limited to the absolutely necessary modifications. All investments must be very thoroughly questioned and the money can only be spent where most benefit is gained. This means new prerequisites for the absolute necessary long-strategic planning. New safety requirements from the authorities have to be discussed between the industry and the authority. The requirement cost must be compared to the benefit to safety. The authority is today requested to carry out such analyses and do so in most cases. Since the electricity market is international the requirements of the authorities must be harmonized on the whole market. The political threat against nuclear power is serious in many countries and it is important to continue working with public acceptance and lobbying. Especially in Sweden a lot of effort is spent on trying to change the taxation of nuclear power. In the near future increasing electricity demand will make the prices go up to a level when nuclear power companies earn money again. The very serious worries about climate change will also strengthen the competitiveness of nuclear power. (author)

The effect of counter-trading on competition in electricity markets

International Nuclear Information System (INIS)

Dijk, Justin; Willems, Bert

2011-01-01

In a competitive electricity market, nodal pricing is the most efficient way to manage congestion. Counter-trading is inefficient as it gives the wrong long term signals for entry and exit of power plants. However, in a non-competitive market, additional entry will improve the competitiveness of the market, and will increase social benefit by reducing price-cost margins. This paper studies whether the potential pro-competitive entry effects could make counter-trading more efficient than nodal pricing. We find that this is unlikely to be the case, and expect counter-trading to have a negative effect on overall welfare. The potential benefits of additional competition (more competitive prices and lower production cost) do not outweigh the distortions (additional investment cost for the entrant, and socialization of the congestion cost to final consumers). - Research highlights: → 'Counter-trading' and 'nodal pricing' manage congestion in electric grids. → Nodal pricing gives superior locational prices. → Counter-trading induces extra investments in regions with a production surplus. → Extra investments improve competition, but are expected to be socially inefficient.

New rules for competition: Ontario to cap power plant emissions

International Nuclear Information System (INIS)

Anon.

1999-01-01

The Ontario government through the Dept. of the Environment announced on November 16, 1999 that it would cut the emissions from Ontario coal burning power plants that cause acid rain and smog. This announcement was a much anticipated clarification of the government's plans to clean up the power industry since the enactment of the Electricity Competition Act more than one year past. The announcement signals the beginning of a public discussion process between government and stakeholders on the environmental rules for electricity generation in Ontario. The Ontario government is expected to release draft regulations for controlling coal burning power plant emissions in the near future. Consulations with stakeholders on the regulations, as well as the rules for disclosure and labeling, are anticipated to begin in a few months. The announcement set out four principles for environmental performance in the competitive electricity market. Anti-smog requirements will be included in the stringent environmental requirements to be built into Ontario's new, competitive electricity market. The strong measures which the government will put into place when the market opens later in 2000 include: (1) regulations to cut smog and acid gas emissions for all Ontario electricity generators on the grid - these regulations will include Ontario Hydro's voluntary nitrogen oxide limits; (2) emission performance standards to define maximum acceptable emission levels for all generators wanting to sell in the Ontario market; (3) a framework to support opportunities to make greater use of more efficient, environmentally responsible technologies; and (4) disclosure requirements to ensure that electricity consumers can understand the environmental implications of their purchasing decisions

Institutional contexts of market power in the electricity industry

International Nuclear Information System (INIS)

Foer, A.A.

1999-01-01

Market power is widely recognized as one of the principal issues that must be dealt with if the electricity industry is to make the transition from regulation to competition. In this article, the author provides a legal and economic introduction to what the antitrust community means by market power and offers a primer on why market power is so central an issue in the electricity industry. Finally and most importantly, he offers comments on the institutional contexts of market power, exploring a process which he calls Shermanization that helps explain the institutional aspect of moving from regulation to competition and holds implications for where oversight should reside during this complex transition

Entry into the electricity market: Uncertainty, competition, and mothballing options

Energy Technology Data Exchange (ETDEWEB)

Takashima, Ryuta [Department of Nuclear Engineering and Management, University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-8656 (Japan)], E-mail: takashima@n.t.u-tokyo.ac.jp; Goto, Makoto [Department of Industrial and Management Systems Engineering, Waseda University, 3-4-1 Okubo, Shinjyuku-ku, Tokyo 169-8555 (Japan); Kimura, Hiroshi; Madarame, Haruki [Nuclear Professional School, University of Tokyo, 2-22 Shirane, Shirakata, Tokai-mura, Naka-Gun, Ibaraki-ken 319-1188 (Japan)

2008-07-15

The present paper analyzes the entry strategies into the electricity market of two firms that have power plants under price uncertainty and competition. We consider the symmetric and asymmetric two firms, which have either a thermal power plant or a nuclear power plant. The differences between the thermal power plant and the nuclear power plant, such as the cost structure and operational flexibility are modeled. The threshold values of market entry are calculated for each firm with either the thermal power plant or the nuclear power plant as the leader or the follower. We show the dependence of cost structures on entry thresholds of the leader and the follower into the electricity market. For various market and cost conditions, the diagrams of the leader are also shown.

Entry into the electricity market: Uncertainty, competition, and mothballing options

International Nuclear Information System (INIS)

Takashima, Ryuta; Goto, Makoto; Kimura, Hiroshi; Madarame, Haruki

2008-01-01

The present paper analyzes the entry strategies into the electricity market of two firms that have power plants under price uncertainty and competition. We consider the symmetric and asymmetric two firms, which have either a thermal power plant or a nuclear power plant. The differences between the thermal power plant and the nuclear power plant, such as the cost structure and operational flexibility are modeled. The threshold values of market entry are calculated for each firm with either the thermal power plant or the nuclear power plant as the leader or the follower. We show the dependence of cost structures on entry thresholds of the leader and the follower into the electricity market. For various market and cost conditions, the diagrams of the leader are also shown

Market power and storage in electricity markets

International Nuclear Information System (INIS)

Skaar, Jostein

2004-05-01

Market power in liberalised electricity markets dominated by hydropower is analyzed in four chapters. The existing literature on competition in hydropower markets is briefly presented and examined. Chapter 1 discusses the effects of market power in the context of acquisitions in a situation where transmission capacity is constrained. Chapter 2 and 3 elaborate on the issue of competition and market power when water inflow is uncertain, and finally Chapter 4 focuses on the supply function equilibrium model in the context of a hydropower market

Electric power bidding model for practical utility system

Directory of Open Access Journals (Sweden)

M. Prabavathi

2018-03-01

Full Text Available A competitive open market environment has been created due to the restructuring in the electricity market. In the new competitive market, mostly a centrally operated pool with a power exchange has been introduced to meet the offers from the competing suppliers with the bids of the customers. In such an open access environment, the formation of bidding strategy is one of the most challenging and important tasks for electricity participants to maximize their profit. To build bidding strategies for power suppliers and consumers in the restructured electricity market, a new mathematical framework is proposed in this paper. It is assumed that each participant submits several blocks of real power quantities along with their bidding prices. The effectiveness of the proposed method is tested on Indian Utility-62 bus system and IEEE-118 bus system. Keywords: Bidding strategy, Day ahead electricity market, Market clearing price, Market clearing volume, Block bid, Intermediate value theorem

The Relationship Between Electricity Price and Wind Power Generation in Danish Electricity Markets

DEFF Research Database (Denmark)

Hu, Weihao; Chen, Zhe; Bak-Jensen, Birgitte

2010-01-01

of competitive electricity markets in some ways, is chosen as the studied power system. The relationship between the electricity price (both the spot price and the regulation price) and the wind power generation in an electricity market is investigated in this paper. The spot price, the down regulation price...... and the up regulation price generally decreases when the wind power penetration in the power system increases. The statistical characteristics of the spot price for different wind power penetration are analyzed. The findings of this paper may be useful for wind power generation companies to make the optimal...... bidding strategy and may be also useful for the optimal operation of modern power systems with high wind power penetrations....

The electric power sector in Iceland

International Nuclear Information System (INIS)

Ingimarsson, J.

1992-01-01

In Iceland the government must give permission for the building of a power station etc. but in practise the power plant administrators determine the tariffs. The structure of electric power supply mirrors a strong engagement on the part of the state and the local authorities. Almost all the power plants and distribution systems are state owned or owned by both the state and the local authorities, and so constitute a monopoly, producing 93% of the total amount of electricity supply. Government policy in this field, the Icelandic electric power distribution system and the setting of electricity prices are briefly described. It is claimed that there would be economical advantages in restructuring the distribution network and that the government favours an increase in possibilities for competition and making legislative changes. This will mean that in the future the market will play a more important role and that power plant administrators must review their duties regarding consumer satisfaction, tariffs etc. (AB)

Competition in the electric industry

International Nuclear Information System (INIS)

Jones, Mel

1998-01-01

Deregulation of the electric power industry is changing the 'personality' of utilities and the way they operate in order to survive in a more competitive marketplace. This paper will identify and discuss key issues NAC International believes will arise as the nuclear industry responds to deregulation. The regulatory treatment of such issues as retail wheeling, recovery of stranded costs, divestiture of assets and securitization will have a significant impact on how utilities, particularly those with nuclear assets, proceed into the new marketplace. While some will survive as a result of innovative thinking, cost control, and entrance into new niche markets, others will be forced to reassess their viability altogether. Increased mergers and acquisitions and early plant closures are potential consequences of these struggles. Meanwhile, innovative companies will develop and enter into new nuclear markets including most notably the acquisition of generating assets. Other key drivers that will significantly impact the competitiveness of nuclear versus other fuels will be the resolution of the nuclear waste issue, the reduction of O and M and decisions regarding whether to make expensive capital additions. Additionally, this paper will present an overview of key regulatory and legislative initiatives impacting electricity. Finally, this paper will examine the roles of regulating bodies such as the Nuclear Regulatory Commission, Federal Energy Regulatory Commission, and state utility commissions, and will provide an outlook for further legislative and regulatory actions in this competitive environment. (author)

Liberalization of power generation sector in the Croatian electricity market

International Nuclear Information System (INIS)

Viskovic, Alfredo

2005-01-01

The electricity market liberalization and the restructuring of power utilities eventually leads to the establishment of a single electricity market in Europe, which is especially important for efficiency gains in electricity generation coupled with increased security of supply, economic competitiveness and fulfillment of environmental requirements. The European electricity market Directives as well as the Energy Community Treaty for South East Europe (legislative Menu) have remarkable impact on the restructuring of the Croatian power sector and the development of electricity generation. The Croatian model of restructuring includes legal un bundling (in the ownership of one holding company - Hrvatska Elektroprivreda (HEP)). The operation of HEP Group and its subsidiaries in the conditions of partially opened electricity market in an important element that shapes the interactions of competitive activities and regulated activities in the environment influenced by exogenous factors a thirteen percent electricity are controlled by the Energy Market Operator (MO), the Transmission System Operator (TSO) and the Energy Regulatory Agency (CERA). The introduction of eligible procedures and newly created operative procedures for power system operation, are creating completely new conditions for competition in the power generation sector, where almost all power plants are owned by HEP. New generating capacities in Croatia can be built through tendering and licensing procedures carried out by the Regulator. Electricity prices are still regulated by the Government (below the cost reflective level), there is a small share of industrial consumers and the annual electricity production is 12 TWh, with relatively large share of hydro plants. All these have implications on the development of the power generation sector in Croatia as well as on electricity market operation. The subject matter of this paper is an impact of power system restructuring and electricity market opening on the

The role of nuclear power and other options in competitive electricity market study using message model

International Nuclear Information System (INIS)

Scorpio Sri Herdinie and Edi Sartono

2003-01-01

The electricity demand in Indonesia is very high due to the National Economic Development based on industrialization and supported by a strong agriculture base. It can be noted that in the last five years, the annual electricity growth rate has been reaching around 15% per annum. Though during the economic crisis the electricity demand have time to reduction. Start early 2000s the economic growth in Indonesia will gradually increase. As a consequence, the electricity growth rate also increase in the next coming decades. MESSAGE (Model for Energy Supply Strategy Alternatives and their General Environmental Impacts) is a model designed for the optimization of energy system(i.e. energy supplies and utilization). The goal of this study is to support the national planning and decision making process in the energy and electricity sector in Indonesia with regard to the economic, health, environmental and safety aspects. The objective of this study is to analyse the role of Nuclear Power Plant in the whole energy systems by introducing the new electricity regulation and structure in the market. Seen that Nuclear Power Plant will be enter the Java Bali system in the period between 2015-2020. and will dominate the addition of capacities by the end period of study (year 2020-2025). Nuclear energy has very important long term roles in the energy scenario and it is possible to do the market competitive when the Multi buyer Multi Seller (MBMS) will be done in the system electricity in Indonesia(the government has changed the target of MBMS realization into 2007). (author)

Empirical assessment of market power in the Alberta wholesale electricity market

International Nuclear Information System (INIS)

Qu, F.

2007-01-01

In the 1990s, many countries began to unbundle regulated electricity monopolies into generation, transmission, distribution and retail companies. Transmission and distribution services remained regulated, but generation and retail services were open for competition. Wholesale and retail electricity markets were created. This paper presented a newly developed competitiveness index specifically for the Alberta market through a simple and standard economic approach. The Alberta Electric Utilities Act came into effect in January 1996. This paper described how the Alberta wholesale electricity market works and demonstrated how to model market power in the electricity market. In this study, power generating companies in Alberta were divided into 2 groups. The first group contained the 5 largest firms called strategic firms, while the other group contained the small generating companies called non-strategic firms or the competitive fringe. In the sample years 2003 and 2004, strategic firms withheld capacity when price was above marginal cost and behaved within the range of competitive pricing. They were more likely to price competitively than to use unilateral market power prices. In addition, firms had higher price-cost margins during the off-peak season. This paper explained in detail the reason for this unusual off-peak pattern. The index to measure a firm's strategic behaviour in the Alberta electricity market was developed according to price-cost margin data where firm-behaviour effect was distinguished from the demand-elasticity effect. It was concluded that policy-makers and regulations should consider the magnitude and source of market power when designing market structure, rules and trading practices. 9 refs., 5 tabs., 2 figs

Developing an economic performance system to enhance nuclear power plant competitiveness

International Nuclear Information System (INIS)

2002-01-01

In 1999 about 16% of the world's electricity was produced by nuclear power, and the total worldwide operating experience of nuclear power plants was over 9200 reactor-years. Some 16 countries are dependent on nuclear power for more than 25% of their electricity generation. In some countries deregulation of the electricity market has either happened or is currently ongoing, while in others it is planned for the future. Nevertheless, many countries are already facing open electricity markets and operating costs are under unprecedented pressure, with competition expected to come soon to the nuclear industry worldwide. To a certain extent, however, the industry has already prepared or is currently preparing to face competition. This report is primarily intended for nuclear power plant and utility managers. It discusses the means and principal issues for the development of the nuclear economic performance international system (NEPIS), which should enhance nuclear power plant competitiveness. The following issues are addressed: The major transformations occurring in the electricity generation industry that require reductions in operations and maintenance costs at nuclear utilities; The methods that nuclear plant management use to identify and justify the economic optimum level of a plant and its use of resources; The value of collecting cost and performance data and the analysis techniques that use that data; The cost data required to be collected; The difficulty of collecting data with existing cost accounting systems; The new cost accounting and collection systems that will be required, The cost effectiveness of the overall process. This report also presents the preliminary results of a pilot project that was established to collect cost data on a few nuclear power plants and was used to verify the adequacy of the definitions and terminology set for NEPIS

Perspectives of the electric power industry amid the transforming global power generation markets

Science.gov (United States)

Makarov, A. A.; Mitrova, T. A.; Veselov, F. V.; Galkina, A. A.; Kulagin, V. A.

2017-10-01

A scenario-based prognosis of the evolution of global power generation markets until 2040, which was developed using the Scaner model-and-information complex, was given. The perspective development of fuel markets, vital for the power generation industry, was considered, and an attempt to predict the demand, production, and prices of oil, gas, coal, and noncarbon resources across various regions of the world was made. The anticipated decline in the growth of the global demand for fossil fuels and their sufficiency with relatively low extraction expenses will maintain the fuel prices (the data hereinafter are given as per 2014 prices) lower than their peak values in 2012. The outrunning growth of demand for electric power is shown in comparison with other power resources by regions and large countries in the world. The conditions of interfuel competition in the electric power industry considering the changes in anticipated fuel prices and cost indicators for various power generation technologies were studied. For this purpose, the ratios of discounted costs of electric power production by new gas and coal TPPs and wind and solar power plants were estimated. It was proven that accounting the system effects (operation modes, necessary duplicating and reserving the power of electric power plants using renewable energy sources) notably reduces the competitiveness of the renewable power industry and is not always compensated by the expected lowering of its capital intensity and growth of fuel for TPPs. However, even with a moderate (in relation to other prognoses) growth of the role of power plants using renewable energy sources, they will triple electric power production. In this context, thermal power plants will preserve their leadership covering up to 60% of the global electric power production, approximately half using gas.

Privatisation electric power sector in Pakistan: some important issues

International Nuclear Information System (INIS)

Ghafoor, A.; Weiss, J.

1998-01-01

This discussion paper highlights important issues relating to the privatisation of Pakistan's electric power sector. Salient features of the electric power sector in Pakistan, factors affecting the economic performance of this sector, the partial privatisation policy adopted by Pakistan, ongoing private power projects, and current privatisation policy are examined. The arguments for competition are raised, and alternative policy reforms the are considered

The Diagnostic Challenge Competition: Probabilistic Techniques for Fault Diagnosis in Electrical Power Systems

Science.gov (United States)

Ricks, Brian W.; Mengshoel, Ole J.

2009-01-01

Reliable systems health management is an important research area of NASA. A health management system that can accurately and quickly diagnose faults in various on-board systems of a vehicle will play a key role in the success of current and future NASA missions. We introduce in this paper the ProDiagnose algorithm, a diagnostic algorithm that uses a probabilistic approach, accomplished with Bayesian Network models compiled to Arithmetic Circuits, to diagnose these systems. We describe the ProDiagnose algorithm, how it works, and the probabilistic models involved. We show by experimentation on two Electrical Power Systems based on the ADAPT testbed, used in the Diagnostic Challenge Competition (DX 09), that ProDiagnose can produce results with over 96% accuracy and less than 1 second mean diagnostic time.

Negative Effects of Antimonopoly Regulation on the Russian Electric Power Industry

Directory of Open Access Journals (Sweden)

Elena NEPRINTSEVA

2017-07-01

Full Text Available With the antimonopoly regulation in the domestic economy getting more stringent an analysis of the current measures of antimonopoly regulation in terms of their efficiency is now becoming ever more relevant. The aim of the study - analyze how the measures of antimonopoly regulation affect competitive relationships in the electric power industry. The following methods have been used in this work: empirical method, cause-effect method and scientific abstraction method. The article sets out an analysis of the antimonopoly regulation measures that the antimonopoly authority applies. It also provides an assessment of consequences that follow from such methods being applied for the promotion of competitive relationships on the market of electric power and capacity. A conclusion has been reached that the antimonopoly regulation measures being applied impede the progress of competitive relationships on the market of electric power and capacity. The continuing process of reformation in electric power industry aims to liberalize relationships in the area of electric power production. Yet, as a result of this process, generating capacities are becoming increasingly more concentrated mainly around state companies. This is mainly caused by the lack of certainty regarding the results of the industry reformation and a more stringent state regulation over the last years of the reforms. At the same time, for the purposes of limiting the market force, measures of antimonopoly regulation are being applied to generating companies. Such measures have an adverse effect on competitive relationships and stimulate further concentration.

Market efficiency, competition, and communication in electric power markets. Experimental results

International Nuclear Information System (INIS)

Chapman, D.; Mount, T.D.; Vossler, C.A.; Barboni, V.; Thomas, R.J.; Zimmerman, R.D.

2004-01-01

Economic theory gives no clear indication of the minimum number of producers necessary for a market to define competitive price-quantity equilibria, which approximate price equal to marginal cost. Previous work and Federal Energy Regulatory Commission (FERC) guidelines generally suggest that 6-10 suppliers may be workably competitive. Our experiments with PowerWeb suggest that a higher number of suppliers may be necessary to approximate competitive market solutions, this in the absence of any communication among producers. As communications rules are altered to parallel differing types of antitrust enforcement, market results with 24 participants approach pure monopoly values

Operation of Modern Distribution Power Systems in Competitive Electricity Markets

DEFF Research Database (Denmark)

Hu, Weihao

, DG units, loads and electricity price are studied. Further, the effect of energy storage systems will be considered, and an optimal operation strategy for energy storage devices in a large scale wind power system in the electricity market is proposed. The western Danish power system, which has large...... strategy for trading wind power in the Danish short-term electricity market in order to minimize the imbalance costs for regulation. A load optimization method based on spot price for demand side management in Denmark is proposed in order to save the energy costs for 3 types of typical Danish consumers...... maximum profit of the BESS is proposed. Two kinds of BESS, based on polysulfide-bromine (PSB) and vanadium redox (VRB) battery technologies, are studied. Optimal operation strategies of PEV in the spot market are then proposed in order to decrease the energy cost for PEV owners. Furthermore...

Sectoral panorama: the electric power sector in Europe

International Nuclear Information System (INIS)

Mons, L.

2003-10-01

This study takes stock on the main european markets to help the electric power companies in their decisions and investments. The first part presents the electric power sector structure in Europe. The second part is devoted to the market evolution for the different european markets (german, french, british, italian and spanish) with an analysis of the retail prices, the competition and the evolution perspectives. The third part presents the highlights in the electric power sector between 2001 and the middle of 2003. The enterprises management and strategies are presented in the fourth part. In the last part the document analyzes the financial performances of the sector and the electric power companies. (A.L.B.)

Feedback, competition and stochasticity in a day ahead electricity market

International Nuclear Information System (INIS)

Giabardo, Paolo; Zugno, Marco; Pinson, Pierre; Madsen, Henrik

2010-01-01

Major recent changes in electricity markets relate to the process for their deregulation, along with increasing participation of renewable (stochastic) generation e.g. wind power. Our general objective is to model how feedback, competition and stochasticity (on the production side) interact in electricity markets, and eventually assess what their effects are on both the participants and the society. For this, day ahead electricity markets are modeled as dynamic closed loop systems, in which the feedback signal is the market price. In parallel, the Cournot competition model is considered. Mixed portfolios with significant share of renewable energy are based on stochastic threshold cost functions. Regarding trading strategies, it is assumed that generators are looking at optimizing their individual profits. The point of view of the society is addressed by analyzing market behavior and stability. The performed simulations show the beneficial effects of employing long term bidding strategies for both generators and society. Sensitivity analyses are performed in order to evaluate the effects of demand elasticity. It is shown that increase in demand elasticity reduces the possibility for the generators to exploit their market power. Furthermore, the results suggest that introduction of wind power generation in the market is beneficial both for the generators and the society.

Feedback, competition and stochasticity in a day ahead electricity market

Energy Technology Data Exchange (ETDEWEB)

Giabardo, Paolo; Zugno, Marco; Pinson, Pierre; Madsen, Henrik [DTU Informatics, Technical University of Denmark, Richard Petersens Plads 305, DK-2800 Kgs. Lyngby (Denmark)

2010-03-15

Major recent changes in electricity markets relate to the process for their deregulation, along with increasing participation of renewable (stochastic) generation e.g. wind power. Our general objective is to model how feedback, competition and stochasticity (on the production side) interact in electricity markets, and eventually assess what their effects are on both the participants and the society. For this, day ahead electricity markets are modeled as dynamic closed loop systems, in which the feedback signal is the market price. In parallel, the Cournot competition model is considered. Mixed portfolios with significant share of renewable energy are based on stochastic threshold cost functions. Regarding trading strategies, it is assumed that generators are looking at optimizing their individual profits. The point of view of the society is addressed by analyzing market behavior and stability. The performed simulations show the beneficial effects of employing long term bidding strategies for both generators and society. Sensitivity analyses are performed in order to evaluate the effects of demand elasticity. It is shown that increase in demand elasticity reduces the possibility for the generators to exploit their market power. Furthermore, the results suggest that introduction of wind power generation in the market is beneficial both for the generators and the society. (author)

Security of supply in competitive electricity markets: The Nordic power market

International Nuclear Information System (INIS)

Singh, Balbir

2004-01-01

It is well known that in the absence of a complete set of markets or under conditions of monopoly and imperfect competition, optimal provision of quality can not be taken for granted. Market set in the restructured electricity markets is not complete, physical networks per definition are natural monopolies, market-power issues are yet to be resolved, not all the services supplied through the restructured frameworks are private goods and risk of government intervention is high during the times when market prices signal shortages. Sole reliance on the energy-only markets for optimal provision of security of supply under such conditions is mistaken. On the other hand, centralization of decisions for provision of reserve capacity, such as the gas-reserve capacity proposal in the Norwegian system is not an efficient substitute for missing or imperfect markets. The solution lies in the design of permanent market-mechanisms that enhance the ability of energy-only markets to handle the medium and long-term security of supply. A carefully designed reserve energy certificates mechanism is a viable alternative in this context. (Author)

An options model for electric power markets

International Nuclear Information System (INIS)

Ghosh, Kanchan; Ramesh, V.C.

1997-01-01

The international electric utility industry is undergoing a radical transformation from an essentially regulated and monopolistic industry to an industry made uncertain with impending deregulation and the advent of competitive forces. This paper investigates the development of an options market for bulk power trading in a market setup while considering power system planning and operational constraints and/or requirements. In so doing it considers the different market based financial derivative instruments while can be used to trade electrical power in bulk and examines how established tools such as Optimal Power Flow (OPF) may be applied in helping to develop a price for bulk power transactions under a market based setup. (Author)

Electric power industry deregulation in the United States: impacts on U.S. and Canadian markets

Energy Technology Data Exchange (ETDEWEB)

Hall, G.R. [Putnam, Hayes and Bartlett, Inc., Cambridge, MA (United States)

1996-10-01

An overview of the restructuring and deregulation of the United States electric power industry and the implications for the North American natural gas industry was presented. Electric power restructuring and its effect on wholesale and retail competition was discussed. It was suggested that although in the short term electric power deregulation impacts negatively on the natural gas industry, the long term impacts are favourable. The short term impact on the natural gas industry will mean increased competition and downward pressure on gas prices. In contrast, the long term impact could mean increased reliance on gas for electric power generation and convergence of the electric power and natural gas industries.

The economics of new nuclear power plants in liberalized electricity markets

International Nuclear Information System (INIS)

Linares, Pedro; Conchado, Adela

2013-01-01

Even after Fukushima, the nuclear debate is strong in many countries, with the discussion of its economics being a significant part of it. However, most of the estimates are based on a levelized-cost methodology, which presents several shortcomings, particularly when applied to liberalized electricity markets. Our paper provides results based on a different methodology, by which we determine the break-even investment cost for nuclear power plants to be competitive with other electricity generation technologies. Our results show that the cost competitiveness of nuclear power plants is questionable, and that public support of some sort would be needed if new nuclear power plants are to be built in liberalized markets. - Highlights: • We propose an alternative more realistic than LEC for the evaluation of the economics of nuclear electricity. • Our results show that the cost competitiveness of nuclear power plants is questionable. • Building nuclear power plants will require public support, particularly regarding risk management. • These results are less optimistic than previous, LEC-based, estimates

Reliability evaluation of deregulated electric power systems for planning applications

International Nuclear Information System (INIS)

Ehsani, A.; Ranjbar, A.M.; Jafari, A.; Fotuhi-Firuzabad, M.

2008-01-01

In a deregulated electric power utility industry in which a competitive electricity market can influence system reliability, market risks cannot be ignored. This paper (1) proposes an analytical probabilistic model for reliability evaluation of competitive electricity markets and (2) develops a methodology for incorporating the market reliability problem into HLII reliability studies. A Markov state space diagram is employed to evaluate the market reliability. Since the market is a continuously operated system, the concept of absorbing states is applied to it in order to evaluate the reliability. The market states are identified by using market performance indices and the transition rates are calculated by using historical data. The key point in the proposed method is the concept that the reliability level of a restructured electric power system can be calculated using the availability of the composite power system (HLII) and the reliability of the electricity market. Two case studies are carried out over Roy Billinton Test System (RBTS) to illustrate interesting features of the proposed methodology

Capacity competition in electricity markets

International Nuclear Information System (INIS)

Crampes, Claude; Creti, Anna

2005-01-01

The article analyzed a two-stage game where capacity constrained electricity generators first choose how much capacity they make available and then compete in a uniform-rice auction. It is studied how capacity withholding can be used strategically to enforce market power and how uniform auctions in the price game change the results of capacity constrained competition models. The uniform auction procedure gives strong incentives to capacity restriction. At equilibrium, however, power shortage never occurs. Though auctions in electricity markets have already been studied by several economists, yet an important feature of spot trading is the capacity availability decision. In fact, for technical reasons, such as equipment maintenance or failures, the installed capacity may not work at maximum operating level and the spot market rules oblige generators to announce which plants they are willing to use and simultaneously their offer prices. Beside technical reasons, the so-called 'capacity declarations' also offer a strategic instrument for firms: by restricting capacity, operators can benefit from scarcity rents. Assessing whether generators withhold capacity is an intriguing issue for real electricity markets, though proving it is a difficult task. Several theoretical papers show that generators are able to keep wholesale prices high as compared to their generation costs. In our model, a generator is not obliged to declare all installed capacity as available, but decides on the amount of MW of electricity that is available. Hence the available capacity is an endogenous variable while the installed one is exogenous. The distinction between installed capacities and 'available' capacities allows to explain clearly whether generators exert market power by declaring unavailable some production units. Although we find multiple sub game perfect equilibria that cannot be eliminated by Pareto-dominance, all the outcomes are characterized by market price at the highest

Nuclear power industry buckles down to meet the competition

International Nuclear Information System (INIS)

Strauss, S.D.

1996-01-01

This article reports that owners of nuclear plants are beginning to realize that the bottom line dominates in the developing electricity marketplace. Embedded in recent successes is the emerging reorganization of the industry along more functional lines. From the standpoint of generating cost, nuclear power has had an up and down record. Reversing the upward trend that prevailed since the late 1970s, variable production costs at US nuclear stations have now fallen for seven consecutive years. The change has been spurred by the loss of its earlier economic edge and the reality that a deregulated energy market is fast approaching. Comparison with other electric-energy sources shows the need to continue the recent trend for nuclear to remain competitive. This point is underscored by Neil Carnz, CEO of Wolf Creek Nuclear Operating Corp. A leading force behind creation of a utility business alliance, Carnz notes that high capital costs place nuclear plants at a great disadvantage in the market, and labor is the prime area for offsetting it. Stating that some 130,000 people draw paychecks from nuclear-power production, including consultants, some non-utility people, and even regulators, the author contends that this number will have to be reduced by 40,000 to make nuclear power competitive with other forms of electric generation

Green marketing in the Massachusetts electric company retail competition pilot program

Energy Technology Data Exchange (ETDEWEB)

Rothstein, S.M.; Fang, J.M.

1997-10-01

With electric industry restructuring initiatives being introduced on the state and federal levels, retail access pilot programs serve an important function for examining competitive market issues, as well as marketing strategies and customer reactions to different power supply options. The experience gained through these pilots provides important insights into future power market operations, including the market for green power. The Massachusetts Electric Company`s (MECo`s) Choice: New England pilot for residential and small-business customers was a voluntary program developed primarily to test the billing and metering logistics that distribution companies will need in the competitive market. The pilot also offered a preview of program implementation and marketing under customer choice. It was the first retail competition pilot to explicitly include green power options in program design. The MECo pilot`s energy suppliers were selected through the issuance of a request for proposals (RFP). Respondents were asked to submit bids in one or more of three energy supply categories-price, green, and other options. These options were developed by the pilot administrator through internal meetings, discussions with state officials and other stakeholders, and a review of information from other similar pilots. For the green option, the pilot administrator did not establish a green standard. Instead, suppliers were allowed to submit offers that promoted environmental stewardship. Customer response to the different green options are reported. The pilot results clearly demonstrate that, in a competitive situation, there is interest in a variety of energy supply options, including green options. 2 tabs.

Wind power planning and operational benefits and issues in evolving competitive markets

International Nuclear Information System (INIS)

Milligan, M.R.

2000-01-01

The paper discusses the advantages of wind energy generators for both short periods (hours to days) and for longer periods. The value of wind power in the light of the increasing level of risk that owners of generators will face in the new electricity market is also discussed. It is claimed that only now are we beginning to understand the issues associated with the use of large-scale wind power plants in regulated markets and this is coming about through a combination of both experience and computer modelling. As the electric power market becomes increasingly competitive, it is necessary to adapt our knowledge base to cope with the new market structure and to appreciate the associated risks and how they can be mitigated by, say, good siting. The importance of power transmission from wind power generators is emphasised: only if transmission access is afforded to all technologies will the competition succeed

Optimal Operation of Electric Vehicles in Competitive Electricity Markets and Its Impact on Distribution Power Systems

DEFF Research Database (Denmark)

Hu, Weihao; Chen, Zhe; Bak-Jensen, Birgitte

2011-01-01

represent the future of electricity markets in some ways, is chosen as the studied power system in this paper. The impact of the optimal operation strategy for electric vehicles together with the optimal load response to spot market price on the distribution power system with high wind power penetrations...... are also discussed in the paper. Simulation results show that the proposed optimal operation strategy is an effective measure to achieve minimum energy costs of the PEV. The optimal operation strategy of the PEV and the optimal load response may have significant effects on the distribution power system......Since the hourly spot market price is available one day ahead in Denmark, the electricity price could be transferred to the consumers and they may make some optimal charge and discharge schedules for their electric vehicles in order to minimize their energy costs. This paper presents an optimal...

Economic requirements for competitive laser fusion power production

International Nuclear Information System (INIS)

Hogan, W.J.; Meier, W.R.

1986-01-01

An economic model of a laser fusion commercial power plant is used to identify the design and operating regimes of the driver, target and reaction chamber that will result in economic competitiveness with future fission and coal plants. The authors find that, for a plant with a net power of 1 GW/sub e/, the cost of the driver must be less than $0.4 to 0.6 B, and the recirculating power fraction must be less than 25%. Target gain improvements at low driver energy are the most beneficial but also the most difficult to achieve. The optimal driver energy decreases with increasing target technology. The sensitivity of the cost of electricity to variations in cost and performance parameters decreases with increasing target technology. If chamber pulse rates of a few Hz can be achieved, then gains of 80-100 are sufficient, and higher pulse rates do not help much. Economic competitiveness becomes more difficult with decreasing plant size. Finally, decreasing the cost of the balance of plant has the greatest beneficial effect on economic competitiveness

Establishment of windows-based load management system for electricity cost savings in competitive electricity markets

International Nuclear Information System (INIS)

Chung, K.H.; Kim, B.H.; Hur, D.

2007-01-01

For electricity markets to function in a truly competitive and efficient manner, it is not enough to focus solely on improving the efficiencies of power supply. To recognize price-responsive load as a reliability resource, the customer must be provided with price signals and an instrument to respond to these signals, preferably automatically. This paper attempts to develop the Windows-based load management system in competitive electricity markets, allowing the user to monitor the current energy consumption or billing information, to analyze the historical data, and to implement the consumption strategy for cost savings with nine possible scenarios adopted. Finally, this modeling framework will serve as a template containing the basic concepts that any load management system should address. (author)

Gas and coal competition in the EU Power Sector

International Nuclear Information System (INIS)

Cornot-Gandolphe, Sylvie

2014-06-01

Despite its many assets, a confluence of factors - including flat electricity demand, rising use of renewable energy sources, falling wholesale electricity market prices, high gas prices relative to coal and low CO 2 prices - has eroded the competitiveness of natural gas in the EU power sector. The share of natural gas in the EU electricity mix has decreased from 23% in 2010 to 20.5% in 2012. By contrast, coal-fired power stations have been operating at high loads, increasing coal demand by the sector. This thorough analysis by CEDIGAZ of gas, coal and CO 2 dynamics in the context of rising renewables is indispensable to understand what is at stake in the EU power sector and how it will affect future European gas demand. Main findings of the report: - Coal is likely to retain its cost advantage into the coming decade: The relationship between coal, gas and CO 2 prices is a key determinant of the competition between gas and coal in the power sector and will remain the main driver of fuel switching. A supply glut on the international coal market (partly because of an inflow of US coal displaced by shale gas) has led to a sharp decline in coal prices while gas prices, still linked to oil prices to a significant degree, have increased by 42% since 2010. At the same time, CO 2 prices have collapsed, reinforcing coal competitiveness. Our analysis of future trends in coal, gas and CO 2 prices suggests that coal competitive advantage may well persist into the coming decade. - But coal renaissance may still be short-lived: Regulations on emissions of local pollutants, i.e. the Large Plant Combustion Directive (LCPD) and the Industrial Emissions Directive (IED) that will succeed it in 2016, will lead to the retirement of old, inefficient coal-fired power plants. Moreover, the rapid development of renewables, which so far had only impacted gas-fired power plants is starting to take its toll on hard coal plants' profitability. This trend is reinforced by regulation at EU or

Power exchange game in the electricity market

International Nuclear Information System (INIS)

Pyykko, S.; Partanen, J.; Viljainen, S.; Lassila, J.; Honkapuro, S.; Tahvanainen, K.

2006-01-01

Since it is not economically reasonable to build parallel electricity networks, in Finland, Sweden, Norway and Denmark, electricity distribution is protected by monopoly. However, electricity production and selling have been opened up to competition by connecting the transmission networks of these countries together, and it is possible to produce electricity where it is cheapest. A common electricity power market, called Nord Pool, has been created where electricity can be bought, sold or used as an exchange product. In order to help students understand the operation of electricity markets and the use of different electricity exchange products, the Department of Electrical Engineering at Lappeenranta University developed a scheme in which the theory can be used in practice. In the scheme, students are given the responsibility to manage the electricity markets of power companies in order analyze, plan and make decisions, which are skills required on the open power markets. The paper provided an introduction to the electricity markets in Nordic countries and discussed Nord Pool and its products. Information about education at the Department of Electrical Engineering at Lappeenranta University of Technology was also presented. The paper also provided details of the power exchange scheme on the electricity markets. 6 refs., 17 figs

Competition in the electricity supply industry. Experiences from Europe and the United States

International Nuclear Information System (INIS)

Olsen, O.J.

1995-01-01

Introducing competition in the electricity industry is a major social experiment. Historically, the industry has been heavily regulated, however, this is no longer the case. Production and sales are being opened for competition and separated from the network services, transmission and distribution. This book includes papers from a Nordic Conference held in September 1994 in Copenhagen. The conference was planned as a part of the Energy Research Programme under the Nordic Council of Ministers and the object was to discuss the Nordic experience of competition in the electricity industry in comparison with other Western countries. The U.K. was the first European country to introduce competition in its electricity industry. Norway came next and two other Nordic countries - Sweden and Finland - have decided to follow suit. The U.S. started earlier than the European countries opening for limited competition in power production. However, the background of the reforms and its approach in the U.S. is different from Europe and far less radical. The experience of two Central European countries - Germany and The Netherlands - is also included in this book. Both countries have many institutional similarities to the Nordic countries, but they are - together with Denmark - more hesitant about introducing competition in their electricity industries. (au)

A framework for cost-based pricing of transmission and ancillary services in competitive electric power markets

International Nuclear Information System (INIS)

Zobian, A.; Ilic, M.D.

1995-01-01

In this paper the authors propose a framework for accurate cost determination and pricing of transmission and ancillary services in competitive electric power markets. The proposed framework is based on their anticipation of the evolving environment and industry structure. They envision the future as a competitive energy market with a centralized control entity that coordinates system activities, prices transmission and ancillary services and controls various system resources. This control entity has control over a certain (pre-defined) geographical area. It is proposed that the system operation and control be kept as they are currently done in control centers, no major change in these functions is required for the proposed pricing strategy. The pricing strategy is divided into two main classes based on time scale separation and firmness, short and long term, firm and interruptible contracts. The approach is based on superposition of different transaction on the network, and a three-part tariff design. The charges are directly related to the impact of each transaction on the system

Competition and deregulation in electricity : the national and continental dimension

International Nuclear Information System (INIS)

Garant, D.

2000-01-01

Some of the recent developments with Hydro-Quebec in terms of moving towards a deregulated competitive market were presented. In June 2000, the Quebec National Assembly passed legislation allowing for power generation and wholesale supply of electricity within Quebec will to be a deregulated business based on the gradual introduction of a competitive, contested market at the wholesale level. This legislation mitigates Hydro-Quebec's market power by legislating a long term fixed price supply contract between Hydro-Quebec's generation and distribution groups, operating as a functionally separate division within corporate Hydro-Quebec. Hydro-Quebec's market power in generation is 36,000 MW, the bulk of which will be committed to the Quebec distribution market at a fixed price of about 2.8 cents per kWh. Hydro-Quebec will maintain the rights to develop large scale hydro in Quebec if the development meets conditions of economic viability, environmental soundness and is locally acceptable. Hydro-Quebec is also expanding into new areas of generation such as wind power. The electric utility also believes it can play a role in Atlantic Canada by trading and moving off-peak and on-peak energy by using the storage capacity of their large hydro reservoirs

Industry sector analysis, Mexico: Electric power production and distribution equipment. Export Trade Information

International Nuclear Information System (INIS)

Wood, J.S.; Miller, R.W.

1988-09-01

The Industry Sector Analyses (I.S.A.) for electric power production and distribution equipment contains statistical and narrative information on projected market demand, end-users, receptivity of Mexican consumers to U.S. products, the competitive situation - Mexican production, total import market, U.S. market position, foreign competition, and competitive factors, and market access - Mexican tariffs, non-tariff barriers, standards, taxes and distribution channels. The I.S.A. provides the United States industry with meaningful information regarding the Mexican market for electric power production and distribution equipment

The prerequisite for competition in the restructured wholesale Saudi electricity market

International Nuclear Information System (INIS)

Al-Muhawesh, Tareq A.; Qamber, Isa S.

2008-01-01

Protection of customers against monopoly is the first and main objective of the Saudi Electricity and Co-generation Regulatory Authority (ECRA). The second important objective, as recommended by the present study, is regulating natural monopoly businesses [Saudi electricity national grid (SENG) and Saudi electricity distribution (SED)] in addition to promoting real competition in competitive businesses [power supply providers (PSPs) and customer service providers (CSPs)]. Another four main objectives of ECRA are to promote the efficient use of energy and natural resources, to ensure a reasonable rate of return for PSPs and CSPs and at the same time to be fair to end-users, to ensure reasonable charges to SENG and SED services to be adequate for them to run the organization in a break-even manner and to maintain the system's security and reliability. The present paper discusses the way to improve and restructure the Saudi electricity market

Transmission capacities and competition in Western European electricity market

International Nuclear Information System (INIS)

Spiridonova, Olga

2016-01-01

The integration of national electricity markets into a single European one is expected to reduce the ability of dominant players to exercise market power. This paper investigates whether or not existing transmission capacities of cross-border interconnectors are sufficient to achieve this result and create vigorous competition in the market. A model with two decision levels is used. On the first level profit maximizing generators play Cournot game against each other. On the last level the system operator clears the market and determines flows in the network to maximize social welfare subject to a set of physical constraints. As each strategic generator anticipates her impact on equilibrium prices and congestion in the system, her optimization problem is subject to equilibrium constraints from the system operator's problem. The analysis demonstrates that interconnector capacities in Western Europe are insufficient for integration alone to reduce the exercise of market power. I compare several possible competition-enhancing policies: expansion of interconnectors and different scenarios of national markets’ restructuring. I show that although increase of line capacity is a useful tool to stimulate competition in an integrated market, it is not a substitute for the restructuring of large players. - Highlights: •The ability of integration to reduce market power depends on transmission capacities. •In the model firms compete in quantities, know their impact on prices and congestion. •In Western Europe integration will not diminish market power. •Line extension stimulates competition but is not a substitute for the regulation.

DSM and electric utility competitiveness: An Illinois perspective

International Nuclear Information System (INIS)

Jackson, P.W.

1994-01-01

A predominant theme in the current electric utility industry literature is that competitive forces have emerged and may become more prominent. The wholesale bulk power market is alreadly competitive, as non-utility energy service providers already have had a significant impact on that market; this trend was accelerated by the Energy Policy Act of 1992. Although competition at the retail level is much less pervasive, electric utility customers increasingly have greater choice in selecting energy services. These choices may include, depending on the customer, the ability to self-generate, switch fuels, move to a new location, or rely more heavily on demand-side management as a means of controlling electric energy use. This paper explores the subject of how demand-side management (DSM) programs, which are often developed by a utility to satisfy resource requirements as a part of its least-cost planning process, can affect the utility's ability to compete in the energy services marketplace. In this context, the term 'DSM' is used in this paper to refer to those demand-side services and programs which provide resources to the utility's system. Depending on one's perspective, DSM programs (so defined) can be viewed either as an enhancement to the competitive position of a utility by enabling it to provide its customers with a broader menu of energy services, simultaneously satisfying the objectives of the utility as well as those of the customers, or as a detractor to a utility's ability to compete. In the latter case, the concern is with respect to the potential for adverse rate impacts on customers who are not participants in DSM programs. The paper consists of an identification of the pros and cons of DSM as a competitive strategy, the tradeoff which can occur between the cost impacts and rate impacts of DSM, and an examination of alternative strategies for maximizing the utilization of DSM both as a resource and as a competitive strategy

DSM and electric utility competitiveness: An Illinois perspective

Energy Technology Data Exchange (ETDEWEB)

Jackson, P.W.

1994-12-31

A predominant theme in the current electric utility industry literature is that competitive forces have emerged and may become more prominent. The wholesale bulk power market is alreadly competitive, as non-utility energy service providers already have had a significant impact on that market; this trend was accelerated by the Energy Policy Act of 1992. Although competition at the retail level is much less pervasive, electric utility customers increasingly have greater choice in selecting energy services. These choices may include, depending on the customer, the ability to self-generate, switch fuels, move to a new location, or rely more heavily on demand-side management as a means of controlling electric energy use. This paper explores the subject of how demand-side management (DSM) programs, which are often developed by a utility to satisfy resource requirements as a part of its least-cost planning process, can affect the utility`s ability to compete in the energy services marketplace. In this context, the term `DSM` is used in this paper to refer to those demand-side services and programs which provide resources to the utility`s system. Depending on one`s perspective, DSM programs (so defined) can be viewed either as an enhancement to the competitive position of a utility by enabling it to provide its customers with a broader menu of energy services, simultaneously satisfying the objectives of the utility as well as those of the customers, or as a detractor to a utility`s ability to compete. In the latter case, the concern is with respect to the potential for adverse rate impacts on customers who are not participants in DSM programs. The paper consists of an identification of the pros and cons of DSM as a competitive strategy, the tradeoff which can occur between the cost impacts and rate impacts of DSM, and an examination of alternative strategies for maximizing the utilization of DSM both as a resource and as a competitive strategy.

Studies in market-based electric power trade and regulation

International Nuclear Information System (INIS)

Hope, Einar

2000-01-01

This is a compilation of articles written by the author during the last fifteen years. Most of the articles are related to the reform of the Norwegian electric power market. This reform led to the Energy Act of 1990 and to the subsequent development of the power markets. Some of the sections are in Norwegian, some in English. The sections discuss (1) Markets for electricity trade in Norway, (2) Economic incentives and public firm behaviour, (3) Market alternatives to the present forms of occasional power trade, (4) Socio-economic considerations about electricity pricing, (5) Scenarios for market based power trade in Norway, (6) Markets for electricity: economic reform of the Norwegian electricity industry, (7) The Norwegian power market, (8) A common Nordic energy market?, (9) Organization of supply markets for natural gas in Europe, (10) The extent of the central grid, (11) Optimum regulation of grid monopolies in the power trade, (12) Power markets and competition policy, (13) Deregulation of the Norwegian power sector, (14) designing a market based system for the Icelandic electricity industry and (15) regulation regimes for the power sector

Nuclear power generation in competition with other sources for base load electricity generation

International Nuclear Information System (INIS)

Notari, C.; Rey, F.C.

1996-01-01

The latest studies performed by OECD and IAEA on the subject were analyzed in order to clarify the international context. Nuclear, gas and coal are compared. The general conclusion is that nuclear power is competitive for electricity generation considering new plants to be commissioned around year 2000. If the discount rate is 5% per annum it is considered the best option in most of the countries included in the studies. If 10% is chosen the levelized costs favour the gas option. In the Argentine case, the analysis of possible plants for the near future shows a clear advantage for the gas projects. This is mainly due to the low capital costs and low local gas prices. The possible evolution of this situation is considered: gas prices will most probably increase because they should approach the price of fuel oil or diesel oil which are used as substitutes in winter for electricity generation and the export projects to Chile and Brasil will also push prices up. The environmental aspects of the question and its influence on regulations and costs is a matter of speculation. Some countries have already penalized greenhouse gases emissions but it is not clear how and when this trend will affect local prices. (author). 4 refs., 6 tabs

Electric power industry restructuring and ROE: The case of Korea Electric Power Corporation

International Nuclear Information System (INIS)

Won, Gu-Hwan

2007-01-01

Korea's electric power industry was previously run by Korea Electric Power Corporation (KEPCO) in a natural monopoly-type structure. As economy of scale was waning in influence and management effectiveness began to increase in importance, KEPCO was divided into six subsidiaries and faced competition beginning in April 2001. This study evaluates the restructuring process for Korea's power industry and analyzes the financial outcomes based on return on equity (ROE). The results show that the ROE ratio increased. In the analysis period (1993-2004), the financial ratio showed a better performance than that before restructuring. However, productivity ratios such as productivity of capital (or gross value added to total assets) and gross value added to property, plant, and equipment decreased compared to the situation before restructuring. It is believed that the results were due to the increased financial leverage of KEPCO. For this reason, KEPCO should make further efforts to manage its debt in a systematic way

Economics of generating electricity from nuclear power

International Nuclear Information System (INIS)

Boadu, H.O.

2001-01-01

The paper reviews and compares experiences and projected future construction and electricity generation costs for nuclear and fossil fired power plants. On the basis of actual operating experience, nuclear power has been demonstrated to be economically competitive with other base load generation options, and international studies project that this economic competitiveness will be largely maintained in the future, over a range of conditions and in a number of countries. However, retaining and improving this competitive position requires concerted efforts to ensure that nuclear plants are constructed within schedule and budgets, and are operated reliably and efficiently. Relevant cost impacting factors is identified, and conclusions for successful nuclear power plant construction and operation are drawn. The desire to attain sustainable development with balanced resource use and control of the environmental and climate impacts of energy systems could lead to renewed interest in nuclear power as an energy source that does not emit greenhouse gases, thus contributing to a revival of the nuclear option. In this regard, mitigation of emissions from fossil-fuelled power plants could lead to restrictions of fossil fuel use and/or result in higher costs of fossil based generation, thus improving the economic competitiveness of nuclear power (au)

Competitive electricity markets around the world: approaches to price risk management

International Nuclear Information System (INIS)

Masson, G.S.

1999-01-01

This chapter focuses on wholesale electricity markets, and traces the histories of the US and UK power industries. Risk management in the new electricity market is examined covering price risk, location basis risk, volume risk, and margin and cross-commodity risk. Specific competitive market systems that have been implemented around the world including mandatory pools, voluntary pools, and bilateral markets are discussed. Panels describing the functions of ancillary services, electricity price volatility, and the problems of capacity payments and the UK pool are presented

The changing structure of the electric power industry: An update

International Nuclear Information System (INIS)

1996-12-01

The U. S. electric power industry today is on the road to restructuring a road heretofore uncharted. While parallels can be drawn from similar journeys taken by the airline industry, the telecommunications industry, and, most recently, the natural gas industry, the electric power industry has its own unique set of critical issues that must be resolved along the way. The transition will be from a structure based on a vertically integrated and regulated monopoly to one equipped to function successfully in a competitive market. The long-standing traditional structure of the electric power industry is the result of a complex web of events that have been unfolding for over 100 years. Some of these events had far-reaching and widely publicized effects. Other major events took the form of legislation. Still other events had effects that are less obvious in comparison (e.g., the appearance of technologies such as transformers and steam and gas turbines, the invention of home appliances, the man-made fission of uranium), and it is likely that their significance in the history of the industry has been obscured by the passage of time. Nevertheless, they, too, hold a place in the underpinnings of today's electric industry structure. The purpose of this report, which is intended for both lay and technical readers, is twofold. First, it is a basic reference document that provides a comprehensive delineation of the electric power industry and its traditional structure, which has been based upon its monopoly status. Second, it describes the industry's transition to a competitive environment by providing a descriptive analysis of the factors that have contributed to the interest in a competitive market, proposed legislative and regulatory actions, and the steps being taken by the various components of the industry to meet the challenges of adapting to and prevailing in a competitive environment

The changing structure of the electric power industry: An update

Energy Technology Data Exchange (ETDEWEB)

NONE

1996-12-01

The U. S. electric power industry today is on the road to restructuring a road heretofore uncharted. While parallels can be drawn from similar journeys taken by the airline industry, the telecommunications industry, and, most recently, the natural gas industry, the electric power industry has its own unique set of critical issues that must be resolved along the way. The transition will be from a structure based on a vertically integrated and regulated monopoly to one equipped to function successfully in a competitive market. The long-standing traditional structure of the electric power industry is the result of a complex web of events that have been unfolding for over 100 years. Some of these events had far-reaching and widely publicized effects. Other major events took the form of legislation. Still other events had effects that are less obvious in comparison (e.g., the appearance of technologies such as transformers and steam and gas turbines, the invention of home appliances, the man-made fission of uranium), and it is likely that their significance in the history of the industry has been obscured by the passage of time. Nevertheless, they, too, hold a place in the underpinnings of today`s electric industry structure. The purpose of this report, which is intended for both lay and technical readers, is twofold. First, it is a basic reference document that provides a comprehensive delineation of the electric power industry and its traditional structure, which has been based upon its monopoly status. Second, it describes the industry`s transition to a competitive environment by providing a descriptive analysis of the factors that have contributed to the interest in a competitive market, proposed legislative and regulatory actions, and the steps being taken by the various components of the industry to meet the challenges of adapting to and prevailing in a competitive environment.

A new era of prosperity through power : maintaining BC's competitive advantage

International Nuclear Information System (INIS)

Potts, D.

2001-01-01

The availability of abundant low cost electric power has been a driving force behind British Columbia's economic growth. BC's low cost power resources can create a natural competitive economic advantage for the province. Electricity, as a publicly owned resource can offer many competitive advantages for business in British Columbia, if managed correctly. However, it was noted that meaningful economic advantages can only be realized if the existing power resources in the province are operated efficiently and priced at or close to cost. In the 1980s, the Joint Industry Electricity Steering Committee (JIESC) was formed following the regulation of BC Hydro by BC Utilities Commission. It became clear that maintaining low rates for electricity was a public issue that needed input from other governmental forums if JIESC was to be successful. The major sectors represented by JIESC include pulp and paper, mining, and electrochemicals. This paper listed each member company. In order to turn BC's economy around and re-establish the province as a leading economy in Canada, the following recommendations have been proposed for the short term: (1) maintain an ample supply of low cost power for the future, (2) remove the provincial sales tax on the purchase of electric power used for manufacturing and processing, (3) extend the current rate freeze, (4) initiate a long-term resource acquisition and transmission expansion strategy to assure the availability of ample supplies of low cost power. Recommendations for the long term include: (1) maintain regulated cost based rates, (2) develop ample low cost power, (3) utilize downstream benefits, (4) provide a role for the private sector, (5) maintain adequate transmission facilities, (6) reduce government revenues, and (7) instill customer driven management. 3 figs

Source selection problem of competitive power plants under government intervention: a game theory approach

Science.gov (United States)

Mahmoudi, Reza; Hafezalkotob, Ashkan; Makui, Ahmad

2014-06-01

Pollution and environmental protection in the present century are extremely significant global problems. Power plants as the largest pollution emitting industry have been the cause of a great deal of scientific researches. The fuel or source type used to generate electricity by the power plants plays an important role in the amount of pollution produced. Governments should take visible actions to promote green fuel. These actions are often called the governmental financial interventions that include legislations such as green subsidiaries and taxes. In this paper, by considering the government role in the competition of two power plants, we propose a game theoretical model that will help the government to determine the optimal taxes and subsidies. The numerical examples demonstrate how government could intervene in a competitive market of electricity to achieve the environmental objectives and how power plants maximize their utilities in each energy source. The results also reveal that the government's taxes and subsidiaries effectively influence the selected fuel types of power plants in the competitive market.

Market power in deregulated electricity markets : a review of the recent experience

International Nuclear Information System (INIS)

Mullin, K.; Trebilcock, M.

2003-01-01

Traditionally, the electric power industry has been headed by vertically integrated monopolies that combined power generation, transmission, distribution and retail components of electricity supply. Electric utilities were generally publicly owned and subjected to rate-of-return regulation. The industry in many jurisdictions is now being unbundled with the advent of new generation technology that has led the way for small generation facilities to produce competitively priced electricity and enter the electricity market. Regulators have recognized that private monopolies had little incentive to minimize costs resulting in inefficient operation of the utility. The challenge lies in designing a system that truly promotes competitive markets. This presentation examined the characteristics of market power and described the experiences of several jurisdictions in dealing with possible market power abuse. The presentation also presented lessons learned in California, Pennsylvania, New Jersey, Maryland, New Zealand, Alberta, and Ontario that could be applied to future electricity markets. In conclusion, the authors state that governments should use caution when implementing across-the-board price caps, because doing so discourages new investment in generation capacity.152 refs

Buying and selling power in the age of competition

International Nuclear Information System (INIS)

Douglas, J.

1994-01-01

This article describes the market management which is the subject of pioneering research being conducted by EPRI. On the wholesale side, this research centers on the development of powerful analytical methods to support utility decisions regarding new opportunities in the bulk power market. Research on retail market management is concentrated on developing innovative price-differentiated services that can enhance the value of electricity to customers and also foster a utility's long-term financial competitiveness

Regulation and competition issues in Thai electricity sector

International Nuclear Information System (INIS)

Wisuttisak, Pornchai

2012-01-01

This paper explores the issues related to regulatory reform and liberalisation leading toward competition in the Thai electricity sector, which is still under the monopoly control of state-owned enterprises (SOEs). Following an overview of the current market structure of the Thai electricity sector, the process of liberalisation and deregulation that contributes to the uncompetitive market structure under SOEs’ control is examined. The author asserts that there are problems within the Energy Commission and the Energy Industry Act BE 2550 (2007) that contribute to the continuance of an uncompetitive electricity supply. Possible reforms to the Thai electricity regulation are proposed with the aim of creating market competition and efficiency in the Thai electricity sector. - Highlights: ► Author studies on the regulatory reform and a development of liberalisation plans on Thai electricity sector. ► The paper presents that the liberalisation plan was affected by the government implementation on electricity corporatisation. ► The paper asserts that the current energy regulation will not lead to market reform and competition in electricity. ► The paper also discusses on the current monopoly structure of Thai electricity sector under state owned enterprises. ► The paper concludes that Thailand needs an appropriate regulatory reform for building competition in electricity sector.

Competition policy and regulation in hydro-dominated electricity markets

International Nuclear Information System (INIS)

Rangel, Luiz Fernando

2008-01-01

This paper discusses the main competition issues that arise in electricity systems dominated by hydro generation, arguing that technological differences between hydro and thermal plants may allow hydropower producers to exert market power in different and subtler ways compared to thermal generators. The key for market power in hydro-based systems is the strategic allocation of a given amount of output across periods, rather than a straightforward reduction of total output. The paper examines the interaction between strategic hydro reservoir operation and transmission capacity constraints, and summarizes the implications of market power for system reliability. A review of recent relevant literature is included. Finally, possible interventions to mitigate market power are analysed

Estimating the contribution of the private power plant on electricity market in Korea

Energy Technology Data Exchange (ETDEWEB)

Sonn, Yang-Hoon; Park, Jong-Bae

2010-09-15

This paper aims to measure the contribution of merchant power provider in electricity market in Korea. In spite of the restructuring process of last one decade, wholesale power market is still dominated by KEPCO and its subsidiaries. The share of the public-owned power plants is 89% in capacity, and 96% in generation. The participation of the private power shows very significant contribution in promoting the competition in the market in spite of the small share. The conclusion of the paper is that we need to enhance the competition among suppliers in order to build stable electricity market for the consumer.

Competitive bidding for independent power: developments in the United States

International Nuclear Information System (INIS)

Kliman, M.

1995-01-01

In the United States electric utilities are using competitive bidding programs to procure power supplies from non-utility generators and, in some cases, to establish contracts with energy service companies for the implementation of demand-side management projects. Such programs are viewed as a path to efficient contracts in the private power industry. But bidding programs are complex, subject to pitfalls, and are developing very quickly. This paper reports on that development as of the early 1990s and, as an illustration, briefly describes and analyzes the bidding program of an electric utility in the State of New York. (author). 2 tabs

The Oak Ridge Competitive Electricity Dispatch (ORCED) Model Version 9

Energy Technology Data Exchange (ETDEWEB)

Hadley, Stanton W. [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States); Baek, Young Sun [Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)

2016-11-01

The Oak Ridge Competitive Electricity Dispatch (ORCED) model dispatches power plants in a region to meet the electricity demands for any single given year up to 2030. It uses publicly available sources of data describing electric power units such as the National Energy Modeling System and hourly demands from utility submittals to the Federal Energy Regulatory Commission that are projected to a future year. The model simulates a single region of the country for a given year, matching generation to demands and predefined net exports from the region, assuming no transmission constraints within the region. ORCED can calculate a number of key financial and operating parameters for generating units and regional market outputs including average and marginal prices, air emissions, and generation adequacy. By running the model with and without changes such as generation plants, fuel prices, emission costs, plug-in hybrid electric vehicles, distributed generation, or demand response, the marginal impact of these changes can be found.

Economic impacts of electricity liberalization on the status of nuclear power generation in the United States

International Nuclear Information System (INIS)

Hattori, Toru

2015-01-01

This paper discusses the economic impact of electricity liberalization on the status of nuclear power generation in the United States. Nuclear power plants have been treated equally with other types of power plants in the liberalized electricity market. The existing nuclear power plants were thought to be competitive in liberalized wholesale electricity market. Competitive pressure from the market also facilitated efficiency improvement among the existing nuclear power plants. Although it was difficult to build new reactor, the U.S. nuclear power generators expanded capacity through up rates. In recent years, however, nuclear power plants suffer from the decline in wholesale power prices and some of them are forced to retire early. Although there are some market design issues that could be improved to maintain the efficient nuclear power plants in competitive environment, it is now argued that some additional arrangements to mitigate the investment risks of the nuclear power plants are necessary. (author)

Guide to Alberta's competitive electricity industry

International Nuclear Information System (INIS)

2002-03-01

A crucial point was reached at the beginning of 2001 in the process of competitive electricity market in Alberta, when record high prices were reached in both the natural gas and electricity markets. In this document, the intent was to present, in a non-technical way, the new electricity market. It was designed to cover issues as they flow, from generator to consumer. Therefore, it began with a market model illustration going through each step of the process. Frequently asked questions, developed using the input from 160,000 Albertans, were answered in each section. The first section of the document dealt with a competitive market. In section 2, the electricity supply was discussed, followed by section 3 and the wholesale electricity market. In section, 4, the reader was invited to explore customer choice, and consumer information was provided in section 5. tabs., figs

Retail competition in electricity markets. Expectations, outcomes and economics

International Nuclear Information System (INIS)

Littlechild, Stephen

2009-01-01

In 'Retail competition in electricity markets' (Energy Policy, 37(2), February 2009, Pages 377-386) it is argued by Defeuilly that the introduction of retail competition into electricity markets gave rise to great expectations that it failed to meet, and that this was primarily the fault of Austrian economic thinking. The main purpose of this note is to explain why both of these propositions are incorrect. A few further comments challenge his subsequent suggestion that the competitive process in electricity is so constrained by the limitations of consumer decision-making and electricity technology as to cast doubt on the policy of opening the retail market to competition

Power System Transient Stability Improvement Using Demand Side Management in Competitive Electricity Markets

DEFF Research Database (Denmark)

Hu, Weihao; Wang, Chunqi; Chen, Zhe

2012-01-01

Since the hourly spot market price is available one day ahead in Denmark, the price could be transferred to the consumers and they may shift some of their loads from high price periods to the low price periods in order to save their energy costs. The optimal load response to an electricity price...... for demand side management generates different load profiles and may provide an opportunity to improve the transient stability of power systems with high wind power penetrations. In this paper, the idea of the power system transient stability improvement by using optimal load response to the electricity...... price is proposed. A 102-bus power system which represents a simplified model of the western Danish power system is chosen as the study case. Simulation results show that the optimal load response to electricity prices is an effective measure to improve the power system transient stability with high...

Using energy storage for strategic advantage in competitive electricity markets

International Nuclear Information System (INIS)

Hurwitch, J.W.; Symons, P.

1998-01-01

Energy storage products are emerging for use in power quality, electric transmission and distribution, and renewable energy applications. Despite this emergence into high-value markets, widespread market penetration will only occur when the value of the services that energy storage products can deliver are clearly delineated. The emergence of competitive electricity markets will more clearly define the flexible benefits of energy storage devices. This paper presents a summary of the ESA's position of the status of energy storage technologies, the market barriers, and steps the ESA is undertaking to reduce these barriers. (author)

Outsourcing of generating assets as a competitive strategy for large electric customers

International Nuclear Information System (INIS)

Giacalone, F.T.; Hocker, C.

1998-01-01

The US electric power industry is at a transitional stage on the way to full competition at the retail level. A fundamental difference between wholesale and retail competition is that, with the latter, the end user will have a choice of suppliers. Large electric customers, such as industrial manufacturers, have traditionally had only two choices: to purchase from the local franchise utility or to self-generate. With retail competition, however, these same customers will have not only have many choices of suppliers to compare against the self-generation option, but also will have a new alternative to consider - that of outsourcing their generating assets as a means of retaining effective control, but not necessarily ownership, of their electric supply. Outsourcing of generation assets means turning over complete or partial ownership of these assets to a third party, who then sells the electricity back to the customer at retail. This approach can be advantageous to a customer who wants to achieve one or more of the following benefits that are generally not available in the traditional ''make or buy'' paradigm: monetize (receive cash for) assets to pay down debt or redeploy into its core business; reduce operating and overhead costs; meet increasing power demand without making a significant capital expenditure; retain a significant degree of control over the operation of the assets, rather than turning its source of supply to a utility, independent generator, or power marketer; and move the assets off-balance sheet and off-credit as a means of improving its corporate financial position. Outsourcing of industrial generation, including most or all of the above benefits has already occurred successfully in a handful of cases, such as the James River and Stone Container mills discussed in this paper

Outsourcing of generating assets as a competitive strategy for large electric customers

Energy Technology Data Exchange (ETDEWEB)

Giacalone, F.T.; Hocker, C.

1998-07-01

The US electric power industry is at a transitional stage on the way to full competition at the retail level. A fundamental difference between wholesale and retail competition is that, with the latter, the end user will have a choice of suppliers. Large electric customers, such as industrial manufacturers, have traditionally had only two choices: to purchase from the local franchise utility or to self-generate. With retail competition, however, these same customers will have not only have many choices of suppliers to compare against the self-generation option, but also will have a new alternative to consider - that of outsourcing their generating assets as a means of retaining effective control, but not necessarily ownership, of their electric supply. Outsourcing of generation assets means turning over complete or partial ownership of these assets to a third party, who then sells the electricity back to the customer at retail. This approach can be advantageous to a customer who wants to achieve one or more of the following benefits that are generally not available in the traditional ``make or buy'' paradigm: monetize (receive cash for) assets to pay down debt or redeploy into its core business; reduce operating and overhead costs; meet increasing power demand without making a significant capital expenditure; retain a significant degree of control over the operation of the assets, rather than turning its source of supply to a utility, independent generator, or power marketer; and move the assets off-balance sheet and off-credit as a means of improving its corporate financial position. Outsourcing of industrial generation, including most or all of the above benefits has already occurred successfully in a handful of cases, such as the James River and Stone Container mills discussed in this paper.

Nuclear power within liberalised electricity markets

International Nuclear Information System (INIS)

Kidd, Stephen W.

2002-01-01

Competition between various methods of generating electricity in liberalised markets means that all power plants must be cost-effective. The price of electricity from nuclear power includes all waste disposal and decommissioning costs, unlike other electricity generating technologies. Most existing nuclear power plants are likely to prosper under electricity liberalization. Many will receive operating life extensions and be able to compete in the electricity market for many years to come. Investment costs are particularly heavy for nuclear plants. Capital expenditure appraisal methodologies mean that such plants suffer financial disadvantages in times of high interest rates. Low and stable fuel costs are the prime advantage of nuclear plants against other sources of generating electricity. There will be significant demand for new generating capacity, both incremental and replacement, in the next 20 years. Under present conditions, where there is access to a stable and cheap supply of piped gas, nuclear and coal plants find it difficult to compete against gas-fired plants. The nuclear industry is addressing the need for new reactor designs, offering significant capital and operating cost reductions from the previous generation of reactors. This development and the need for carbon abatement on a worldwide basis offers nuclear plants a further economic advantage against alternative technologies. (author)

Evaluation of alternatives for power system coordination and pooling in a competitive environment

International Nuclear Information System (INIS)

Rudnick, H.; Varela, R.; Hogan, W.

1997-01-01

The paper defines and classifies essential issues that relate the need for electric power system coordination with the increasing development of competition. Principles are formulated and a coordination model and a market structure are proposed, emphasizing the need for economic dispatch in the wholesale market. A detailed comparison is made of the market and pooling implementations developed in Argentina and Chile, countries that have pioneered the creation of competitive markets in the electric energy sector. An evaluation of strengths and weaknesses of those two implementations is included

Measuring the competitiveness benefits of a transmission investment policy: The case of the Alberta electricity market

International Nuclear Information System (INIS)

Wolak, Frank A.

2015-01-01

Transmission expansions can increase the extent of competition faced by wholesale electricity suppliers with the ability to exercise unilateral market power. This can cause them to submit offer curves closer to their marginal cost curves, which sets market-clearing prices closer to competitive benchmark price levels. These lower wholesale market-clearing prices are the competitiveness benefit consumers realize from the transmission expansion. This paper quantifies empirically the competitiveness benefits of a transmission expansion policy that causes strategic suppliers to expect no transmission congestion. Using hourly generation-unit level offer, output, market-clearing price and congestion data from the Alberta wholesale electricity market from January 1, 2009 to July 31, 2013, an upper and lower bound on the hourly consumer competitiveness benefits of this transmission policy is computed. Both of these competitiveness benefits measures are economically significant, which argues for including them in transmission planning processes for wholesale electricity markets to ensure that all transmission expansions with positive net benefits to electricity consumers are undertaken. -- Highlights: •Define competitiveness benefits to consumers from transmission expansions in wholesale market. •Compute upper and lower bounds on competitiveness benefits for Alberta market. •Compare no-perceived congestion prices to actual prices to measure competitiveness benefits. •Economically substantial competitiveness benefits found for sample period studied. •To ensure adequate transmission, planning processes should account for these benefits

Where will the buying and opportunities be in Ontario's competitive power market?

International Nuclear Information System (INIS)

Mackay, B.

1999-01-01

This presentation reviewed some aspects of: (1) competition in market supply, (2) competition in the retail business, (3) improving the odds as a retailer, (4) improving the odds as a large customer, (5) lessons learned from elsewhere, and (6) getting ready for the new marketplace. The comments are based on experiences gained by TransAlta Energy Marketing Corporation from New Zealand, as they might relate to the situation in Ontario. The fact remains that power generation in Ontario is currently dominated by one supplier, which makes true competition rather difficult. New suppliers are also needed because nuclear generation lacks full public confidence and there are many environmental concerns regarding coal-fired generation in urban areas. Also, there are weak transmission links with adjoining markets. New suppliers can help by bringing attractive supply technologies that are competitive in 'market-sized' chunks, while new power marketers can help by providing insights and capabilities which customers and smaller producers would otherwise have to develop, by linking electricity markets with other energy markets and financial markets to create more opportunities, and by taking on electricity market risks which customers and and producers would otherwise have to address. The choices facing municipal electric utilities, issues relating to competition in the retail business, including such fundamentals as understanding the de-regulation process and the opportunities and risks of the new situation, are reviewed. As far as lessons learned from elsewhere are concerned, the important things are that customers expect reliability, 'wires' must not subsidize 'retail', competition laws must be robust and fast acting, and costs must be reduced and services improved

Competition in communal power supply. Wettbewerb in der kommunalen Stromversorgung

Energy Technology Data Exchange (ETDEWEB)

Bolle, F [Lehrstuhl fuer Volkswirtschaftstheorie (Mikrooekonomie), Frankfurt/Oder (Germany)

1993-06-01

In the eighties, a broad discussion about possible increases of efficiencies in public supply (and in other regulated areas) has started under the slogan ''deregulation''. The use of the term deregulation is not uniform. In the discussions of the past years, however, it turned out more and more that the literal significance (reduction of the regulation density) is less the center of interest than rather the creation of a new regulatory frame which allows to establish markets in spaces free of competition. From ''need'' to ''supply'' one passes over to ''demand'' and ''offer''. Deregulation in local electric power supply means correspondingly: How can the consumer prices for electricity be determined through competitive processes instead of a cost regulation In the following, fundamental problems are mentioned. (orig./UA)

CO2: EDF's competitiveness is due to nuclear power

International Nuclear Information System (INIS)

Anon.

2003-01-01

The CO 2 emissions of EDF group (EDF-France + EDF-energy (UK) + Hidrocantabrico (Spain) + EnBW (Germany)) soared by 53% in 2002 which is due to the purchase of british and spanish electricity sub-companies using fossil energies. Despite this sharp increase EDF remains one of the most competitive electricity companies in Europe concerning greenhouse gas emissions. EDF group is the first electricity company in Europe, it generates 22% of the electricity produced in E.U and contributes to CO 2 emissions with a rate of 101 Kg CO 2 /MWh which 3 times less than the average rate of 20 other European companies (358 Kg CO 2 /MWh). This result is due to the large part of nuclear power in the French energy mix. The best electricity companies as far as CO 2 emissions are concerned are Statkraft (Norway) with 0 Kg CO 2 /MWh (100% hydrology) and British-energy (U.K) with 75 Kg CO 2 /MWh (75% nuclear power). At the other end we have the DEI company (Greece) with 863 Kg CO 2 /MWh (100% lignite). (A.C.)

Nuclear power plants and their position in the competitive generation industry of the USA

International Nuclear Information System (INIS)

Petroll, M.R.

2000-01-01

One effect to be observed in the USA is that power trading in the deregulated electricity sector initiates a 'comeback' of the nuclear power stations, reputed to be dead by anti-nuclear power policy followers. Quite to the contrary, growing competition in the generation industry and the resulting upward pressure on costs increasingly induce power generation companies to enter into competitive buying of nuclear power stations, which offer better availability and prolonged service life. The article gives the technical details and explains the economic reasons for this trend in an analysis comparing nuclear power generation with conventional or new non-nuclear generation technologies. (orig./CB) [de

The electricity market. Situation and predictions 2018 - Sectoral and competitive analysis

International Nuclear Information System (INIS)

2017-01-01

This document comprises two reports. A first one, published and updated three times a year, and a second one which is a yearly publication. The first one, based on an analysis of market perspectives and of actor strategies, proposes a synthesis on the consequences of the evolution of the economic environment, on major trends noticed for the electric power sector, and on predictable evolutions. It proposes the most recent data regarding the activities of about 200 firms belonging to the power sector (notably in terms of turnover and of electric power consumption). It highlights recent events for companies of the sector: takeovers, investments, restructuring, introduction of new products, and so on. It proposes a sector-based dashboard which contains all the critical figures useful to analyse the sector situation (activity determining factors, key figures for the sector and its environment). The annual report proposes a presentation of the sector and of the determining factors of its activity, an analysis of the activity evolution (trends, indicators like turnover, electric power consumption and production, prices and regulated tariffs, power imports and exports), a presentation of financial performance of electricity producers, a description of the sector economic structure (evolution of the economic tissue, analysis of structural characteristics), and a presentation of actors and of the competitive landscape (ranking and positioning of electric power providers and producers, market shares, identity sheets of the main actors, highlights, and ranking of the main companies in terms of turnover and of financial performance)

Pricing of electricity tariffs in competitive markets

International Nuclear Information System (INIS)

Keppo, J.; Raesaenen, M.

1999-01-01

In many countries electricity supply business has been opened for competition. In this paper we analyze the problem of pricing of electricity tariffs in these open markets, when both the customers' electricity consumption and the market price are stochastic processes. Specifically, we focus on regular tariff contracts which do not have explicit amounts of consumption units defined in the contracts. Therefore the valuation process of these contracts differs from the valuation of electricity futures and options. The results show that the more there is uncertainty about the customer's consumption, the higher the fixed charge of the tariff contract should be. Finally, we analyze the indication of our results to the different methods for estimating the customer's consumption in the competitive markets. Since the consumption uncertainties enter into the tariff prices, the analysis indicates that the deterministic standard load curves do not provide efficient methods for evaluating the customers' consumption in competitive markets

Consequences of concentration in the power industry for competition

International Nuclear Information System (INIS)

Schmitt, D.; Schuermann, J.

1977-01-01

The problem of the consequences of concentration in the power industry of West Germany for competition has been studied by the authors and others in the investigation'Konzentration und Wettbewerb...', which has been published by the power economics institute of Cologne University. The article is based on this investigation and discusses its conclusions. Three concepts for the deliminitation of markets are presented and discussed with a view to their realizability under the existing conditions on different energy supply markets i.e. the mineral oil, electric power, gas hard coral, brown coal, and nuclear industries. (orig.) [de

Electric-utility DSM programs in a competitive market

Energy Technology Data Exchange (ETDEWEB)

Hirst, E.

1994-04-01

During the past few years, the costs and effects of utility demand-side management (DSM) programs have grown sharply. In 1989, US electric utilities spent 0.5% of revenues on such programs and cut total electricity consumption by 0.6%. By 1992, these numbers had increased to 1.3% and 1.2%, respectively. Utility projections, as of early 1993, of DSM expenditures and energy savings for 1997 were 1.7% and 2.5%, respectively. Whether this projected growth comes to pass may depend on current debates about deregulation of, and increased competition in, the electric-utility industry. This report examines the factors likely to affect utility DSM programs in a more competitive environment. The electric-utility industry faces two forces that may conflict with each other. One is the pressure to open up both wholesale and retail markets for competition. The net effect of such competition, especially at the retail level, would have much greater emphasis on electricity prices and less emphasis on energy services. Such an outcome would force a sharp reduction in the scale of DSM programs that are funded by customers in general. The second force is increased concern about environmental quality and global warming. Because utilities are major contributors to US carbon dioxide emissions, the Administration`s Climate Change Action Plan calls on utilities to reduce such emissions. DSM programs are one key way to do that and, in the process, to cut customer electric bills and improve economic productivity. This report discusses the forms of competition and how they might affect DSM programs. It examines the important roles that state regulatory commissions could play to affect retail competition and utility DSM programs. The report also considers the effects of DSM programs on retail electricity prices.

The Municipal Electrical Utilities' role in buying and selling power

International Nuclear Information System (INIS)

Crocker, D.I.

1999-01-01

Ontario's Municipal Electrical Utilities (MEUs) are the front-line providers of electricity services for most of the consumers in Ontario. MEUs serve 2.8 million customers (about 70 per cent of all power sold in Ontario). The new regulatory regime resulting from Ontario's Energy Competition Act (1998) will significantly impact MEUs. The changes aim to consolidate and rationalize the point of sale provision of power to Ontario customers and increase the efficiency of the sector. The Energy Competition Act (1998) creates a competitive electricity marketplace and provides mechanisms for its operation, but it is the MEUs which will bear the risk of market failures. Some of the changes which will be most important to MEUs are: (1) incorporation, (2) default supplier, and (3) oversight by the OEB. It is the author's view that the move towards open markets in electricity is unlikely to enlarge the decision making power of MEUs. On the contrary, the legislative scheme creates a complex regulatory environment wherein the distribution corporation must strictly comply with the OEB's requirements and public policy concerns in exercising its functions. As the MEUs essentially serve as a buffer in the newly opened retail markets, they must find ways to minimize their risk of market failures or spread the cost so as to remain viable commercial entities. They must also devise new information systems prior to the opening of the new market to deal with customer and default consumer pricing, billing and transfer of customers to and from retailers. Municipal utilities will also have to consider restructuring of their own operations, including determining which businesses should be pursued through competitive affiliates

Gas to Coal Competition in the U.S. Power Sector

Energy Technology Data Exchange (ETDEWEB)

NONE

2013-06-01

With the newfound availability of natural gas due to the shale gas revolution in the United States, cheap gas now threatens coal’s longstanding position as the least costly fuel for generating electricity. But other factors besides cost come into play when deciding to switch from coal to gas. Electricity and gas transmission grid constraints, regulatory and contractual issues, as well as other factors determine the relative share of coal and gas in power generation. This paper analyzes competition between coal and gas for generating power in the United States and the factors explaining this dynamic. It also projects coal-to-gas switching in power generation for 18 states representing 75% of the surplus gas potential in the United States up to 2017, taking into consideration the impact of environmental legislation on retirement of coal-fired power plants.

Determinants of the number of bidders in the competitive procurement of electricity supply contracts in the Japanese public sector

International Nuclear Information System (INIS)

Hattori, Toru

2010-01-01

Since the electricity retail market in Japan was partially opened to competition in 2000, many government entities have sought to solicit competing bids for the electricity supply to their office buildings or facilities, encouraging competition between the incumbents and new entrants. However, in many cases, only the incumbent utility bids for the contract and the competitive effects are limited. This paper presents a statistical analysis of bidders' participation in competitive procurement. We employ several count data regression models to explain the number of bidders other than the local electric utility. Our results suggest that the number of bidders would decrease in response to an increase in the load factor, perhaps because the new entrants are less competitive in serving customers with high load factors as they do not operate low-cost base-load power plants such as nuclear power plants; It would increase along with the voltage level and contract demand. The results also indicate that new entrants are more likely to participate in the bidding process in large city areas. (author)

Competitive power development

Energy Technology Data Exchange (ETDEWEB)

Garrity, T.F.; Stoll, H.G. [GE Power Systems Engineering, Schenectady, NY (United States)

1994-12-31

Electric power is essential to economic growth and the improvement in the standard of living in modern societies. Maximizing the overall economic efficiency of electric power production can lead to even stronger economic growth. Overall electricity efficiency can be driven by utilization of the newest and most economically efficient technologies, utilization of the most efficient financial structuring, and efficient integration of coproduction of electricity and process energy. The challenge is to drive the power generation strategy toward maximum economic efficiency while improving the overall country environment emissions. This paper reviews the key power generation technologies available today and in the near future. Of key importance is the capital cost, efficiency, environmental impacts, and reliability of each technology and how these technologies can be integrated with efficient financial structurings to maximize the country power generation economic efficiency. Examples of several countries are used to show recent successes in maximizing economic efficiency.

Modeling market power in electricity markets: Is the devil only in the details?

Energy Technology Data Exchange (ETDEWEB)

Bautista, Guillermo; Anjos, Miguel F.; Vannelli, Anthony

2007-01-15

Basic approximations of the transmission system are ubiquitous in the literature on modeling competition in electricity markets. Because the main concern of market power is with active power, reactive power and voltage-related issues are commonly neglected, even though they are inherent features of an electrical power system. However, the usefulness of stylized formulations that do not comprise these system elements may be severely limited. (author)

Electricity to natural gas competition under customer-side technological change: a marginal cost pricing analysis

International Nuclear Information System (INIS)

Gulli', Francesco

2004-01-01

This paper aims at evaluating the impact of technological change (on the customer side of the meter) on the network energy industry (electricity and natural gas). The performances of the small gas fired power technologies and the electrical reversible heat pumps have improved remarkably over the last ten years, making possible (or more viable) two opposite technological trajectories: the fully gas-based system, based on the use of small CHP (combined heat and power generation) plants, which would involve a wide decentralisation of energy supply; the fully electric-based system, based on the use of reversible electric heat pumps, which would imply increasing centralisation of energy supply. The analysis described in this paper attempts to evaluate how these two kinds of technological solutions can impact on inter-service competition when input prices are ste equals to marginal costs of supply in each stage of the electricity and natural gas industries. For this purpose, unbundled prices over time and over space are simulated. In particular the paper shows that unbundling prices over space in not very important in affecting electricity to natural gas competition and that, when prices are set equal to long-run marginal costs, the fully electric-based solution (the reversible heat pump) is by far preferable to the fully gas-based solution (the CHP gas fired small power plant). In consequence, the first best outcome of the technological change would involve increasing large power generation and imported (from the utility grid) electricity consumption. Given this framework, we have to ask ourselves why operators, regulators and legislators are so optimistic about the development of the fully gas-based solutions. In this respect, the paper suggests that market distortions (such as market power, energy taxation and inefficient pricing regulation) might have give an ambiguous representation of the optimal technological trajectory, inducing to overestimate the social value

The role of price elastic demand in market power in the Nordic electricity markets

International Nuclear Information System (INIS)

Ravn, H.F.

2004-01-01

The paper discusses the modelling and analysis of market power and price elastic demand in the Nordic electricity spot market, Nordpool. The modelling of market power in the electricity sector must take into account a number of features that are specific to the electricity sector. First, electricity cannot be stored, but must be produced simultaneously with consumption. This aspect is, however, modified by the possibility of using hydro reservoirs as an indirect electricity storage. Second, the electricity transmission network plays an important role by breaking the market into several geographically separate sub-markets with different prices. Moreover, the specific bottlenecks may differ from hour to hour, according to the balance between supply and demand in each sub-market. Third, the demand side is presently characterised by very limited experience with hour to-hour-changes in electricity prices and very limited experience with short time adjustments of electricity consumption in response to changes in the electricity price. In the present paper three basic models for supply side competition on the Nordpool spot market will be presented, viz., perfect competition, Cournot competition and Supply Function Equilibrium. The models represent price and quantity settlement, including determination of price areas (bottle necks), in accordance with the way the Nordpool market functions. The models will incorporate electricity demand which is responsive to the electricity price. The paper describes the role of demand response for the determination of the electricity prices in each of the three supply side competition models. (au)

The objective is to achieve safe and competitive nuclear power

International Nuclear Information System (INIS)

Mattila, L.

1996-01-01

The 440 nuclear power plants in operation in the world today produce nearly one fifth of the world's electricity. Few new nuclear power plants are currently under construction in the West. Among the major factors slowing down the increase of nuclear power are the negative public opinion and the poor competitiveness of large plant units. In contrast, some of the countries in the Far East are busy building new nuclear power plant units. New advanced nuclear power plant types have been under development; the objective is to continue to improve safety and to raise the competitiveness. Increasing attention is also paid to measures extending the service life of the present power plants. Gas-cooled high-temperature reactors and liquid-metal-cooled breeder reactors appear to be promising alternatives. Practical experience of both plant types is available on the prototype level. Considerable sums of public research funds are spent towards the development of fusion technology. It is, however, unrealistic to expect fusion to become an important commercial source of energy before the middle of next century. (orig.) (4 figs.)

The liberalization of the electricity market in Austria aspects of competition and deregulation

International Nuclear Information System (INIS)

Lausegger, S.

2001-05-01

The subject of the thesis is the deregulation of the Austrian electricity market. It starts with an introduction in the historical background of the legal basis, which until 1998 had been determined exclusively by national law. The main fields of interest in this chapter lay within the federal nature of Austrian electricity law. The next chapter deals with electricity in European Community law, it focuses on the fundamental freedoms of the Treaty on one hand and the Directive 96/92 on Common Provisions for the Electricity Markets on the other. On the basis of this introduction, the Austrian National Electricity Law (e.g. the 'Elektrizitaewirtschafts- und -organisationsgesetz 1998' and the 'Energieliberalisierungsgesetz 2000') has to be assessed. It can be shown that the transformation of Community Law has only partly been successful. Only on the basis of this national and European regulatory framework, an evaluation of the current situation is made according to the principles of competition law (e.g. horizontal agreements, abuse of market power, merger control, state aid). Either national and Community competition law is being discussed, as Community competition law also applies to competition restrictions that are caused by state action. The Austrian way of furthering renewable energies can be named as an example for an insufficient transformation. The last chapter focuses on various aspects of contract law in the deregulated market. Finally, a short summary presents the academic results of the thesis. (author)

The role of government in a competitive power market : strategic behaviors and regulation

Energy Technology Data Exchange (ETDEWEB)

Kim, N.Y. [Korea Energy Economics Institute, Euiwang (Korea)

2001-12-01

Restructuring in the Korean power industry has fundamentally changed the role of government. The role of government in a new environment may include : (1) promoting competition (2) prohibiting collusion or unfair trade practices (3) securing uninterrupted power supply (4) providing universal services to consumers (5) implementing appropriate price regulation. Focusing on the first two issues, this report has analyzed anti-competitive strategic behaviors and an impact of market power and tried to provide regulatory guidelines. This report surveyed three types of theoretical models analyzing a bidding behavior in an electric power market. The Cournot model is applied to the Korean electricity market. The following policy implications are derived. (1) The Cournot-Nash equilibrium price can be regarded as a threshold in market surveillance. (2) Had the fossil stations been divided among six instead of five companies, then market power would have been weakened in a reasonable degree. This finding also renders some implications with respect to business permission, divestiture, and merger. Among those, it is argued that a large new entrant rather than small IPPs contributes to increasing competition and lowering market power. (3) Increase in responsiveness of final demand to wholesale price fluctuation is an important factor to lower the Cournot equilibrium price and so market power. Therefore, appropriate regulatory system should be arranged to make power demand more elastic. (4) Activating contract markets such as CfD and introducing the capacity credit market can greatly help to lower market power. (author). 36 refs., 26 figs., 4 tabs.

Production and competition in the European electric sector. 4. report from the research project 'renewable energy in the community's internal market'

International Nuclear Information System (INIS)

Kjersgaard, A.

1997-01-01

The aim is to elucidate the dynamic interactive pricing, competition and market mechanisms that are valid for the European electric power market. The perspective in the report is to analyse the vertical flow of substance and values of energy, the interaction of the actors, and the economic relations. The first link in the vertical chain is the energy raw materials supplies: the reserves and production of fossil and nuclear fuels and the relation to globalization of electricity production. The next link is the production of electricity: the production technologies used and their positioning, the importance of large trans-national utilities in relation to technological changes. The third link is the market and the changes of the market between production, transmission, distribution and consumption of electricity, and the consequences of these changes. Two horizontal regulating sectional views are analysed: The European Union regulations of the electric power sector and the Danish regulations of power supplies. Finally, production and competition of electric power from renewable energy sources, i.e. wind power, in a future European energy market is put into perspective. (LN) 134 refs

A new era of prosperity through power : maintaining BC's competitive advantage

Energy Technology Data Exchange (ETDEWEB)

Potts, D. [BC Council of Forest Industries, Vancouver, BC (Canada)

2001-08-17

The availability of abundant low cost electric power has been a driving force behind British Columbia's economic growth. BC's low cost power resources can create a natural competitive economic advantage for the province. Electricity, as a publicly owned resource can offer many competitive advantages for business in British Columbia, if managed correctly. However, it was noted that meaningful economic advantages can only be realized if the existing power resources in the province are operated efficiently and priced at or close to cost. In the 1980s, the Joint Industry Electricity Steering Committee (JIESC) was formed following the regulation of BC Hydro by BC Utilities Commission. It became clear that maintaining low rates for electricity was a public issue that needed input from other governmental forums if JIESC was to be successful. The major sectors represented by JIESC include pulp and paper, mining, and electrochemicals. This paper listed each member company. In order to turn BC's economy around and re-establish the province as a leading economy in Canada, the following recommendations have been proposed for the short term: (1) maintain an ample supply of low cost power for the future, (2) remove the provincial sales tax on the purchase of electric power used for manufacturing and processing, (3) extend the current rate freeze, (4) initiate a long-term resource acquisition and transmission expansion strategy to assure the availability of ample supplies of low cost power. Recommendations for the long term include: (1) maintain regulated cost based rates, (2) develop ample low cost power, (3) utilize downstream benefits, (4) provide a role for the private sector, (5) maintain adequate transmission facilities, (6) reduce government revenues, and (7) instill customer driven management. 3 figs.

The effects of electric power industry restructuring on the safety of nuclear power plants in the United States

Science.gov (United States)

Butler, Thomas S.

Throughout the United States the electric utility industry is restructuring in response to federal legislation mandating deregulation. The electric utility industry has embarked upon an extraordinary experiment by restructuring in response to deregulation that has been advocated on the premise of improving economic efficiency by encouraging competition in as many sectors of the industry as possible. However, unlike the telephone, trucking, and airline industries, the potential effects of electric deregulation reach far beyond simple energy economics. This dissertation presents the potential safety risks involved with the deregulation of the electric power industry in the United States and abroad. The pressures of a competitive environment on utilities with nuclear power plants in their portfolio to lower operation and maintenance costs could squeeze them to resort to some risky cost-cutting measures. These include deferring maintenance, reducing training, downsizing staff, excessive reductions in refueling down time, and increasing the use of on-line maintenance. The results of this study indicate statistically significant differences at the .01 level between the safety of pressurized water reactor nuclear power plants and boiling water reactor nuclear power plants. Boiling water reactors exhibited significantly more problems than did pressurized water reactors.

Performance issues for a changing electric power industry

Energy Technology Data Exchange (ETDEWEB)

1995-01-01

Extremely cold weather created record demands for electricity in the eastern two-thirds of the United States during the week of January 16, 1994. Fuel-related problems, mostly the result of transportation constraints resulting from ice accumulation on roads and water-ways, and unexpected generating capacity outages at utilities and nonutilities resulted in demand not being met. Some utilities asked nonessential customers along with State governments and a portion of the Federal Government to shut down. Two electric control areas, the Pennsylvania-New Jersey-Maryland Interconnection (PJM) and Virginia Electric & Power Company (VEPCO), instituted rolling blackouts. This disturbance was reported widely in the press and, along with other disturbances, peaked renewed interest in the reliability of the electric power system. The renewed interest in reliability has coincided with substantial changes that are beginning to occur in the structure and competitiveness of the electric power industry. Juxtaposing the question of reliability and the issue of changing industry structure leads to the central concern of this report: What effect, if any, will the changing structure of the industry have on the reliability of the system?

A look forward to the competitive landscape of Ontario's electricity supply

International Nuclear Information System (INIS)

Carr, J.

1998-01-01

The government of Ontario is a shareholder in Ontario Hydro and is responsible for ensuring that the public receives electricity service at the lowest, most prudent price. The current monopoly arrangement provides Ontario with a revenue stream that is predictable and amenable to control. However, the emerging restructuring of Ontario's electricity supply system will be strongly dependent on the direction determined by government policy. Other factors that will have significant influence on developments will be the restructuring initiatives outside the province, and the attractiveness of the electricity sector to investors. In November 1997, Ontario released a white paper by the Minister of Energy, Science and Technology, entitled 'Direction for change'. This document is a preliminary statement of potential policy regarding electricity restructuring in Ontario. Some of the key elements of the White Paper were: (1) the creation of a competitive market in the year 2000 for both wholesale and retail customers, (2) separating monopoly operations from competitive business activities throughout the electricity sector, (3) expanding the role on the Ontario Energy Board to give it regulatory power over the electricity sector, and (4) introducing measures to ensure environmental protection. Three other relevant reports were also released in December 1997: (1) Report of the Select Committee on Ontario Hydro Nuclear Affairs, (2) Ontario Energy Board Advisory Report on Legislative Change Requirements for Natural Gas Deregulation, and (3) Report of the Toronto Transition Team. The government policy indicated by these various reports appear to represent a careful balance of many conflicting interests and obligations. According to expert observers, the emerging policy appears to have the necessary technical, financial and political support to ensure a successful competitive electricity supply system in Ontario. 4 refs

Profitability primer: a guide to profitability analysis in the electric power industry

International Nuclear Information System (INIS)

Woo, C.K.; Lloyd-Zannetti, D.; Martin, J.; Price, S.

1996-06-01

As the electric power industry is opened to forces of competition, increased attention must be focused to develop products and services that deliver good value to customers and to identify customer segments that are profitable to serve. This primer introduces the concept of profitability analysis and its application to the electric power industry. The primer recognizes that some segments of the business will remain monopolistic and subject to regulations, while other segments will become competitive. The primer also recognizes that customer profitability is critically dependent on a host of related issues such as how internal costs are allocated to various functions and how revenues are collected and allocated

Independent Power Producers' view on restructuring in Ontario's electric power sector

International Nuclear Information System (INIS)

Brooks, J.

1996-01-01

The collective views on electricity industry restructuring of the independent power producers in Ontario were summarized by IPPSO's executive director. The Society is fully in agreement with the MacDonald Committee recommendations to privatize power generation in Ontario, and is equally in favor of competitive restructuring that is now underway in Michigan, New York and Quebec, as well as farther afield in the U.S., the U.K., and elsewhere around the world. IPPSO claims that a competitive generation system comprised of current and future IPPSO members could supply the province's power requirements at a cost 20 per cent lower than the present monopolistic system of Ontario Hydro. Add to that no reduction in services to the consumers, increased revenues in the form of taxes to the province, and the prospect of restructuring becomes far less threatening than first perceived. While fully in agreement with the MacDonald Committee's recommendations, IPPSO is opposed to Ontario Hydro's own restructuring plans. Their objection is based on the assessment that the plan would not result in real competition; in reality, it would allow Hydro even greater freedom to continue investing publicly-guaranteed money on a completely dissimilar basis to its competitors

Improvement of the electric power sector through the access to the national power transmission system - SINTREL (Brazilian National System of Electric Power Transmission); Aperfeicoamento do setor de energia eletrica atraves do acesso a transmissao - SINTREL (Sistema Nacional de Transmissao de Energia Eletrica)

Energy Technology Data Exchange (ETDEWEB)

NONE

1994-04-01

This report presents the organization and the operation of SINTREL (Brazilian National System of Electric Power Transmission), the national power transmission system, and it defines its function in the process of reform of the Brazilian electric sector. Besides showing the traditional organization of the companies and of the electric system, and the evolution of the organization of the Brazilian electric system to favor the competition.

The End of a Natural Monopoly. Deregulation and Competition in the Electric Power Industry

International Nuclear Information System (INIS)

Grossman, P.Z.; Cole, D.H.

2003-01-01

For a hundred years, scholars and government officials understood, or thought they did, the electric power industry. Electric power, based on a single, large service provider, connected by wires to all of its customers, was thought to be an industry that could only operate efficiently as a monopoly; indeed it was something called a 'natural monopoly'. Since it had to be a monopoly, with all the attendant inefficiencies and potential market abuses monopoly entails, government regulation was necessary. These basic assumptions, which at times seemed to conflict with observed facts remained largely unquestioned for the better part of 75 years. Then, changing institutional and technological circumstances led economists to question the basis in fact of the theory of natural monopoly, and the regulatory system it entailed. Movement toward a deregulated electric power system began albeit in piece-meal fashion. Indeed, the result has been a crazy quilt of deregulation and re-regulations, which often have resulted in more costs than benefits for society as a whole. In the most infamous case, California, the entire enterprise of regulatory change has been called into question. The process of deregulation or reregulation in several other states has stopped because of fear of repeating California's mistakes. This book addresses some of the fundamental issues underlying the debate over electric power regulation and deregulation. Only by understanding these questions and exploring a variety of possible answers to them can we hope to move the debate over the proper structure of the electric power industry. Undoubtedly, electric power deregulation will be a major legal and economic concern for years to come

Ethics on the TEPCO bankruptcy, nuclear power plants and regulatory reform in the electric power industry

International Nuclear Information System (INIS)

Koga, Shigeaki

2013-01-01

Although regulatory reform in the electric power industry had been considered as part of social system reform like in the finance and communications to liberalize the market, there still continued to exist regional monopoly, integrated system for power generation, transmission and distribution, and lack of competition. The Fukushima accident showed such electric power system was unethical as social system compared to ordinary industries, because electric power company getting profit could not be prepared for nuclear damage liability and would burden third unrelated parties with risk. Electric power company should be forced to insure nuclear power plants for nuclear accidents. Otherwise restart of nuclear power plant operation should not be allowed. Nuclear power had been justified to be entitled grant or subsidy from the government for public good, which would be unfair to people. This article presented speeding-up scheme of Fukushima accident treatment leading to TEPCO bankruptcy and discussed measures against concerns or comments about bankruptcy procedures, major part of which might be mitigation of fund-raising fear by government support. At the proceeding of bankruptcy procedure including spinning off of separate companies, regulatory reform in the electric power industry could be taken in advanced. (T. Tanaka)

Multi-agent simulation of competitive electricity markets: Autonomous systems cooperation for European market modeling

DEFF Research Database (Denmark)

Santos, Gabriel; Pinto, Tiago; Morais, Hugo

2015-01-01

The electricity market restructuring, and its worldwide evolution into regional and even continental scales, along with the increasing necessity for an adequate integration of renewable energy sources, is resulting in a rising complexity in power systems operation. Several power system simulators...... have been developed in recent years with the purpose of helping operators, regulators, and involved players to understand and deal with this complex and constantly changing environment. The main contribution of this paper is given by the integration of several electricity market and power system models......, respecting to the reality of different countries. This integration is done through the development of an upper ontology which integrates the essential concepts necessary to interpret all the available information. The continuous development of Multi-Agent System for Competitive Electricity Markets platform...

Community liberalisation of the electric power market and public service obligations

International Nuclear Information System (INIS)

Cristoforetti, Brice

2008-06-01

After an overview of original economic and social objectives at the basis of the creation of the European common market, the author examines whether the Community liberalisation of the European domestic electricity market has been an opportunity to acknowledge public service obligations in the European law, and more particularly examines the existence or relevance of the notion of electric power public service. This discussion addresses a period extending from the beginning of the 1960's to the Lisbon Treaty prepared in 2007. The author analyses rules of the European law, and the modalities and consequences of their adoption in the French law, as he considers that the evolution of French administrative legal evolution is the most relevant framework for this study on public service and electric power market. Thus, he first shows that the sector liberalisation, through the conflict between competition and defence of the general interest, actually allowed the existence of public service obligations for State members to be consecrated by the Community law. However, through the study of the electric power public service, the author shows that ambitions which had been initially put forward, are hardly compatible with some modalities of opening to competition

Metalearning to support competitive electricity market players' strategic bidding

DEFF Research Database (Denmark)

Pinto, Tiago; Sousa, Tiago M.; Morais, Hugo

2016-01-01

a dynamic artificial neural network to create its own output, taking advantage on several learning algorithms already implemented in ALBidS (Adaptive Learning strategic Bidding System). The proposed metalearner considers different weights for each strategy, based on their individual performance......Electricity markets are becoming more competitive, to some extent due to the increasing number of players that have moved from other sectors to the power industry. This is essentially resulting from incentives provided to distributed generation. Relevant changes in this domain are still occurring...

Wind farm electrical power production model for load flow analysis

International Nuclear Information System (INIS)

Segura-Heras, Isidoro; Escriva-Escriva, Guillermo; Alcazar-Ortega, Manuel

2011-01-01

The importance of renewable energy increases in activities relating to new forms of managing and operating electrical power: especially wind power. Wind generation is increasing its share in the electricity generation portfolios of many countries. Wind power production in Spain has doubled over the past four years and has reached 20 GW. One of the greatest problems facing wind farms is that the electrical power generated depends on the variable characteristics of the wind. To become competitive in a liberalized market, the reliability of wind energy must be guaranteed. Good local wind forecasts are therefore essential for the accurate prediction of generation levels for each moment of the day. This paper proposes an electrical power production model for wind farms based on a new method that produces correlated wind speeds for various wind farms. This method enables a reliable evaluation of the impact of new wind farms on the high-voltage distribution grid. (author)

Using electricity options to hedge against financial risks of power producers

DEFF Research Database (Denmark)

Pineda Morente, Salvador; Conejo, Antonio J.

2013-01-01

or unexpected unit failures faced by power producers. A multi-stage stochastic model is described in this tutorial paper to determine the optimal forward and option contracting decisions for a risk-averse power producer. The key features of electricity options to reduce both price and availability risks......As a consequence of competition in electricity markets, a wide variety of financial derivatives have emerged to allow market agents to hedge against risks. Electricity options and forward contracts constitute adequate instruments to manage the financial risks pertaining to price volatility...

Financing future exports of Canada's electrical power equipment industry

International Nuclear Information System (INIS)

Hay, K.A.J.; Saravanamuttoo, C.A.

1992-01-01

The economic impact on the Canadian power sector of continued constraints on the availability of concessionary export financing is examined. An overview of the structure of the Canadian electrical power equipment industry is provided, followed by a discussion of its competitiveness and performance. Export prospects are outlined and separate reviews are presented of hydroelectric and thermal expansion. A global market of US $17 billion for hydroelectric power in the 1990s is forecast, and a market of US $300 billion for all forms of power generation in developing Asia. The export strategies of international competitive bidding, forming a consortium within an international multinational enterprise, co-financing with Japanese aid agencies, and direct negotiation are discussed. The costs and benefits of concessional financing are assessed and shown to bring net fiscal benefits. 12 refs., 2 tabs

The electric power market in Europe. The stakes and forecasts of the market reconfiguration

International Nuclear Information System (INIS)

2002-01-01

This study takes stock on the eight main european electric power markets. It provides data on the electric power sector, knowledge on the european market competition, it analyzes the european companies mastership and management, the market reconfiguration, it evaluates and compares the financial performance of the sector leaders. (A.L.B.)

Potential for deserts to supply reliable renewable electric power

Science.gov (United States)

Labordena, Mercè; Lilliestam, Johan

2015-04-01

To avoid dangerous climate change, the electricity systems must be decarbonized by mid-century. The world has sufficient renewable electricity resources for complete power sector decarbonization, but an expansion of renewables poses several challenges for the electricity systems. First, wind and solar PV power are intermittent and supply-controlled, making it difficult to securely integrate this fluctuating generation into the power systems. Consequently, power sources that are both renewable and dispatchable, such as biomass, hydro and concentrating solar power (CSP), are particularly important. Second, renewable power has a low power density and needs vast areas of land, which is problematic both due to cost reasons and due to land-use conflicts, in particular with agriculture. Renewable and dispatchable technologies that can be built in sparsely inhabited regions or on land with low competition with agriculture would therefore be especially valuable; this land-use competition greatly limits the potential for hydro and biomass electricity. Deserts, however, are precisely such low-competition land, and are at the same time the most suited places for CSP generation, but this option would necessitate long transmission lines from remote places in the deserts to the demand centers such as big cities. We therefore study the potential for fleets of CSP plants in the large deserts of the world to produce reliable and reasonable-cost renewable electricity for regions with high and/or rapidly increasing electricity demand and with a desert within or close to its borders. The regions in focus here are the European Union, North Africa and the Middle East, China and Australia. We conduct the analysis in three steps. First, we identify the best solar generation areas in the selected deserts using geographic information systems (GIS), and applying restrictions to minimize impact on biodiversity, soils, human heath, and land-use and land-cover change. Second, we identify

Basic strategies in the electric power industry in the new competitive environment; Estrategias basicas na industria de energia eletrica no novo ambiente competitivo

Energy Technology Data Exchange (ETDEWEB)

Ribeiro Filho, Ary Pinto [Agencia Nacional de Energia Eletrica (ANEEL), Brasilia, DF (Brazil)]. E-mail: arypinto@aneel.gov.br; Moraes, Walter Fernando Araujo de [Pernambuco Univ., Recife, PE (Brazil)]. E-mail: wfam@npd.ufpe.br

1999-07-01

This work identifies the probable strategic characteristics of the interconnected North-Northeast Brazilian electricity industry, after the current restructuring and privatization process has been implemented. It is a 15.0 thousand MW generation industry supplying more than 33.5 million consumers. The normative scenery for analysis of the electricity industry takes into consideration the premises that the government establishes the vertical separation of generation, transmission, distribution and retailing, and introduces the regulation to a competitive industrial structure in generation and retailing. It is assumed that free access to transmit and distribute electricity and broad choices for consumers are the main features for competition in both generation and retailing. The essence of formulating strategy is to relate a company with its environment, considering the industrial structure. The probable generic strategies and industrial trends are presented, and considerations are made concerned with the future expansion capacity. Finally, in the new industrial structure which will settle after the deregulation and privatization, the main strategic issues of the companies will likely focus on: profitability, cost control, managerial competence, consumer behavior, and new technologies, in special the ones related to modern thermal power plants. (author)

Short run pricing in competitive electricity markets

International Nuclear Information System (INIS)

Ring, B. J.; Read, E. G.

1996-01-01

In response to the need for more responsive, competitive and decentralized pricing strategies forced upon the industry by deregulation, this study reviewed the type of electricity pricing required to coordinate a competitive wholesale electricity market over time periods typically of the order of one hour. It was found that nodal spot pricing can provide a straight-forward mechanism for providing the correct signals to market participants, while reflecting the costs and complexities of transmission network operation. Provided that all binding constraints are represented in the pricing model, and assuming that they are used in conjunction with long term contracts and capacity rights, such pricing can potentially deliver most of the benefits promised by perfect coordination, while allowing competition to flourish. 4 refs

Retail competition in electricity markets

International Nuclear Information System (INIS)

Defeuilley, Christophe

2009-01-01

The introduction of competition into retail electricity supply gave rise to great expectations. However, to date, its performance has proven less than stellar, owing primarily to the theoretical concepts underpinning this reform, which draw heavily on the Austrian school. Neither consumers' decision processes nor this sector's technical paradigm were adequately accounted for, leading to an uncorrect estimation of the expected impact of opening to competition. Short- and medium-term prospects for the evolution of retail markets must be reconsidered from the perspective of greater stability: not a generalization of competition, but rather a persistent segmentation between active and inactive clients; not a large and rapid diffusion of radical innovations in commercialisation, with the potential for undermining the incumbents' positions

Reference costs of the electric power production; Couts de reference de la production electrique

Energy Technology Data Exchange (ETDEWEB)

NONE

2003-06-01

This study periodically realized by the DGEMP aims to compare the competitiveness of the different channels of electric power production, for different utilization conditions. The first part ''reference costs of the 2003 electric power production'' examines the prices of the electric power produced by different channels in particular in the framework of the industrial implementing in 2015. The nuclear and thermal power plants are concerned. The second part is devoted to the decentralized production channels (wind energy, photovoltaic, cogeneration heat-electricity) is under construction and will be presented next year. (A.L.B.)

Optimal utilization of electric power in the Nordic countries

International Nuclear Information System (INIS)

Magnusson, G.; Gjelsvik, E.

1992-01-01

It is attempted to address the questions of which advantages the equilibrium solution would have for the energy market under free trade conditions, how Nordic electric power can be used optimally and what the trading pattern looks like, which kind of competition the transmission of electricity via cables to Iceland and other Nordic countries will meet in the United Kingdom (UK) and the Continent, how high the option values are of trading with electric power via cables from, for example, Iceland to the UK and how great the profit could be from a more effective use of electricity for aluminium production in Norway and Iceland. Data are given on consumer prices for 1990 in Scandinavia, Germany and the UK, and a few graphs and a map illustrate the text. (AB)

Power sector development in a common Baltic electricity market. Executive summary

International Nuclear Information System (INIS)

2005-05-01

In the years to come the Baltic electricity sector is expected to go through major changes. up till recently the sector has been characterised by vertically integrated monopolies, but at present the electricity sectors in the Baltic States are undergoing reform processes to meet the requirements of the EU directives regarding liberalisation of electricity sectors. This implies a different organisation of the sector, with new roles and responsibilities, and focus on new issues such as a well-functioning electricity market, security of supply and market power. In this project long-term scenario analyses are used to clarify the challenges facing the future Baltic electricity market and to analyse the robustness of the power sector. The project examines how existing power plants will manage in a competitive market, how power prices will develop and which investments are likely to be preferred by investors, among other issues. (BA)

Dossier: energy in the center of debates. Electric power: Eurostat shades light to the situation

International Nuclear Information System (INIS)

Tourneur, J.C.

2003-01-01

Eurostat, the European Communities office of statistics, has analyzed the 1999-2000 competition indicators in the electric power market of the European member states. In the year 2000, the biggest company of each state was producing between 23 and 97% of the electric power. (J.S.)

Understanding China’s electricity market reform from the perspective of the coal-fired power disparity

International Nuclear Information System (INIS)

Mou, Dunguo

2014-01-01

In China, electricity consumption has grown quickly, supply is highly dependent on coal-fired power, and the prices of electricity are determined by the government, which increases the need for reform to enhance efficiency. In response to disputes about China’s electricity market reform, this paper analyses the efficiency of China’s coal-fired power plants using the Data Envelopment Analysis—Slack Based Measure (DEA-SBM) method on three levels: groups, provinces, and plants. The results indicate that there are both coal-electricity efficiency disparities and generation-hour arrangement unfairness across groups; the disparity across provinces is obvious and long-lasting, as indicated by capacity surpluses and coal-electricity efficiencies; and the disparities are displayed in detail by the estimation at the plant level. The disparities are primarily caused by the generator combination and generation hour arrangement. Competition may be able to solve the disparities, but a further comparison indicates that competition at the national level will enhance the efficiency to a greater degree than competition at the regional level. These results demonstrate that both competition and a united electricity market are necessary for further electricity market reform. - Highlights: • This paper analyses the coal-fired electricity efficiency from three levels. • There are efficiency disparities and hour arrangement unfairness at group level. • The disparities and unfairness are long-lasting across provinces. • The disparities and unfairness are detailed by analysis at plant level. • Competition at national market can improve the efficiency better than at regional market

Small Signal Stability Improvement of Power Systems Using Optimal Load Responses in Competitive Electricity Markets

DEFF Research Database (Denmark)

Hu, Weihao; Su, Chi; Chen, Zhe

2011-01-01

Since the hourly spot market price is available one day ahead in Denmark, the price could be transferred to the consumers and they may shift some of their loads from high price periods to the low price periods in order to save their energy costs. The optimal load response to an electricity price...... price is proposed. A 17-bus power system with high wind power penetrations, which resembles the Eastern Danish power system, is chosen as the study case. Simulation results show that the optimal load response to electricity prices is an effective measure to improve the small signal stability of power...... for demand side management generates different load profiles and may provide an opportunity to improve the small signal stability of power systems with high wind power penetrations. In this paper, the idea of power system small signal stability improvement by using optimal load response to the electricity...

Incentives to Build New Generation on Competitive Electricity Markets. Conference proceedings

International Nuclear Information System (INIS)

2007-06-01

The need for new investments in power generation is paramount all over the world. It has been calculated that only in Europe, there is a need of investments in the electricity sector of around 1,000,000 billion EURs during the next decade. High prices on primary energy, security of supply issues regarding imported fuels and a steadily growing concern about climate changes put an extra restrain on supply options for the future. To meet these challenges politicians, at least in Europe, try out new support schemes and other policy measures as full scale experiments. These policy measures sometimes interact very badly with competitive electricity markets. Some will argue that most of the problems we are facing have very little to do with the design of electricity markets and that the solution to the issue is not necessarily to enforce a tight regulation on the industry. But this said, the issue is so important to society that even we who like competition and have been working hard this last decade to make competitive electricity markets perform well, must be prepared to rethink. This conference once again gathers people from many different parts of the world to exchange ideas and experiences from their respective area of operations. There are four main topics for the Conference: The impact from emission trading programs; Renewable portfolio standards; Nuclear plans and distributed generation incentives; and Capacity payment and/or reserve requirements. (Five papers presented at the conference have been indexed separately. Powerpoint presentations have not been indexed but are available from the Market Design homepage)

The changing structure of the electric power industry: Selected issues, 1998

International Nuclear Information System (INIS)

1998-07-01

More than 3,000 electric utilities in the United States provide electricity to sustain the Nation's economic growth and promote the well-being of its inhabitants. At the end of 1996, the net generating capability of the electric power industry stood at more than 776,000 megawatts. Sales to ultimate consumers in 1996 exceeded 3.1 trillion kilowatthours at a total cost of more than $210 billion. In addition, the industry added over 9 million new customers during the period from 1990 through 1996. The above statistics provide an indication of the size of the electric power industry. Propelled by events of the recent past, the industry is currently in the midst of changing from a vertically integrated and regulated monopoly to a functionally unbundled industry with a competitive market for power generation. Advances in power generation technology, perceived inefficiencies in the industry, large variations in regional electricity prices, and the trend to competitive markets in other regulated industries have all contributed to the transition. Industry changes brought on by this movement are ongoing, and the industry will remain in a transitional state for the next few years or more. During the transition, many issues are being examined, evaluated, and debated. This report focuses on three of them: how wholesale and retail prices have changed since 1990; the power and ability of independent system operators (ISOs) to provide transmission services on a nondiscriminatory basis; and how issues that affect consumer choice, including stranded costs and the determination of retail prices, may be handled either by the US Congress or by State legislatures

The changing structure of the electric power industry: Selected issues, 1998

Energy Technology Data Exchange (ETDEWEB)

NONE

1998-07-01

More than 3,000 electric utilities in the United States provide electricity to sustain the Nation`s economic growth and promote the well-being of its inhabitants. At the end of 1996, the net generating capability of the electric power industry stood at more than 776,000 megawatts. Sales to ultimate consumers in 1996 exceeded 3.1 trillion kilowatthours at a total cost of more than $210 billion. In addition, the industry added over 9 million new customers during the period from 1990 through 1996. The above statistics provide an indication of the size of the electric power industry. Propelled by events of the recent past, the industry is currently in the midst of changing from a vertically integrated and regulated monopoly to a functionally unbundled industry with a competitive market for power generation. Advances in power generation technology, perceived inefficiencies in the industry, large variations in regional electricity prices, and the trend to competitive markets in other regulated industries have all contributed to the transition. Industry changes brought on by this movement are ongoing, and the industry will remain in a transitional state for the next few years or more. During the transition, many issues are being examined, evaluated, and debated. This report focuses on three of them: how wholesale and retail prices have changed since 1990; the power and ability of independent system operators (ISOs) to provide transmission services on a nondiscriminatory basis; and how issues that affect consumer choice, including stranded costs and the determination of retail prices, may be handled either by the US Congress or by State legislatures.

A Game Theoretical Approach Based Bidding Strategy Optimization for Power Producers in Power Markets with Renewable Electricity

Directory of Open Access Journals (Sweden)

Yi Tang

2017-05-01

Full Text Available In a competitive electricity market with substantial involvement of renewable electricity, maximizing profits by optimizing bidding strategies is crucial to different power producers including conventional power plants and renewable ones. This paper proposes a game-theoretic bidding optimization method based on bi-level programming, where power producers are at the upper level and utility companies are at the lower level. The competition among the multiple power producers is formulated as a non-cooperative game in which bidding curves are their strategies, while uniform clearing pricing is considered for utility companies represented by an independent system operator. Consequently, based on the formulated game model, the bidding strategies for power producers are optimized for the day-ahead market and the intraday market with considering the properties of renewable energy; and the clearing pricing for the utility companies, with respect to the power quantity from different power producers, is optimized simultaneously. Furthermore, a distributed algorithm is provided to search the solution of the generalized Nash equilibrium. Finally, simulation results were performed and discussed to verify the feasibility and effectiveness of the proposed non-cooperative game-based bi-level optimization approach.

Renewable energy promotion in competitive electricity markets

International Nuclear Information System (INIS)

Wohlgemuth, Norbert

1999-01-01

The opening of electricity markets to competition involves fundamental structural changes in the electricity supply industry. There is, however, doubt that the new industrial organisation will provide the right price signals that will ensure that renewable energy options will be adopted. Therefore, one of the numerous challenges in the energy industry restructuring process is to ensure that renewable energy has a fair opportunity to compete with other supply resources. This paper presents mechanisms to promote the use of renewable energy in competitive electricity markets. These mechanisms include the Non Fossil Fuel Obligation (NFFO), the Renewables Portfolio Standard (RPS) and the Systems Benefit Charge (SBC). The paper discusses merits and disadvantages of these mechanisms, given the experience made in the United States and the United Kingdom. (author)

Biodigester economic viability for electrical power production using biogas from swine waste

Energy Technology Data Exchange (ETDEWEB)

Cervi, Ricardo Ghantous; Esperancini, Maura Seiko Tsutsui; Bueno, Osmar de Carvalho [Universidade Estadual Paulista (FCA/UNESP), Botucatu, SP (Brazil). Fac. de Ciencias Agronomicas], E-mail: ricardogc@fca.unesp.br; Souza, Samuel Nelson Melegari de [Universidade Estadual do Oeste do Parana (CCET/UNIOESTE), Cascavel, PR (Brazil). Centro de Ciencias Exatas e Tecnologicas

2008-07-01

The increase of energy use in agriculture and the raising prices of electricity demand studies on alternate sources of energy and improvement on biogas use efficiency so that agricultural activities become more competitive. Biogas production through anaerobic biodigestion represents an important breakthrough for the problem of swine waste and energy availability for rural areas. This work aimed to analyze the economy on biodigester investment for electrical power production using biogas from anaerobic biodigestion of swine waste. Two factors were used for this evaluation: the cost of electrical power production through biogas and time for equipment investment return. Results show that investment return time can be only 2.45 years for electrical power at peak time. (author)

Applying mathematical finance tools to the competitive Nordic electricity market

OpenAIRE

Vehviläinen, Iivo

2004-01-01

This thesis models competitive electricity markets using the methods of mathematical finance. Fundamental problems of finance are market price modelling, derivative pricing, and optimal portfolio selection. The same questions arise in competitive electricity markets. The thesis presents an electricity spot price model based on the fundamental stochastic factors that affect electricity prices. The resulting price model has sound economic foundations, is able to explain spot market price mo...

Profiting from competition: Financial tools for electric generation companies

Science.gov (United States)

Richter, Charles William, Jr.

Regulations governing the operation of electric power systems in North America and many other areas of the world are undergoing major changes designed to promote competition. This process of change is often referred to as deregulation. Participants in deregulated electricity systems may find that their profits will greatly benefit from the implementation of successful bidding strategies. While the goal of the regulators may be to create rules which balance reliable power system operation with maximization of the total benefit to society, the goal of generation companies is to maximize their profit, i.e., return to their shareholders. The majority of the research described here is conducted from the point of view of generation companies (GENCOs) wishing to maximize their expected utility function, which is generally comprised of expected profit and risk. Strategies that help a GENCO to maximize its objective function must consider the impact of (and aid in making) operating decisions that may occur within a few seconds to multiple years. The work described here assumes an environment in which energy service companies (ESCOs) buy and GENCOs sell power via double auctions in regional commodity exchanges. Power is transported on wires owned by transmission companies (TRANSCOs) and distribution companies (DISTCOs). The proposed market framework allows participants to trade electrical energy contracts via the spot, futures, options, planning, and swap markets. An important method of studying these proposed markets and the behavior of participating agents is the field of experimental/computational economics. For much of the research reported here, the market simulator developed by Kumar and Sheble and similar simulators has been adapted to allow computerized agents to trade energy. Creating computerized agents that can react as rationally or irrationally as a human trader is a difficult problem for which we have turned to the field of artificial intelligence. Some of our

Electricity market dynamics: Oligopolistic competition

International Nuclear Information System (INIS)

Gutierrez-Alcaraz, G.; Sheble, Gerald B.

2006-01-01

Presently, electricity markets are characterized by a small number of suppliers with distributed resources. These market suppliers can easily be identified because their geographic location is known. Essentially, two or three of them compete for leading the market whereas the rest of them follow. Hence, it is necessary to study the market structure as ologopolistic competition rather than perfect competition. This paper studies market producer decisions in a dynamic sequential framework by using discrete event system simulation (DESS) also known as discrete control theory. Two-player ologopolistic market structure is presented in this paper. (author)

Retail competition in electricity markets

Energy Technology Data Exchange (ETDEWEB)

Defeuilley, Christophe [LARSEN and EDF R and D, Fontenay aux Roses (France)

2009-02-15

The introduction of competition into retail electricity supply gave rise to great expectations. However, to date, its performance has proven less than stellar, owing primarily to the theoretical concepts underpinning this reform, which draw heavily on the Austrian school. Neither consumers' decision processes nor this sector's technical paradigm were adequately accounted for, leading to an uncorrect estimation of the expected impact of opening to competition. Short- and medium-term prospects for the evolution of retail markets must be reconsidered from the perspective of greater stability: not a generalization of competition, but rather a persistent segmentation between active and inactive clients; not a large and rapid diffusion of radical innovations in commercialisation, with the potential for undermining the incumbents' positions. (author)

Meeting the near-term demand for hydrogen using nuclear energy in competitive power markets

International Nuclear Information System (INIS)

Miller, A.I.; Duffey, R.B.

2004-01-01

Hydrogen is becoming the reference fuel for future transportation and the timetable for its adoption is shortening. However, to deploy its full potential, hydrogen production either directly or indirectly needs to satisfy three criteria: no associated emissions, including CO 2 ; wide availability; and affordability. This creates a window of great opportunity within the next 15 years for nuclear energy to provide the backbone of hydrogen-based energy systems. But nuclear must establish its hydrogen generating role long before the widespread deployment of Gen IV high-temperature reactors, with their possibility of producing hydrogen directly by heat rather than electricity. For Gen IV the major factors will be efficiency and economic cost, particularly if centralized storage is needed and/or credits for avoided emissions and/or oxygen sales. In the interim, despite its apparently lower overall efficiency, water electrolysis is the only available technology today able to meet the first and second criteria. The third criterion includes costs of electrolysis and electricity. The primary requirements for affordable electrolysis are low capital cost and high utilisation. Consequently, the electricity supply must enable high utilisation as well as being itself low-cost and emissions-free. Evolved Gen III+ nuclear technologies can produce electricity on large scales and at rates competitive with today's CO 2 -emitting, fossil-fuelled technologies. As an example of electrolytic hydrogen's potential, we show competitive deployment in a typical competitive power market. Among the attractions of this approach are reactors supplying a base-loaded market - though permitting occasional, opportunistic diversion of electricity during price spikes on the power grid - and easy delivery of hydrogen to widely distributed users. Gen IV systems with multiple product streams and higher efficiency (e.g., the SCWR) can also be envisaged which can use competitive energy markets to advantage

Profitability of producing electricity in nuclear power plants

International Nuclear Information System (INIS)

Marecki, J.

2001-01-01

In the first part of this paper, the method used in energy economics to calculate the annual costs of electricity generation is described. The procedure of discounting these costs for complex time distributions of costs and effects is also presented. Hence the principles of choosing the optimum variant from different solutions having the same or not the same effects are determined. Subsequently, the conditions of competitiveness are formulated for nuclear power plants in comparison with other energy options. As example, the the results of calculating total annual costs of electricity generation in various (coal-fired, gas-fired and nuclear) power plants are given for two different values of the discount rate: 5% and 10%. (author)

Perspectives for long-term competition in the central European electricity market

International Nuclear Information System (INIS)

Haas, Reinhard

2005-01-01

In this paper we focus on the Central European electricity market and analyse whether liberalization, deregulation, and privatization are sufficient to bring about real competition. Moreover, we discuss the relevance of the following conditions to bring about real competition and to avoid market power: 1) A rigorous correct un bundling; 2) excess capacities in transmission; 3) excess capacities in generation; 4) a large number of generators and suppliers; 5) the balanced existence of short-term (e.g. spot markets) and long-term markets (e.g. bilateral contracts, forwards); 6) full liberalization; Some major findings of this analysis are: 1) Currently, demand is continuously increasing while capacities are shut down. At least in 2009 demand will have caught up with generation capacities. This could lead to severe price spikes. 2) The Central European electricity market is separated from other markets by means of limited transmission capacities; 3) With respect to effective competition in Central Europe the major problems are: i) a very small (and continuously decreasing) number of generators, and ii) a lack of serious un bundling between generation and transmission mainly in Germany; This leads to cross-subsidization of generation by the network operation and to a heavy discrimination of other and new generators; 4) Moreover, a crucial condition for active competition is a sufficiently large transmission grid. Yet, currently especially at the border to the new EU member countries transmission capacities are rather scarce and there are no signs of extensions of the grid. This also limits the access of countries with potential excess capacities like Ukraine, Bulgaria, Romania to the Central European market The major conclusion of this analysis is: All conditions investigated above must be fulfilled simultaneously to bring about a competitive electricity market in Western Europe and the extended European Union. If only one of these conditions is missing, competition

Electric power market regulations in UK

International Nuclear Information System (INIS)

Federico, G.; Napolano, L.

2000-01-01

The wholesale electricity market in UK is being radically reformed, with the abolition of a centralised market (the Pool) and the introduction of a system based around bilateral trading and real-time balancing (NETA), with the aim of increasing competition in the sector. This article analyses the English experience to draw some implications on the relationship between market design, market structure and market power, and to provide some insights for the design of the future Italian market [it

Power industry and competition

International Nuclear Information System (INIS)

Recknagel, H.

1988-01-01

A task group on antritrust law has been set in by the Federal Ministry of Economics in order to again investigate the position of the utilities within the framework of the law against restraints on competition, (GWB). The task group's report states that from the power industry's perspective, there is no reason to modify the existing system created by sections 103, 103a of the GWB. The EC internal market to come, and enhanced use of coal for power generation to be continued beyond the year 1995 are topics that will keep politicians, utilities, and lawmakers in this field busy enough. In such a situation, the legislator cannot afford a discovery trip into unexplored, theoretical impacts of enhanced competition on the power industry. (orig./DG) [de

Preparation for the competitive European electricity sector

International Nuclear Information System (INIS)

Mombauer, P.M.

2008-01-01

Energy - alongside knowledge, creativity and capital - is one of the fundamental necessities of humankind. Modern life is indeed dependent on energy, especially electricity and natural gas, the grid-connected energies, for its power, heating, cooling and traffic. To ensure security in the supply of energy, world energy hunger must be taken into account. Competition for primary energy resources will increase and the processes for their transformation from raw materials into consumable energy will have to be made more efficient, environmentally friendly and sustainable. Research into new sources of energy has to continue. After the respectable results of the industrial sector to decouple growth and energy consumption in future the transport and building sectors will have to intensify their efforts to reduce energy use intensity

Transmission pricing and stranded costs in the electric power industry

International Nuclear Information System (INIS)

Baumol, W.J.; Sidak, J.G.

1995-09-01

Stranded costs are those costs that electric utilities are currently permitted to recover through their rates but whose recovery may be impeded or prevented by the advent of competition in the industry. Estimates of these costs run from the tens to the hundreds of billions of dollars. Should regulators permit utilities to recover stranded costs while they take steps to promote competition in the electric power industry. William Baumol and J. Gregory Sidak argue that answer to that question should be yes.The authors show that a transmission price, the price for sending electricity over the transmission grid, can be determined in a manner that is compatible with economic efficiency and clearly neutral in its effects upon all competitors in electricity generation. A correctly constructed regime of transmission pricing may in fact achieve the efficiency and equity goals that justify the recovery of stranded costs

Price Formation and Competition in the Swedish Electricity Market. Main findings of ER 2006:13

International Nuclear Information System (INIS)

2006-11-01

The Nordic electricity market can be divided into a Nordic wholesale market - the producer market - and the, national, retail markets. Nord Pool organises a 24-hour market for the physical trade of electricity, the spot market. Nord Pool also has a market place for so-called financial trade where players can (among other things) hedge themselves against price risks. Thus, the trade at Nord Pool represents the basis for trading with electricity throughout the entire Nordic market. In addition to the trade at Nord Pool, there is also bilateral trading between buyers and sellers. The report has been arranged as follows. Initially the functioning of the wholesale market is analysed, the issues addressed include the price formation in the spot market, the functioning of the financial market, as well as the price development in the spot market. The section ends with an analysis of the competitive situation in the Nordic wholesale market with a focus on Sweden. The next section focuses on how a potential introduction of Elspot areas in Sweden might affect the conditions for competition. The third section looks at certain conditions in the Swedish retail market and on certain consequences for households and electricity-intensive industry due to the price increases in recent years. The report concludes with the Energy Markets Inspectorate's deliberations on the need for measures to be undertaken in the Swedish and Nordic electricity market. The concentration on the Nordic electricity market is at a level where the authorities monitoring competition need to counteract changes that lead to further concentration. The present structure of the market, with an increasingly high concentration and co-ownership of power stations, also places demands on the authorities responsible for monitoring competition to implement measures designed to detect and to prevent the possible abuse of market power. There is a substantial need for research on competition and efficiency on the

Regulation and competition in public utilities: Electric utility management in Italy and other industrialized countries

International Nuclear Information System (INIS)

Fraquelli, G.

1992-01-01

In industrialized countries, electric power has become a vital energy resource requiring significant efforts on the part of national institutions to establish and maintain sound management and energy supply strategies. The situation in Italy reflects world trends in that electric power in this country now accounts for over one-third of total energy consumption and this percentage is expected to increase steadily through to the year 2000. This endorsement of electric power is having a strong impact on quality of life and on international relations as Italy, in order to ensure security of energy supplies, is actively pursuing of strategy of energy source and supplier diversification. With reference to recent proposals, in line with European Communities free market strategies, to deregulate the Italian electric power industry, this paper briefly analyzes the current institutional nature of ENEL (the Italian National Electricity Board) and compares the Italian electric power industry and market situation with that of Japan and the USA. The various aspects taken into consideration include investment, rate structure, quality of service, management methods and competition. An analysis is made of the most pressing difficulties currently troubling ENEL and suggestions are made as to the best courses of action to be taken

Deregulation of the California electric power industry: An analysis of electric and natural gas corporate mergers and their effect on the California electric power market

Science.gov (United States)

Hornbuckle, James Dixon

Deregulation of the electric utility industry in California is moving in a direction that places greater reliance on the market forces of competition. Investor owned utilities (IOU's) are using mergers and acquisitions to improve their ability to compete in this new environment. Two large mergers were proposed in 1996 that could affect the California market. The first is between Enron Corporation, a large power marketer and Portland General Corporation, owner of Portland General Electric. The second is between Pacific Enterprises Inc., owner of Southern California Gas Company, the largest natural gas utility in the U. S., and Enova Corporation, owner of San Diego Gas and Electric Company. Understanding the impact of these mergers on the California electric power market is the focus of this study. This study examines hypotheses dealing with: (1) Merger Strategy, (2) Efficiency, and (3) Market Power. Using the Miles and Snow (1978) typology, I develop a strategic orientation model for the merger participants and their competitors. The results suggest a two-stage strategic orientation: (1) regulated core business stage, where the firms follow a Defender strategy, and (2) unregulated business stage, where the firms follow a Prospector strategy. Further, the results show the mergers are consistent with the strategy of Enron and Pacific Enterprises. Event study methodology, dollar gains/losses and market value weighted returns are used to determine if the mergers support the efficiency hypothesis. The evidence suggests the mergers lead to increased competitive advantage through improved efficiency for the participants. The results also suggest the mergers do not harm the rivals. The results of structural changes made by the California Public Utilities Commission (CPUC) in deregulation of the California market and analysis of the mergers by the CPUC and the Public Utility Commission of Oregon suggest that the exercise of market power is not a significant issue. Finally

Deregulation for the electric power industry in Japan and the outlook; Nippon no denryoku sangyo no kisei kanwa to sono tenbo

Energy Technology Data Exchange (ETDEWEB)

Matsuo, N. [The Institute of Energy Economics, Tokyo (Japan)

1996-10-01

The future direction and outlook of the electric power industry in Japan was described in a new systematical framework based on the amendment to the Electric Utility Industry Law. When viewing the deregulation system from a viewpoint of `induction of competition,` comparative assessment may mean competition introduced among electric power companies; establishment of the competitive bidding system by the whole supply business may mean competition introduced into the power generation sector; establishment of the specified electric utility industry system may mean competition introduced into the retailing sector. Further, a system to notify the authority of the price list, rationalization of safety rules, deregulation on the entry into another business, etc. can be interpreted as the spread of a width of discretion on business management. An increase in economic efficiency by cost reduction is expected as an influence of this deregulation, but the subject is how well the deregulation can balance with publicity and social responsibility. Relating to the entry of IPP, there is some anxiety: small scale power sources have high failure rates and difficulty in load frequency control. Moreover, it affects the public benefit in a sense of the apparently worsening air pollution. 12 figs., 1 tab.

Concentrating solar thermal power as a viable alternative in China's electricity supply

International Nuclear Information System (INIS)

Chung-Ling Chien, John; Lior, Noam

2011-01-01

Study of low-carbon and pollution renewable alternatives for China revealed that concentrating solar thermal (CST) electric power generation was underemphasized in China's renewable energy plan. The analysis shows the competitive viability of CST: (1) China has the key prerequisites to make CST power generation economical including high-quality insolation and appropriate land, (2) CST's proven history, scale, and dispatchability makes it a good utility-scale power option, especially in the economically underdeveloped Western regions, (3) while CST power is currently more expensive than coal-fired electricity on a nominal basis, when costs of externalities are accounted for, CST, at 11.4 US cents/kWh, can become 57% cheaper than scrubbed coal and 29% cheaper than nuclear power, (4) CST power continues dropping in cost due to economies of scale and technological improvements and can potentially realize a levelized electricity cost of around 4 cents/kWh within ten years, (5) it would significantly rise in competitiveness if and when China completes the extensive smart grid for connecting its solar-abundant western regions with the high-demand eastern regions, (6) CST has the potential to positively impact Western China's economy, but proper policy and deal structure must be in place to ensure that the local community shares the benefit. - Highlights: ► We analyze inclusion of concentrating solar thermal (CST) power in China. ► We find that CST needs emphasis in China's renewable energy plan. ► The analysis shows that CST is competitive with coal if externalities are considered. ► We recommend a policy that would develop CST power generation in western regions. ► This would be of significant benefit to Western China's economy and to China.

A modeling and control framework for operating large-scale electric power systems under present and newly evolving competitive industry structures

Directory of Open Access Journals (Sweden)

Marija D. Ilić

1995-01-01

Full Text Available This paper introduces a systematic, structure-based modeling framework for analysis and control of electric power systems for processes evolving over the mid-term and long-term time horizons. Much simpler models than the detailed dynamics specifically for control design at different hierarchical levels are obtained by applying both temporal and spatial separation. These simple models, or the aggregate models, represent the net effect of interactions among interconnected regions on specific hierarchical levels. They are exact, since no assumptions on weak interconnections among the subsystems are made. Moreover they are easily understood in terms of power flows among the regions. The approach is essential for improving present performance of the system. It is also potentially useful in a competitive utility environment in which it is critical to study the interplay between technical and economic processes.

The role of nuclear power in the new competitive era

International Nuclear Information System (INIS)

Pryor, C.W.

1998-01-01

As power generators around the world grapple with the challenges of deregulation and competition, there are those who suggest that ownership of an operating nuclear power plant may prove to be a liability. This is not the case for most plants. On the contrary, nuclear facilities that perform well will be important assets in competitive markets, whether as sources of competitively priced electricity, or as strategic factors in mergers and acquisitions. And, as the world focuses renewed attention on global climate change and the reduction of greenhouse gas emissions, nuclear power's significant environmental benefits further enhances its continued viability. The emergence of competitive markets will create a period of tremendous opportunity and enhanced value for nuclear plants. Nuclear plants, large coal plants, and hydro are the only types that can produce power at the bus bar with production costs close to one cent per kilowatt-hour. The challenge for all nuclear plants is to reduce costs and improve performance in order to improve their net earnings stream. Prospects for dramatic reductions are very high. In recent years, average nuclear plant performance figures worldwide have improved rapidly and substantially, and average costs are dropping. How will nuclear plants compare with alternative energy sources in an era of heightened competition? To evaluate nuclear plants in a competitive environment, this paper will look at three key areas: capital costs; operation and maintenance costs; and fuel costs, including spent fuel issues. The paper will examine innovative strategies to deal with capital or 'sunk costs' such as write-downs through securitization and regional operating companies, and will also focus on best practices in O and M and fuel where all nuclear plants have the potential to move to 'best in class'. The lessons that every nuclear plant can learn from other plants can contribute significantly to the performance improvement process. What has been

Competition in the power markets of Northern Europe; Konkurranse i kraftmarkedene i Nord-Europa

Energy Technology Data Exchange (ETDEWEB)

Tennbakk, Berit

1998-12-01

This report analyses the question whether a working wholesale market for electricity will develop in Northern Europe despite the differences in external conditions and in industrial structure. A recent EC directive and the approach towards a liberalization of the European energy markets direct attention to increased integration and trade with electricity. It is unclear whether the directive will have the intended impact. Norway, Sweden and Finland have deregulated their power markets, while Denmark, Germany and the Netherlands still have a monopolistic market structure. The most important difference between the deregulated and the monopolistic systems is that in the deregulated system the technical network activities are separated out and regulated while the suppliers compete in a market. The technical properties of network operation and the systems properties of the network imply advantages under large-scale operation that indicate that network operation is a natural monopoly which must be regulated. However, there are few essential large-scale advantages in the production of electric power. Thus, business based on competition implies that transmission and distribution should be regulated and that competition is allowed in those parts of the trade that do not profit from large-scale operation. International power trade is not necessarily a goal in itself. If transporting the energy carriers used in power production is cheaper than electric power, then the power plants should be placed where the demand is. In the development of the national systems, requirements have been imposed on the power sector in addition to cost-efficiency. Hence there is great variation in production structure and costs among countries, which provides a basis for profitable trade. In fact, there is a great potential for increased efficiency by increasing the trade among the EC countries. 23 refs., 7 tabs.

The electric power engineering handbook electric power generation, transmission, and distribution

CERN Document Server

Grigsby, Leonard L

2012-01-01

Featuring contributions from worldwide leaders in the field, the carefully crafted Electric Power Generation, Transmission, and Distribution, Third Edition (part of the five-volume set, The Electric Power Engineering Handbook) provides convenient access to detailed information on a diverse array of power engineering topics. Updates to nearly every chapter keep this book at the forefront of developments in modern power systems, reflecting international standards, practices, and technologies. Topics covered include: * Electric Power Generation: Nonconventional Methods * Electric Power Generation

Unbundling generation and transmission services for competitive electricity markets

International Nuclear Information System (INIS)

Hirst, E.; Kirby, B.

1998-01-01

Ancillary services are those functions performed by the equipment and people that generate, control, and transmit electricity in support of the basic services of generating capacity, energy supply, and power delivery. The Federal Energy Regulatory Commission (FERC) defined such services as those 'necessary to support the transmission of electric power from seller to purchaser given the obligations of control areas and transmitting utilities within those control areas to maintain reliable operations of the interconnected transmission system.' The nationwide cost of ancillary services is about $12 billion a year, roughly 10% of the cost of the energy commodity. More important than the cost, however, is the necessity of these services for bulk-power reliability and for the support of commercial transactions. FERC's landmark Order 888 included a pro forma tariff with provision for six key ancillary services. The Interconnected Operations Services Working Group identified another six services that it felt were essential to the operation of bulk-power systems. Several groups throughput the United States have created or are forming independent system operators, which will be responsible for reliability and commerce. To date, the electricity industry (including traditional vertically integrated utilities, distribution utilities, power markets and brokers, customers, and state and federal regulators) has paid insufficient attention to these services. Although the industry had made substantial progress in identifying and defining the key services, much remains to be doe to specify methods to measure the production, delivery, and consumption of these services; to identify the costs and cost-allocation factors for these services; and to develop market and operating rules for their provision and pricing. Developing metrics, determining costs, and setting pricing rules are important because most of these ancillary services are produced by the same pieces of equipment that

Proceedings of the international conference on nuclear power competitiveness in the next two decades

International Nuclear Information System (INIS)

1996-01-01

The purpose of this conference is to analyse the different elements that can have an influence on the cost of generating nucleo- electricity. Besides the usual predominant factors as fuel supply, personnel and maintenance that enter in the costs of any electricity generating method, nuclear power generation suffers the extra burden of severe regulatory demands, high decommissioning and insurance costs and an adverse public opinion that can effect competitiveness. Countries that can keep the nuclear option open during this difficult period will be the leaders in the future, those that cannot survive will become hopelessly energy dependent. Almost one hundred contributions gathered in these volume, as a result of presentations at the conference from participants from 22 countries, will contribute to increase competitiveness of nuclear power generation and, if possible, develop new ideas to help solve the present crisis in the nuclear sector. refs., ills

Proceedings of the international conference on nuclear power competitiveness in the next two decades

Energy Technology Data Exchange (ETDEWEB)

NONE

1997-12-31

The purpose of this conference is to analyse the different elements that can have an influence on the cost of generating nucleo- electricity. Besides the usual predominant factors as fuel supply, personnel and maintenance that enter in the costs of any electricity generating method, nuclear power generation suffers the extra burden of severe regulatory demands, high decommissioning and insurance costs and an adverse public opinion that can effect competitiveness. Countries that can keep the nuclear option open during this difficult period will be the leaders in the future, those that cannot survive will become hopelessly energy dependent. Almost one hundred contributions gathered in these volume, as a result of presentations at the conference from participants from 22 countries, will contribute to increase competitiveness of nuclear power generation and, if possible, develop new ideas to help solve the present crisis in the nuclear sector. refs., ills.

Evaluation on Influence of Unstable Primary-Energy Price in a Deregulated Electric Power Market—Analysis based on a simulation model approach—

Science.gov (United States)

Maitani, Tatsuyuki; Tezuka, Tetsuo

The electric power market of Japan has been locally monopolized for a long time. But, like many countries, Japan is moving forward with the deregulation of its electric power industry so that any power generation company could sell electric power in the market. The power price, however, will fluctuate inevitably to balance the power supply and demand. A new appropriate market design is indispensable when introducing new market mechanisms in the electric power market to avoid undesirable results of the market. The first stage of deregulation will be the competition between an existing large-scaled power utility and a new power generation company. In this paper we have investigated the wholesale market with competition of these two power companies based on a simulation model approach. Under the competitive situation the effects of exogenous disturbance may bring serious results and we estimated the influence on the market when the price of fossil fuel rises. The conclusion of this study is that several types of Nash equilibriums have been found in the market: the larger the new power generation company becomes, the higher the electricity price under the Nash equilibriums rises. Because of the difference in their structure of generation capacity, the existing large-scaled power utility gets more profit while the new power generation company loses its profit when the price of fossil fuel rises.

Retail competition in electricity supply—Survey results in North Carolina

International Nuclear Information System (INIS)

McDaniel, Tanga M.; Groothuis, Peter A.

2012-01-01

Residential retail competition in electricity supply was introduced in many countries and some US states as part of electricity industry deregulation. Following problems in the electricity market in California in 2000/2001 many US states, including North Carolina, suspended their deregulation agenda. Recent technological advances have made competition more viable, so we ask if NC should reconsider deregulation and retail competition. The welfare benefits will depend on consumers’ willingness to switch suppliers and the potential for value added innovations. In electricity and industries such as pay-tv and telecommunications consumers are ‘sticky’, remaining with their current supplier even though rivals offer savings. Moreover, some analysts question the likelihood of significant welfare improvements from retail competition. We survey residents in two NC counties focusing on: (i) households’ knowledge of and interest in retail competition, (ii) factors that would encourage them to switch suppliers and (iii) the required savings to encourage switching. About 50–65% of respondents would favor retail competition in NC. Demographic variables and experience switching in other industries affect opinions and the savings required to incent switching. We conclude the estimated rate reduction to encourage competitive switching will be hard to achieve in NC as long as rates remain below the national average. - Highlights: ► NC survey results suggest residents are interested in utility supply competition. ► Socio-demographic variables affect opinions. ► A lower bound on required savings to incent switching is about 1.4¢/kWh. ► NC residential rates are below the national average, so such a savings is unlikely.

Electricity market players subgroup report

International Nuclear Information System (INIS)

Borison, A.

1990-03-01

The purpose of this study is to examine competition in the electric power industry from an ''industrial organization'' point of view. The remainder of this report is organized as follows. Chapter 2 describes the ''industrial organization'' approach used to analyze the electric power market. Industrial organization emphasizes specific market performance criteria, and the impact of market structure and behavior on performance. Chapter 3 identifies the participants in the electric power market, grouped primarily into regulated producers, unregulated producers, and consumers. Chapter 4 describes the varieties of electric power competition, organized along two dimensions: producer competition and consumer competition. Chapters 5 and 6 identify the issues raised by competition along the two dimensions. These issues include efficiency, equity, quality, and stability. Chapters 7 through 9 describe market structure, behavior and performance in three competitive scenarios: minimum competition, maximum competition, and moderate competition. Market structure, behavior and performance are discussed, and the issues raised in Chapters 5 and 6 are discussed in detail. Chapter 10 provides conclusions about ''winners and losers'' and identifies issues that require further study

Competition ambiguities. Electricite de France and the electricity market liberalization

International Nuclear Information System (INIS)

Boiteux, M.

2007-04-01

The European Union decided to open the electricity market to the competition and the last step will be in July 2007. Meanwhile the first part, the opening to big consumers, is a deception. The market saw an increase of the electricity prices. The author explains the effects of the liberalization, presenting the inevitable limits of the competition, the disappointing evaluation, the historical aspects of the electric market facing the today situation. (A.L.B.)

Institutional and programmatic suggestions for satisfying public policy responsibilities in a retail competitive electric industry

Energy Technology Data Exchange (ETDEWEB)

Tonn, B.E.; Schweitzer, M. [Oak Ridge National Lab., TN (United States)

1997-01-01

The emergence of retail competition in the US electric power industry places at risk various environmental and social programmes such as demand side management, low income programmes and renewable energy. This paper presents institutional and programmatic suggestions for satisfying these kinds of public policy responsibilities in a disintegrated industry. Suggestions include customer owned electricity franchises, electricity facility siting marketplaces, electric industry foresight councils, model systems programmes, integrated social services programmes, collaborative electric service programmes, ISO standards and portfolio standards. These recommendations would be funded by a national transmission charge, a state level distribution charge and franchise level sales taxes, to be paid by transmission organizations, distribution organizations and electricity consumers, respectively. (author)

Electric power in Europe: towards a competitive oligopoly?; L'Europe electrique: vers un oligopole concurrentiel?

Energy Technology Data Exchange (ETDEWEB)

Huby, J.; Noilhan, F.; Sauvage, Ph

2002-09-01

The Electricity Sector of the European Union has experienced very deep changes in the last decade, in the wake of the 1996 'Electricity Directive'. In most Member States, companies that once enjoyed the position of de facto or de jure monopolists have been facing an increasing competitive pressure, while development of cross-border trade combined with cross-border Mergers and Acquisitions indicates a deeper European integration. It seems that the 'internal market in Electricity', targeted by the 1996 Directive, is slowly but surely taking shape. The present study intends to draw a picture of the recent evolution in the European Electricity Sector and to identify the challenges and options the European public authorities are now facing. Our starting point is an in-depth analysis of the idiosyncrasies of the Electricity Sector in general and of the constraints they impose on the market design. We move then to the peculiarities of the 'Continental Europe', an area including France, Germany, the Benelux and the 'electric peninsulas' of Italy and Spain, but excluding the United Kingdom and the Scandinavian countries. The latter have indeed a longer and quite different experience of liberalization. We then describe the current regulatory and legislative state of the play and try to identify clear-cut tendencies for the future evolution. We conclude that the 'internal market in Electricity' is far from completion and that the strategy adopted by the European Union seems to be that of a slow and cautious deepening of reforms that are already 'on the way'. Thus one can anticipate that the present framework will not - and maybe should not - experience a radical upheaval. After having built up the setting, we focus on the industrial organisation of the sector. It seems to us that the consolidation that took place in 'Continental Europe' during the last five years is now settling down. Seven or eight major

Description of the electric power and energy trade in Finland

International Nuclear Information System (INIS)

Komulainen, K.

1992-01-01

The Finnish State has traditionally controlled the import of electricity, larger related investments and pricing. Lately, a market orientated economic policy has influenced energy policy and the amount of state control has gradually decreased. Decisions have yet to be made with regard to the fifth nuclear power reactor. The paper deals briefly with the subjects of the electric power, natural gas and oil markets. Finland's transmission network has connections to the former Russia and the Baltic countries. According to agreements within the European Community, Finland must now make changes in its electric power supply structure. Competition will be encouraged and monopolies discouraged. Pricing shall be transparent, and power plants must present written documentation for their management system, price regulations etc. A law must be passed to legitimate trade across the country's borders. Emphasis will be laid on energy conservation and energy research and consultant services. It is claimed that Finland's level of technology in this area lives up to international standards. (AB)

European Competition Law in the electricity sector

International Nuclear Information System (INIS)

Hiller, P.

2001-09-01

The first part gives an overview on the implementation of the Electricity Directive 96/92 in the member states of the European Union and on the still missing preconditions for a single market in the electricity sector. The second part deals with the main elements of the European merger control (market definition, market domination), the decisions in the electricity sector and analyses the impact of the Electricity Directive 96/92 EG on future merger decisions in this sector. The third part examines the role of the articles 81 and 82 EGV to secure competition in the electricity market. (author)

Marginal CO2 cost pass-through under imperfect competition in power markets

International Nuclear Information System (INIS)

Chernyavs'ka, Liliya; Gulli, Francesco

2008-01-01

In line with economic theory, carbon ETS determines a rise in marginal cost equal to the carbon opportunity cost regardless of whether carbon allowances are allocated free of charge or not. This paper aims at evaluating to what extent firms in imperfectly competitive markets will pass-through into electricity prices the increase in cost. By using the load duration curve approach and the dominant firm with competitive fringe model, we show that the result is ambiguous. The increase in price can be either lower or higher than the marginal CO 2 cost, depending on several structural factors: the degree of market concentration, the available capacity (whether there is excess capacity or not), the power plant mix in the market and the power demand level (peak vs. off-peak hours). The empirical analysis of the Italian context (an emblematic case of imperfectly competitive market), which can be split into four sub-markets with different structural features, provides a contribution supporting the model predictions. Market power, therefore, would determine a significant deviation from the 'full pass-through' rule but we cannot know the sign of this deviation, a priori, i.e. without before taking carefully into account the structural features of the power market. (author)

Green power: electricity's blue box

International Nuclear Information System (INIS)

Paterson, M.

2002-01-01

The concept of green power is taking hold, and the speaker briefly outlined the various options available at the moment, such as low impact hydro, wind, solar, and biomass. The electrical generation mix will be affected as a result of the provision of alternate power sources of energy to the community. It is possible for members of the community to make a well-informed choice as the eco-logo is the official certification of green products and power. Wind turbine interference with bird migration represents one of the main concerns attributed to wind power along with the generation of noise. The speaker indicated that the turbines are mostly located away from migration routes and that they turn very slowly, therefore not likely to cause a noise pollution problem for the public. The higher cost associated with green power causes a problem when compared with the cost or more traditional energy generation methods. Until they become more competitive, green power alternatives only fill a niche market. Ontario Power Generation is determined to assist the community with a move toward green energy in the future, especially given its position as an industry leader. refs., figs

Environmental policies in competitive electricity markets

NARCIS (Netherlands)

Langestraat, R.

2013-01-01

In this thesis we model and analyze several environmental policies in an existing mathematical representation of a perfectly competitive electricity market. We contribute to the literature by theoretically and numerically establishing a number of effects of environmental policies on investment

Optimization of NPP performance and service life in a competitive electricity market

International Nuclear Information System (INIS)

Gueorguiev, B.; Spielgelberg - Planner, R.

2000-01-01

This paper discusses how the competitive electricity market has influenced nuclear power plant operations, with a focus on optimisation of NPP performance and plant service life, and how the IAEA programme has addressed some of this issues. The definitions of Plant Life, Operational Life, Design Life and Periodical Safety Reviews are developed in the paper in order to differentiate between the terms and to show the significance in terms of Plant Life Management

Market Power in Power Markets: Evidence from Forward Prices of Electricity

DEFF Research Database (Denmark)

Christensen, Bent Jesper; Jensen, Thomas Elgaard; Mølgaard, Rune

We examine the forward market for electricity for indications of misuse of market power, using a unique data set on OTC price indications posted by Elsam A/S, the dominant producer in Western Denmark, which is one of the price areas under the Nordic power exchange Nord Pool. The Danish Competition...... Council (the regulatory government agency) has ruled that Elsam has used its dominant position to obtain excessive spot prices over a period from July 2003 through December 2006. We show that significant forward premia exist, and that they are related both to spot market volatility and misuse of market...... are consistent across forward premium regressions and structural forward pricing models....

Creating a competitive electricity market in Ontario - The energy consumer perspective

International Nuclear Information System (INIS)

Ford, M.

1997-01-01

The large consumers' perspective on the Ontario Government's decision to delay action on restructuring the electric power industry was provided, and recommendations were offered as to the best course of action that the Government ought to take. Ontario Hydro's proposal to restructure itself into separate generation, transmission and retail corporations, and to introduce competition into the Corporation was attacked as unworkable, in that it could not help but encourage price manipulation. The large consumer group also argued that retail distribution in Ontario needs major rationalization without an Ontario Hydro presence. In place of the Ontario Hydro proposal the Association of Major Power Consumers in Ontario (AMPCO) recommends a separate transmission system including an independent system operator, a restructuring of local distribution within a definite time frame and consistent criteria, to be worked out by municipal utilities and Ontario Hydro Retail, and establishment of a Transition Authority independent of Ontario Hydro with a mandate to carry out these changes. While the Ontario Government appears to be unlikely to undertake such a'risky' initiative at this stage of its mandate, significant change, including competition, remains inevitable. It is not a question of whether, but when a fully competitive energy market in Ontario will become a reality. tabs., figs

Re-powering and site recycling in a competitive environment

International Nuclear Information System (INIS)

Taylor, A.; Kahn, E.P.

1991-03-01

Re-powering and site recycling are strategies designed to expand electric generating capacity by using depreciated assets. The resource base for the these strategies is large. By 1995, over 170,000 MW of fossil-fired capacity will be in excess of thirty years old, and approaching the end of its conventional economic lifetime. This paper explores how these assets might be developed using competitive market forces. While some re-powering is being pursued under traditional ratebase regulation, there are four other generic alternatives. These are: (1) utility investment at fixed prices with regulatory pre-approval, (2) utility investment under competitive bidding, (3) utility leasing for private producer development, and (4) utility sale of sites for private producer development. Issues associated with each alternative are explored and illustrated with examples. State regulatory policy will be the critical determinant of whether a market develops for depreciated power plants. Financial incentives will stimulate utilities to re-deploy depreciated assets. This means some form of profit-sharing between customers and shareholders of the grains from asset sales. Different approaches to profit sharing are reviewed. These developments are still in an experimental state, however, and no single approach appears to have emerged as a dominant trend. 36 refs., 1 tab

Transmission rights and market power on electric power networks. 2. Physical rights

International Nuclear Information System (INIS)

Joskow, Paul; Tirole, Jean

1999-01-01

This discussion paper examines physical transmission rights where the capacity of each potentially congested interface is defined and the rights to use the congested interfaces are created and allocated in some way for suppliers and consumers. The way in which the allocation of physical rights affects competition or increases the buyers or sellers market power in the power generation market when a transmission interface is congested, and how rights markets with different microstructures allocate physical rights and determine rights prices are explored. An electricity market with physical transmission rights in the absence of capacity release rules, and physical transmission rights and market power are addressed. Loop flows, and capacity release rules are discussed. (UK)

Competition and PUHCA reform

International Nuclear Information System (INIS)

Williams, P.L.

1991-01-01

This article examines the national energy policy legislation being developed with respect to Public Utilities Holding Company Act issues. The topics of the article include the proposals to encourage competition among electric power producers, those involved in the process, qualifying facilities, independent power producers, competition and efficiency, and the outlook for reform

Successful renewable energy development in a competitive electricity market: A Texas case study

International Nuclear Information System (INIS)

Zarnikau, Jay

2011-01-01

The development of renewable energy in markets with competition at wholesale and retail levels poses challenges not present in areas served by vertically-integrated utilities. The intermittent nature of some renewable energy resources impact reliability, operations, and market prices, in turn affecting all market participants. Meeting renewable energy goals may require coordination among many market players. These challenges may be successfully overcome by imposing goals, establishing trading mechanisms, and implementing operational changes in competitive markets. This strategy has contributed to Texas' leadership among all US states in non-hydro renewable energy production. While Texas has been largely successful in accommodating over 9000 MW of wind power capacity, this extensive reliance upon wind power has also created numerous problems. Higher levels of operating reserves must now be procured. Market prices often go negative in the proximity of wind farms. Inaccurate wind forecasts have led to reliability problems. Five billion dollars in transmission investment will be necessary to facilitate further wind farm projects. Despite these costs, wind power is generally viewed as a net benefit. - Research Highlights: → Texas rapidly emerged as a leader in renewable energy development. → This state's experiences demonstrate that the right combination of policies to lead to rapid renewable energy development in a region with a very competitive electricity market. → Wind power development has lead to various operational challenges.

More competition: Threat or chance for financing renewable electricity?

International Nuclear Information System (INIS)

Szabo, Sandor; Jaeger-Waldau, Arnulf

2008-01-01

The paper examines how increased competition in electricity markets may reshape the future electricity generation portfolio and its potential impact on the renewable energy (RE) within the energy mix. The present analysis, which is based on modelling investor behaviour with a time horizon up to 2030, considers the economic aspects and conditions for this development with a particular focus on the photovoltaics. These aspects include pure financial/investment factors, such as the expected returns in the sector, subsidisation of certain RE resources and other policies focusing on the energy sector (liberalisation, environmental policies and security of supply considerations). The results suggest that policies aiming at the expansion of renewable energy technologies and strengthening the competition in the electricity markets have mutually reinforcing effects. More competition can reduce the financial burden of the existing renewable support schemes and consequently help to achieve the already established RE targets. (author)

The electric power engineering handbook electric power transformer engineering

CERN Document Server

Harlow, James H

2012-01-01

Electric Power Transformer Engineering, Third Edition expounds the latest information and developments to engineers who are familiar with basic principles and applications, perhaps including a hands-on working knowledge of power transformers. Targeting all from the merely curious to seasoned professionals and acknowledged experts, its content is structured to enable readers to easily access essential material in order to appreciate the many facets of an electric power transformer.Topically structured in three parts, the book: * Illustrates for electrical engineers the relevant theories and pri

Price-based optimal control of electrical power systems

OpenAIRE

Jokic, A.

2007-01-01

During the past decade, electrical power systems have been going through some major restructuring processes. From monopolistic, highly regulated and one utility controlled operation, a system is being restructured to include many parties competing for energy production and consumption, and for provision of many of the ancillary services necessary for system operation. With the emergence of competitive markets as central operational mechanisms, the prime operational objective has shifted from ...

Equilibrium pricing in electricity markets with wind power

Science.gov (United States)

Rubin, Ofir David

precision is still low. Therefore, it is crucial that the uncertainty in forecasting wind power is considered when modeling trading behavior. Our theoretical framework is based on finding a symmetric Cournot-Nash equilibrium in double-sided auctions in both forwards and spot electricity markets. The theoretical framework allows for the first time, to the best of our knowledge, a model of electricity markets that explain two main empirical findings; the existence of forwards premium and spot market mark-ups. That is a significant contribution since so far forward premiums have been explained exclusively by the assumption of risk-averse behavior while spot mark-ups are the outcome of the body of literature assuming oligopolistic competition. In the next step, we extend the theoretical framework to account for deregulated electricity markets with wind power. Modeling a wind-integrated electricity market allows us to analyze market outcomes with respect to three main factors; the introduction of uncertainty from the supply side, ownership of wind power capacity and the geographical diversification of wind power capacity. For the purpose of modeling trade in electricity forwards one should simulate the information agents have regarding future availability of aggregate wind power. This is particularly important for modeling accurately traders' ability to predict the spot price distribution. We develop a novel numerical methodology for the simulation of the conditional distribution of regional wind power at the time of trading short-term electricity forwards. Finally, we put the theoretical framework and the numerical methodology developed in this study to work by providing a detailed computational experiment examining electricity market outcomes for a particular expansion path of wind power capacity.

Electricity prices in a competitive market: a preliminary analysis of the deregulated Thai electricity industry

International Nuclear Information System (INIS)

Pipattanasomporn, M.; Ongsakul, W.; Pacudan, R.; Lefevre, T.

2000-01-01

The electricity industry throughout the world is currently undergoing a significant transition towards restructuring and deregulation. Following this new legislation, Thailand has initiated an institutional and structural reform with a belief that this could be the best way forward for the Thai electricity supply industry (ESI) to improve efficiency, lower electricity prices, and tackle financial debts. This paper presents an analysis of the extent to which prices for generation services in a competitive market may differ from regulated electricity prices, if competitive prices are based on marginal costs and regulated prices are based on average costs, by using Thailand as a case study. (Author)

Issues affecting the electricity transmission system in Mexico under a competitive integrated model

Energy Technology Data Exchange (ETDEWEB)

Avila Rosales, M.A.; Gonzalez Flores, J. [Federal Electricity Commission, Mexico City (Mexico)

2008-07-01

The electricity sector in Mexico is undergoing a process of significant structural change. The traditional industry framework has been exposed to new market structures and greater competition, both of which are being introduced by changing regulations regarding who can generate, transmit, distribute and sell electricity. Mexico's power industry is changing to a competitive integrated model. Electricity industry restructuring is partly based on the assumption that transmission systems should be flexible, reliable, and open to all exchanges no matter where the suppliers and consumers of energy are located and who they are. However, neither the existing transmission systems nor its management infrastructure can fully support this open exchange. This paper described the primary issues affecting the transmission system in Mexico under a competitive environment and a transmission expansion planning approach that took the uncertainties associated with the location and size of new generating power stations into consideration in order to produce least-cost and robust transmission plans. The paper described the planning process, including a rigorous analysis of the economics of the resulting transmission plans. Specifically, the paper described the current regulatory framework and supply adequacy as well as current procedures and methodologies for transmission management and expansion planning. The transmission planning methodology was also presented. This included a minimum cost analysis; profit analysis; and least-cost transmission plan. It was concluded that the transmission expansion planning approach stressed that a horizon year viewpoint was important because transmission additions have long-term use. The transmission expansion planning approach, further defined the process of selecting transmission projects as one of comparing and optimizing attributes such as near-term needs; long-term utilization; contribution to overall reliability; and favorable or least

Examining the dark side of competition

International Nuclear Information System (INIS)

Blake, M.

1990-01-01

This article examines the effect that increased competition among electric power suppliers will have on overall service to the customer and to profits. Some topics discussed are the coexistence of competition and cooperation, electric utility profits at risk and the dark side of competition - business failures. The author feels there is a basic conflict between some of the features of the competitive market model and the obligation to serve

Coal competitiveness?

International Nuclear Information System (INIS)

Rogeaux, B.

2006-01-01

Will coal electrical plants be more competitive in the coming years? Answering this one cannot be limited to merely comparing estimates based on reference electricity production costs. The competitiveness of coal will indeed depend on the final product marketed, as the MWhs are not equal: is the purpose to produce base, half-base MWh? Does the electrical equipment structure require flexible MWh (for instance in the event of significant intermittent renewable energy amounts), and therefore plants able to adjust their power rapidly? But the competitiveness of coal will also depend on many factors that will correct reference cost estimates: uncertainties, risks, externalities. These factors will need to be appreciated on a case by case basis. We introduce some of the reasoning used to better appreciate the future competitiveness of coal, and the main factors conditioning it in three contrasting regions of the world: Europe, USA, china. (author)

Electricity regulation and electricity market reforms in China

International Nuclear Information System (INIS)

Ngan, H.W.

2010-01-01

The electricity industry of China has been in a process of reforms since the 1980s. This paper gives a review on the three main stages of reforms in China so as to trace out key features of various reform measures including those for power investment financing, the separation between government and power enterprises, and the division between power generation firms and power grids. The findings suggest that further regulatory change in China's electricity market reform is necessary when integration of the electricity markets and increased competition are paving the way ahead for a market-oriented structure. Prospective electricity regulation in the form of a strong legal system and effective institutions that protect market competition and promote appropriate incentives for efficiency are suggested in the paper. (author)

Power plays: Elusive electricity goals still light up Ontario and Alberta leaders

Energy Technology Data Exchange (ETDEWEB)

Lunan, D.

2002-10-07

Experiences with electric industry deregulation in Alberta and Ontario are discussed. It appears that opening up the market to competition has not lived up to the expectations of its proponents of a paradise of plentiful cheap power, although neither is it a swamp of shortages and sky-rocketing prices (disregarding start-up glitches) as characterized by those opposed to privatization of the electric utilities. The paper describes the many ups and downs of the debut of the deregulated electric power market in both provinces, the surprising reluctance of investors to enter the market, the unexpected surge of prices during periods of high demand, the frustration and rising dissatisfaction of residential consumers, and the efforts of regulatory agencies to make adjustments and bring a degree of stability to the system. The consumer billing complaints have benefited at least one segment of industry: it created a profitable business for software developers, such as Calgary-based UtilityNet, who offer power management products to large industrial and commercial consumers that allow them to track energy purchases, monitor risk management initiatives and confirm actual electricity use against budgets and utility billings. UtilityNet is also preparing applications software designed to calculate and track greenhouse gas emissions and identify emission reduction opportunities. In general, large-scale users of electricity appear to have achieved some of the promised benefits; residential consumers have yet to experience any meaningful benefit from the announced advantages of competition.

Applying mathematical finance tools to the competitive Nordic electricity market

International Nuclear Information System (INIS)

Vehvilaeinen, I.

2004-01-01

This thesis models competitive electricity markets using the methods of mathematical finance. Fundamental problems of finance are market price modelling, derivative pricing, and optimal portfolio selection. The same questions arise in competitive electricity markets. The thesis presents an electricity spot price model based on the fundamental stochastic factors that affect electricity prices. The resulting price model has sound economic foundations, is able to explain spot market price movements, and offers a computationally efficient way of simulating spot prices. The thesis shows that the connection between spot prices and electricity forward prices is nontrivial because electricity is a commodity that must be consumed immediately. Consequently, forward prices of different times are based on the supply-demand conditions at those times. This thesis introduces a statistical model that captures the main characteristics of observed forward price movements. The thesis presents the pricing problems relating to the common Nordic electricity derivatives, as well as the pricing relations between electricity derivatives. The special characteristics of electricity make spot electricity market incomplete. The thesis assumes the existence of a risk-neutral martingale measure so that formal pricing results can be obtained. Some concepts introduced in financial markets are directly usable in the electricity markets. The risk management application in this thesis uses a static optimal portfolio selection framework where Monte Carlo simulation provides quantitative results. The application of mathematical finance requires careful consideration of the special characteristics of the electricity markets. Economic theory and reasoning have to be taken into account when constructing financial models in competitive electricity markets. (orig.)

Strategic prospects of the electric power industry of Russia

Science.gov (United States)

Makarov, A. A.; Veselov, F. V.; Makarova, A. S.; Novikova, T. V.; Pankrushina, T. G.

2017-11-01

The prospects for the development of the electric power industry of Russia adopted at a regular stage of working out the Energy Strategy and the General Plan of Distribution of the Electric Power Facilities are discussed. The monitoring of the progress in the implementation of the Energy Strategies for the periods until 2020 and 2030 adopted in 2003 and 2009 has, in general, validated the correctness of the estimated volumes of the energy resource production under overestimation of the expected domestic demand owing to an excessively optimistic forecast of the real development of the economy. The priority lines of the national energy policy in electric power and allied industries proposed in the Energy Strategy for the period until 2035 are considered. The tools for implementation of most of the proposals and the effectiveness of their implementation have yet to be defined more concretely. The development of the energy sector and the electric power industry under the conservative and optimistic scenarios of the development of the country's economy has been predicted using the SCANER modeling and information system, viz., the dynamics of the domestic consumption, export, and production of the primary energy and the electric power has been determined and the commissioning and structure of the required generating capacities and the consumption of the basic types of the energy resources by the electric power industry and the centralized heat supply systems has been optimized. Changes in the economic efficiency of the nuclear and thermal power plants under the expected improvements on their cost and performance characteristics and an increase in the domestic fuel prices are presented. The competitiveness of the wind and solar power production under Russian conditions has been evaluated considering the necessity of reservation and partial duplication of their capacities when operated in the power supply systems. When optimizing the electric power industry as a subsystem

Report of study group 7.1: natural gas in competition with electric power in industrial applications

Energy Technology Data Exchange (ETDEWEB)

Youssef, Ch.; Tatsuda, T.

2000-07-01

This report consists of three sections. The first section is a brief general overview of all the issues that impact the competition between natural gas and electricity in industrial applications. The second section of this report focus on the all the marketing issues and provides detail analysis of the status of these issues in Europe, Japan and United States. The third section of this report is a detail review of the current status of the competition between gas technologies and electro-technologies, it also make recommendation for developing new gas technologies. The fourth section is a contribution from M. Pettersson and S. Stenstroem, Sweden, on infrared dryers. (authors)

Proceedings of the CERI 2002 electricity conference : getting a grip on power sector restructuring. CD-ROM ed.

International Nuclear Information System (INIS)

2002-01-01

Electric power restructuring in a global context was reviewed at this conference which examined how existing market structures can be improved to benefit all participants. Topics of discussion ranged from issues regarding future development of power generation and transmission, to developing trends, expectations and implications for consumers, power generators and energy service providers. The 7 sessions of the conference were entitled: (1) global lessons from restructuring, what works and what doesn't, (2) competition in electricity markets, (3) restructuring in Canada, (4) suggestions for power sector reform, (5) competition in future generation markets, (6) trading, financing and generation alternatives, and (7) transmission expansion. A total of 7 papers have been indexed separately for inclusion in the database. refs., tabs., figs

Market power in the European electricity market - The impacts of dry weather and additional transmission capacity

International Nuclear Information System (INIS)

Lise, Wietze; Hobbs, Benjamin F.; Hers, Sebastiaan

2008-01-01

This paper uses a static computational game theoretic model of a fully opened European electricity market and can take strategic interaction among electricity-producing firms into account. The model is run for a number of scenarios: first, in the baseline under perfect competition, the prices differ due to the presence of various generation technologies and a limited ability to exchange electricity among countries. In addition, when large firms exercise market power, the model runs indicate that prices are the highest in countries where the number of firms is low. Second, dry weather would increase the prices in the hydro-rich Nordic countries followed by the Alpine countries. The price response would be about 20% higher with market power. Third, more transmission capacity would lower the prices in countries with high prices and it also reduces the impact of market power. Hence, more transmission capacity can improve market competitiveness. (author)

Market power in the European electricity market-The impacts of dry weather and additional transmission capacity

Energy Technology Data Exchange (ETDEWEB)

Lise, Wietze [IBS Research and Consultancy, Agahamami Cadessi 1/6, Aga Han, Cihangir, 34433 Beyoglu, Istanbul (Turkey); Energy Markets and International Environmental Policy Group, ECN Policy Studies, Energy Research Centre of the Netherlands, Amsterdam (Netherlands)], E-mail: wietze.lise@ibsresearch.com; Hobbs, Benjamin F. [Department of Geography and Environmental Engineering, Johns Hopkins University, Baltimore, MD 21218 (United States); Hers, Sebastiaan [Energy Markets and International Environmental Policy Group, ECN Policy Studies, Energy Research Centre of the Netherlands, Amsterdam (Netherlands)

2008-04-15

This paper uses a static computational game theoretic model of a fully opened European electricity market and can take strategic interaction among electricity-producing firms into account. The model is run for a number of scenarios: first, in the baseline under perfect competition, the prices differ due to the presence of various generation technologies and a limited ability to exchange electricity among countries. In addition, when large firms exercise market power, the model runs indicate that prices are the highest in countries where the number of firms is low. Second, dry weather would increase the prices in the hydro-rich Nordic countries followed by the Alpine countries. The price response would be about 20% higher with market power. Third, more transmission capacity would lower the prices in countries with high prices and it also reduces the impact of market power. Hence, more transmission capacity can improve market competitiveness.

Market power in the European electricity market - The impacts of dry weather and additional transmission capacity

Energy Technology Data Exchange (ETDEWEB)

Lise, Wietze [IBS Research and Consultancy, Agahamami Cadessi 1/6, Aga Han, Cihangir, 34433 Beyoglu, Istanbul (Turkey); Energy Markets and International Environmental Policy Group, ECN Policy Studies, Energy Research Centre of the Netherlands, Amsterdam (Netherlands); Hobbs, Benjamin F. [Department of Geography and Environmental Engineering, Johns Hopkins University, Baltimore, MD 21218 (United States); Hers, Sebastiaan [Energy Markets and International Environmental Policy Group, ECN Policy Studies, Energy Research Centre of the Netherlands, Amsterdam (Netherlands)

2008-04-15

This paper uses a static computational game theoretic model of a fully opened European electricity market and can take strategic interaction among electricity-producing firms into account. The model is run for a number of scenarios: first, in the baseline under perfect competition, the prices differ due to the presence of various generation technologies and a limited ability to exchange electricity among countries. In addition, when large firms exercise market power, the model runs indicate that prices are the highest in countries where the number of firms is low. Second, dry weather would increase the prices in the hydro-rich Nordic countries followed by the Alpine countries. The price response would be about 20% higher with market power. Third, more transmission capacity would lower the prices in countries with high prices and it also reduces the impact of market power. Hence, more transmission capacity can improve market competitiveness. (author)

Small-scale CDM projects in a competitive electricity industry: How good is a simplified baseline methodology?

International Nuclear Information System (INIS)

Shrestha, Ram M.; Abeygunawardana, A.M.A.K.

2007-01-01

Setting baseline emissions is one of the principal tasks involved in awarding credits for greenhouse gas emission (GHG) mitigation projects under the Clean Development Mechanism (CDM). An emission baseline has to be project-specific in order to be accurate. However, project-specific baseline calculations are subject to high transaction costs, which disadvantage small-scale projects. For this reason, the CDM-Executive Board (CDM-EB) has approved simplified baseline methodologies for selected small-scale CDM project categories. While the simplified methods help reduce the transaction cost, they may also result in inaccuracies in the estimation of emission reductions from CDM projects. The purpose of this paper is to present a rigorous economic scheduling method for calculating the GHG emission reduction in a hypothetical competitive electricity industry due to the operation of a renewable energy-based power plant under CDM and compare the GHG emission reduction derived from the rigorous method with that obtained from the use of a simplified (i.e., standardized) method approved by the CDM-EB. A key finding of the paper is that depending upon the level of power demand, prices of electricity and input fuels, the simplified method can lead to either significant overestimation or substantial underestimation of emission reduction due to the operation of renewable energy-based power projects in a competitive electricity industry

Competitive economics of nuclear power

International Nuclear Information System (INIS)

Hellman, R.

1981-01-01

Some 12 components of a valid study of the competitive economics of a newly ordered nuclear power plant are identified and explicated. These are then used to adjust the original cost projections of four authoritative studies of nuclear and coal power economics

Power Cable Fault Recognition Based on an Annealed Chaotic Competitive Learning Network

Directory of Open Access Journals (Sweden)

Xuebin Qin

2014-09-01

Full Text Available In electric power systems, power cable operation under normal conditions is very important. Various cable faults will happen in practical applications. Recognizing the cable faults correctly and in a timely manner is crucial. In this paper we propose a method that an annealed chaotic competitive learning network recognizes power cable types. The result shows a good performance using the support vector machine (SVM and improved Particle Swarm Optimization (IPSO-SVM method. The experimental result shows that the fault recognition accuracy reached was 96.2%, using 54 data samples. The network training time is about 0.032 second. The method can achieve cable fault classification effectively.

State-of-the-art research: optimal investment in market-based electric power systems

Energy Technology Data Exchange (ETDEWEB)

Hope, Einar; Skjeret, Frode

2008-04-15

The purpose of this state-of-the-art research paper is to surveying the literature on investment in market based electric power systems as a background for identifying and discussing some important issues in the optimal design and operation of such systems. A fundamental distinction has to be made between investment in the competitive part of the power system (generation and trading) on the one hand and the natural monopoly part (network infrastructure) on the other. The paper starts with a listing and discussion on market characteristics and properties of electric power and goes on to discussing performance criteria and potential sources of market failure for optimal electric power investment. After the literature survey there is a discussion of conditions under which optimal investment may occur. (author). 78 refs., figs

Competitive strategies and models of business management in the Brazilian electric sector; Estrategias competitivas e modelos de gestao empresarial no setor eletrico brasileiro

Energy Technology Data Exchange (ETDEWEB)

Figueiredo, Breno Pinto

1999-12-15

This study draws attention to the fact that most of the discussions and studies related to the restructuring of electricity industry in Brazil, almost exclusively address the technological and institutional aspects involved in the question, when competitive strategies and management models to be followed by power companies are essential to ensure the consolidation of new design of the institutional industry in the daily operation of business. The proposition is that the evaluation of competitive strategies and management models can be a working tool for the State, in addition to offer to the electric power companies administrators an initial map or check list for planning and operation of its business, in the institutional model that is being implemented for the Brazilian electric sector.

Incorporating network effects in a competitive electricity industry. An Australian perspective

International Nuclear Information System (INIS)

Outhred, H.; Kaye, J.

1996-01-01

The role of an electricity network in a competitive electricity industry is reviewed, the nation's experience with transmission pricing is discussed, and a 'Nodal Auction Model' for incorporating network effects in a competitive electricity industry is proposed. The model uses a computer-based auction procedure to address both the spatial issues associated with an electricity network and the temporal issues associated with operation scheduling. The objective is to provide a market framework that addresses both network effects and operation scheduling in a coordinated implementation of spot pricing theory. 12 refs

Fujian electric system analysis and nuclear power planning

International Nuclear Information System (INIS)

Lin Jianwen; Fu Qiang; Cheng Ping

1994-11-01

The objective of the study is to conduct a long term electric expansion planning and nuclear power planning for Fujian Province. The Wien Automatic System Planning Package (WASP-III) is used to optimize the electric system. Probabilistic Simulation is one of the most favorite techniques for middle and long term generation and production cost planning of electric power system. The load duration curve is obtained by recording the load data of a time interval into a monotone non-increasing sense. Polynomial function is used to describe the load duration curve (LDC), and this LDC is prepared for probabilistic simulation in WASP-III. WASP-III is a dynamic optimizing module in the area of supply modelling. It could find out the economically optimal expansion plan for a power generating system over a period of up to thirty years, with the constraints given by the planners. The optimum is evaluated in terms of minimum discounted total costs. Generating costs, amount of energy not served and reliability of the system are analyzed in the system expansion planning by using the probabilistic simulation method. The following conclusions can be drawn from this study. Hydro electricity is the cheapest one of all available technologies and resources. After the large hydro station is committed at the end of 1995, more base load power plants are needed in the system. Coal-fired power plants with capacity of 600 MWe will be the most competitive power plants in the future of the system. At the end of the studying period, about half of the stalled capacity will be composed of these power plants. Nuclear power plants with capacity of 600 MWe are suitable for the system after the base load increases to a certain level. Oil combustion units will decrease the costs of the system. (12 tabs., 6 figs.)

Achieving a competitive edge -- A comparison/contrast of two examples

International Nuclear Information System (INIS)

Scholl, P.L.; Ward, D.P.

1996-01-01

As the electric power industry moves from the regulated monopoly environment to one of open competition, the need to achieve and maintain a competitive advantage becomes critical. In the competitive market, having a competitive edge means having goods and services that the market prefers, i.e., buyers in the market prefer to purchase your goods and services rather than your competitors'. For electric power generating facilities, the market is the wholesale market, and because electric power is essentially a commodity, i.e., a megawatthour from one generating facility is the same as a megawatthour from another generating facility, the primary distinguishing factor in the market is price.d therefore, having a competitive edge in the market means having a lower price than the competition. This paper describes the basic elements of achieving a competitive edge and discusses how these elements are being used by two utilities with very different circumstances to improve their competitive positions

Electric power annual, 1991

International Nuclear Information System (INIS)

1993-01-01

The Electric Power Annual is prepared by the Survey Management Division; Office of Coal, Nuclear, Electric and Alternate Fuels; Energy Information Administration (EIA); US Department of Energy. The 1991 edition has been enhanced to include statistics on electric utility demand-side management and nonutility supply. ''The US Electric Power Industry at a Glance'' section presents a profile of the electric power industry ownership and performance, and a review of key statistics for the year. Subsequent sections present data on generating capability, including proposed capability additions; net generation; fossil-fuel statistics; electricity sales, revenue, and average revenue per kilowatthour sold; financial statistics; environmental statistics; electric power transactions; demand-side management; and nonutility power producers. In addition, the appendices provide supplemental data on major disturbances and unusual occurrences in US electricity power systems. Each section contains related text and tables and refers the reader to the appropriate publication that contains more detailed data on the subject matter. Monetary values in this publication are expressed in nominal terms

Electric power annual 1992

Energy Technology Data Exchange (ETDEWEB)

1994-01-06

The Electric Power Annual presents a summary of electric utility statistics at national, regional and State levels. The objective of the publication is to provide industry decisionmakers, government policymakers, analysts and the general public with historical data that may be used in understanding US electricity markets. The Electric Power Annual is prepared by the Survey Management Division; Office of Coal, Nuclear, Electric and Alternate Fuels; Energy Information Administration (EIA); US Department of Energy. ``The US Electric Power Industry at a Glance`` section presents a profile of the electric power industry ownership and performance, and a review of key statistics for the year. Subsequent sections present data on generating capability, including proposed capability additions; net generation; fossil-fuel statistics; retail sales; revenue; financial statistics; environmental statistics; electric power transactions; demand-side management; and nonutility power producers. In addition, the appendices provide supplemental data on major disturbances and unusual occurrences in US electricity power systems. Each section contains related text and tables and refers the reader to the appropriate publication that contains more detailed data on the subject matter. Monetary values in this publication are expressed in nominal terms.

Deregulation and competition in the electric utility marketplace

International Nuclear Information System (INIS)

Allen, J.E.

1995-01-01

This paper addresses the impact of deregulation and competition in the electric utility marketplace as an extension of the deregulation of the airlines, and natural gas, telephone and trucking industries. The topics of the paper include the events and circumstances leading to deregulation, those involved in the competition, and a scenario for how the industry will develop over the next 20 years

Electrical power distribution control methods, electrical energy demand monitoring methods, and power management devices

Science.gov (United States)

Chassin, David P [Pasco, WA; Donnelly, Matthew K [Kennewick, WA; Dagle, Jeffery E [Richland, WA

2011-12-06

Electrical power distribution control methods, electrical energy demand monitoring methods, and power management devices are described. In one aspect, an electrical power distribution control method includes providing electrical energy from an electrical power distribution system, applying the electrical energy to a load, providing a plurality of different values for a threshold at a plurality of moments in time and corresponding to an electrical characteristic of the electrical energy, and adjusting an amount of the electrical energy applied to the load responsive to an electrical characteristic of the electrical energy triggering one of the values of the threshold at the respective moment in time.

An Assessment of the Economics of Future Electric Power Generation Options and the Implications for Fusion

International Nuclear Information System (INIS)

Delene, J.G.; Hadley, S.; Reid, R.L.; Sheffield, J.; Williams, K.A.

1999-01-01

This study examines the potential range of electric power costs for some major alternatives to fusion electric power generation when it is ultimately deployed in the middle of the 21st century and, thus, offers a perspective on the cost levels that fusion must achieve to be competitive. The alternative technologies include coal burning, coal gasification, natural gas, nuclear fission, and renewable energy. The cost of electricity (COE) from the alternatives to fusion should remain in the 30-50 mils/kWh (1999 dollars) range of today in carbon sequestration is not needed, 30-60 mils/kWh if sequestration is required, or as high as 75 mils/kWh for the worst-case scenario for cost uncertainty. The reference COE range for fusion was estimated at 70-100 nmils/kWh for 1- to 1.3-GW(e) scale power plants. Fusion costs will have to be reduced and/or alternative concepts derived before fusion will be competitive with the alternatives for the future production of electricity. Fortunately, there are routes to achieve this goal

The Ambiguities of Competition. Electricite de France and the Privatization of Electricity

International Nuclear Information System (INIS)

Boiteux, M.

2007-01-01

The European Union has decided that electricity supply should be opened up to greater competition; in France the last phase will be reached in July 2007. However competition, which is supposed to bring about lower prices and improvements in the quality of service, threatens in fact to deliver none of these benefits, according to the honorary president of Electricite de France (EDF)., One reason for this is that the EDF's prices were already well below those in the rest of Europe because the firm has always been strictly managed; this factor has been much more important than the advantages which some consider that the EDF derives from its nuclear power plants. Another reason is that there are inevitable limits to competition because of the 'natural monopolies' related to the distribution networks. Lastly, Marcel Boiteux, arguing from the EDF's experience, warns us against the Brussels authorities' rather too blind faith in market forces. He demonstrates here, adducing specific examples, how naive it is to imagine that the best results are spontaneously achieved by the market alone. Along the way, he offers justifications for France's decision to rely on nuclear power and the investments made to that end; he points out that, while the EDF did indeed enjoy some state support, the state benefited much more. (author)

Prospects for competitive nuclear power into the 21st century

International Nuclear Information System (INIS)

Shapar, H.K.; Sasaki, T.; Thexton, H.E.

1986-10-01

Nuclear power stations committed today will be commissioned in the mid- to late-1990s and will operate for most of their lives in the 21st century. Utilities considering the nuclear option for new increments of capacity are, therefore, required to make judgements now on the competitiveness of nuclear plants well beyond the turn of the century. Reactors committed for mid-1990 startup could have a lifetime competitive cost advantage of 20% to 80% over coal-fired plants in most NEA areas studied except for some parts of North America where low cost coal is available. Nuclear plants would retain an economic advantage in most countries even if they were to be used for load-following with resultant lifetime capacity (load) factors as low as about 60% (or even lower in many countries). Uranium resources are sufficiently large that fuel supply should not constrain nuclear power development well into the 21st century, as long as uranium prices provide a market incentive for continued exploration and mine development. Uranium prices seem unlikely to rise to a level which would remove nuclear's advantage within the next several decades. There is apparently no technological reason why the ''back-end'' of the fuel cycle (spent fuel transportation, storage, reprocessing and disposal of high level waste) and decommissioning of reactors should constrain further deployment of nuclear power. While the costs of these activities appear high in absolute terms, they will be relatively low per unit of electricity generated. Thus, even though there remain uncertainties regarding these future costs, they should have little impact on electricity consumers. (author)

Nuclear power in Europe today and its potential competitive role for tomorrow

International Nuclear Information System (INIS)

Hartmut, B.

1996-01-01

Nuclear power is nowadays one of the cornerstones of the occidental Europe electricity supply system. The electricity European market liberalization as well as the uncertainties resulting from acceptabilities problems (which are due to political risks) represent nevertheless a great challenge for the future use of nuclear power. Concerning the energy consumption, the financial advantage of new nuclear power plants compared with fossil-fired power plants seems to be still possible in the future, but all investment decision should however consider in addition to these less high costs the political financial costs which are difficult to appreciate in a lot of European countries. On account of the current conditions, it would be practically senseless to build new nuclear power plants in these countries. The investment safety required for the construction of new plants is only given unfortunately in a few countries, in France for instance. Without any political conditions modification, new nuclear power plants setting up in most of the occidental European countries will be in a near future probably exceptional and with risks division. However, we must not forget that the nuclear power disposes of the potential which allows to reach objectives of a capital importance on the social plan as for instance the CO 2 decrease, the resources economy, the electric power price stability and the employment protection. In the future, the electric power plants will not be in measure to reach the objectives which have been theirs until now as those will induce disadvantages for competitiveness. After the liberalization, it is then the duty of the political responsible persons to establish a sufficient legal protection for the future use of nuclear power and to create thus the ecological and economical potential bound to these ones. (O.M.)

Auction development for the price-based electric power industry

Science.gov (United States)

Dekrajangpetch, Somgiat

The restructuring of the electric power industry is to move away from the cost-based monopolistic environment of the past to the priced-based competitive environment. As the electric power industry is restructuring in many places, there are still many problems that need to be solved. The work in this dissertation contributes to solve some of the electric power auction problems. The majority of this work is aimed to help develop good markets. A LaGrangian relaxation (LR) Centralized Daily Commitment Auction (CDCA) has been implemented. It has been shown that the solution might not be optimal nor fair to some generation companies (GENCOs) when identical or similar generating units participate in a LR CDCA based auction. Supporting information for bidding strategies on how to change unit data to enhance the chances of bid acceptance has been developed. The majority of this work is based on Single Period Commodity Auction (SPCA). Alternative structures for the SPCA are outlined. Whether the optimal solution is degenerated is investigated. Good pricing criteria are summarized and the pricing method following good pricing criteria is developed. Electricity is generally considered as a homogeneous product. When availability level is used as additional characteristic to distinct electricity, electricity can be considered a heterogeneous product. The procedure to trade electricity as a heterogeneous product is developed. The SPCA is formulated as a linear program. The basic IPLP algorithm has been extended so that sensitivity analysis can be performed as in the simplex method. Sensitivity analysis is used to determine market reach. Additionally, sensitivity analysis is used in combination with the investigation of historical auction results to provide raw data for power system expansion. Market power is a critical issue in electric power deregulation. Firms with market power have an advantage over other competitor firms in terms of market reach. Various approaches to

Wind power electricity: the bigger the turbine, the greener the electricity?

Science.gov (United States)

Caduff, Marloes; Huijbregts, Mark A J; Althaus, Hans-Joerg; Koehler, Annette; Hellweg, Stefanie

2012-05-01

Wind energy is a fast-growing and promising renewable energy source. The investment costs of wind turbines have decreased over the years, making wind energy economically competitive to conventionally produced electricity. Size scaling in the form of a power law, experience curves and progress rates are used to estimate the cost development of ever-larger turbines. In life cycle assessment, scaling and progress rates are seldom applied to estimate the environmental impacts of wind energy. This study quantifies whether the trend toward larger turbines affects the environmental profile of the generated electricity. Previously published life cycle inventories were combined with an engineering-based scaling approach as well as European wind power statistics. The results showed that the larger the turbine is, the greener the electricity becomes. This effect was caused by pure size effects of the turbine (micro level) as well as learning and experience with the technology over time (macro level). The environmental progress rate was 86%, indicating that for every cumulative production doubling, the global warming potential per kWh was reduced by 14%. The parameters, hub height and rotor diameter were identified as Environmental Key Performance Indicators that can be used to estimate the environmental impacts for a generic turbine. © 2012 American Chemical Society

Improving the quality of competition in the US power generation market: Lessons learned in the UK

International Nuclear Information System (INIS)

McNair, K.; Tivey, B.

1993-01-01

This presentation examines the effects of deregulation and liberalization of the power generation market in the United Kingdom and the potential for translation of that experience to other markets. The topics of the presentation include the changes in the UK, the pool and electricity contracts, competition, continued state ownership of nuclear power plants, transitioning the coal industry to free market conditions, the benefits, and the impact of privatization on the National Power government agency

Opportunities for wind resources in the future competitive California power market

International Nuclear Information System (INIS)

Sezgen, O.; Marnay, C.; Bretz, S.; Markel, R.; Wiser, R.

1998-01-01

The goal of this work is to evaluate the profitability of wind development in the future competitive California power market. The viability of possible wind sites is assessed using a geographic information system (GIS) to determine the cost of development and Elfin, an electric utility production costing and capacity expansion model, to estimate the possible revenues and profits of wind farms at the sites. This approach improves on a simple profitability calculation by using site specific development cost calculations and by taking the effect of time varying market prices on revenues into account. The first component of the work is the characterization of wind resources suitable for use in production costing and capacity expansion models such as Elfin that are capable of simulating competitive electricity markets. An improved representation of California wind resources is built, using information collected by the California Energy Commission in previous site evaluations, and by using a GIS approach to estimating development costs at 36 specific sites. These sites, which have been identified as favorable for wind development, are placed on Digital Elevation Models and development costs are calculated based on distances to roads and transmission lines. GIS is also used to develop the potential capacity at each site by making use of the physical characteristics of the terrain, such as ridge lengths. In the second part of the effort, using a previously developed algorithm for simulating competitive entry to the California electricity market, Elfin is used to gauge the viability of wind farms at the 36 sites. The results of this exercise are forecasts of profitable development levels at each site and the effects of these developments on the electricity system as a whole. Results suggest that by the year 2030, about 7.5 GW of potential wind capacity can be profitably developed assuming rising natural gas prices. This example demonstrates that an analysis based on a

Electric power generation

International Nuclear Information System (INIS)

Pinske, J.D.

1981-01-01

Apart from discussing some principles of power industry the present text deals with the different ways of electric power generation. Both the conventional methods of energy conversion in heating and water power stations and the facilities for utilizing regenerative energy sources (sun, wind, ground heat, tidal power) are considered. The script represents the essentials of the lecture of the same name which is offered to the students of the special subject 'electric power engineering' at the Fachhochschule Hamburg. It does not require any special preliminary knowledge except for the general principles of electrical engineering. It is addressing students of electrical engineering who have passed their preliminary examination at technical colleges and universities. Moreover, it shall also be of use for engineers who want to obtain a quick survey of the structure and the operating characteristics of the extremely different technical methods of power generation. (orig.) [de

Electric power prices: variable tendency depending on the country

International Nuclear Information System (INIS)

Anon.

1999-01-01

The deregulation of the electric power sector is very much in the news in most countries and at different stages. A study carried out by the national utility service (NUS) in 17 countries worldwide takes stock of the influence of deregulation on electric power prices. According to this study, the most important price increases are found in 4 non-European countries (Norway, South Africa, USA, New Zealand) while the most important decreases are found within Europe (Sweden 20%, Denmark 15.6%, Italy 12% and Germany 8%). In France the decrease of tariffs reaches only 3%. This short paper analyzes the evolution of prices in the different countries selected in the study, but no real tendency is outlined as the stage of competition is different in each country. (J.S.)

Competitive electricity markets: One size should fit all

International Nuclear Information System (INIS)

Ruff, L.E.

1999-01-01

Various market models have been used to try to create competition in the electricity industry in various parts of the world, with varying degrees of success. But every electricity market that has produced reasonably effective and efficient competition has been based on some version of the same generic model. And most of the problems encountered by these markets--apart from problems due to structural flaws such as too few competitors--can be attributed to inconsistent or incomplete application of this basic model concept. In this sense, one size of market model really does fit all--or at least one size should fit all if the objective is to create effective and efficient competition for the benefit of consumers. Effort to slow or reverse the movement to an open spot market integrated with physical dispatch will create complexities and inefficiencies that benefit oligopolists and middlemen at the expense of smaller producers and final consumers

Competitive electricity markets: One size should fit all

Energy Technology Data Exchange (ETDEWEB)

Ruff, L.E.

1999-11-01

Various market models have been used to try to create competition in the electricity industry in various parts of the world, with varying degrees of success. But every electricity market that has produced reasonably effective and efficient competition has been based on some version of the same generic model. And most of the problems encountered by these markets--apart from problems due to structural flaws such as too few competitors--can be attributed to inconsistent or incomplete application of this basic model concept. In this sense, one size of market model really does fit all--or at least one size should fit all if the objective is to create effective and efficient competition for the benefit of consumers. Effort to slow or reverse the movement to an open spot market integrated with physical dispatch will create complexities and inefficiencies that benefit oligopolists and middlemen at the expense of smaller producers and final consumers.

Production in Italian industry: Electric power demand indicators

International Nuclear Information System (INIS)

Ajello, V.

1993-01-01

The effects of the recession in Italy were first evidenced during the period spanning 1990-1992 with a sharp drop in the international competitiveness of Italian products. This phase was then followed by a significant drop in internal demand, the devaluation of the Italian Lira and subsequent market uncertainty. This paper presents graphs of national and regional electric power production and consumption figures which reflect the downturn in the viability of the Italian economy, especially in the industrial sector

Multi-agent simulation of competitive electricity markets: Autonomous systems cooperation for European market modeling

International Nuclear Information System (INIS)

Santos, Gabriel; Pinto, Tiago; Morais, Hugo; Sousa, Tiago M.; Pereira, Ivo F.; Fernandes, Ricardo; Praça, Isabel; Vale, Zita

2015-01-01

Highlights: • Definition of an ontology allowing the communication between multi-agents systems. • Social welfare evaluation in different electricity markets. • Demonstration of the use of the proposed ontology between two multi-agents systems. • Strategic biding in electricity markets. • European electricity markets comparison. - Abstract: The electricity market restructuring, and its worldwide evolution into regional and even continental scales, along with the increasing necessity for an adequate integration of renewable energy sources, is resulting in a rising complexity in power systems operation. Several power system simulators have been developed in recent years with the purpose of helping operators, regulators, and involved players to understand and deal with this complex and constantly changing environment. The main contribution of this paper is given by the integration of several electricity market and power system models, respecting to the reality of different countries. This integration is done through the development of an upper ontology which integrates the essential concepts necessary to interpret all the available information. The continuous development of Multi-Agent System for Competitive Electricity Markets platform provides the means for the exemplification of the usefulness of this ontology. A case study using the proposed multi-agent platform is presented, considering a scenario based on real data that simulates the European Electricity Market environment, and comparing its performance using different market mechanisms. The main goal is to demonstrate the advantages that the integration of various market models and simulation platforms have for the study of the electricity markets’ evolution

Competition in decentralized electricity markets: Three papers on electricity auctions

Science.gov (United States)

Harbord, David William Cameron

This thesis consists of three self-contained papers on the analysis of electricity auctions written over a period of twelve years. The first paper models price competition in a decentralized wholesale market for electricity as a first-price, sealed-bid, multi-unit auction. In both the pure and mixed-strategy equilibria of the model, above marginal cost pricing and inefficient despatch of generating units occur. An alternative regulatory pricing rule is considered and it is shown that offering to supply at marginal cost can be induced as a dominant strategy for all firms. The second paper analyses strategic interaction between long-term contracts and price competition in the British electricity wholesale market, and confirms that forward contracts will tend to put downward pressure on spot market prices. A 'strategic commitment' motive for selling forward contracts is also identified: a generator may commit itself to bidding lower prices into the spot market in order to ensure that it will be despatched with its full capacity. The third paper characterizes bidding behavior and market outcomes in uniform and discriminatory electricity auctions. Uniform auctions result in higher average prices than discriminatory auctions, but the ranking in terms of productive efficiency is ambiguous. The comparative effects of other market design features, such as the number of steps in suppliers' bid functions, the duration of bids and the elasticity of demand are analyzed. The paper also clarifies some methodological issues in the analysis of electricity auctions. In particular we show that analogies with continuous share auctions are misplaced so long as firms are restricted to a finite number of bids.

An Assessment of the Economics of Future Electric Power Generation Options and the Implications for Fusion

International Nuclear Information System (INIS)

Delene, Jerry G.; Sheffield, John; Williams, Kent A.; Reid, R. Lowell; Hadley, Stan

2001-01-01

This study examines the potential range of electric power costs for some major alternatives to fusion electric power generation when it is ultimately deployed in the middle of the 21st century and, thus, offers a perspective on the cost levels that fusion must achieve to be competitive. The alternative technologies include coal burning, coal gasification, natural gas, nuclear fission, and renewable energy. The cost of electricity (COE) from the alternatives to fusion should be in a 30 to 53 mills/kW.h (1999 dollars) range if carbon sequestration is not needed, 30 to 61 mills/kW.h if sequestration is required, or as high as 83 mills/kW.h for the worst-case scenario for cost uncertainty. The reference COE range for fusion was estimated at 65 to 102 mills/kW.h for 1- to 1.3-GW(electric) scale power plants, based on the tokamak concept. Tokamak fusion costs will have to be reduced and/or cost-effective alternative nontokamak concepts devised before fusion will be competitive with the alternatives for the future production of electricity. Fortunately, there are routes to achieve this goal. Recent results from fusion experiments and developments in technology and engineering solutions indicate that lower cost fusion power plants are possible at the 1-GW(electric) level. Another general route for fusion to reduce costs is to go to large plant sizes [multigigawatts (electric)

Comparing electricity transitions: A historical analysis of nuclear, wind and solar power in Germany and Japan

International Nuclear Information System (INIS)

Cherp, Aleh; Vinichenko, Vadim; Jewell, Jessica; Suzuki, Masahiro; Antal, Miklós

2017-01-01

This paper contributes to understanding national variations in using low-carbon electricity sources by comparing the evolution of nuclear, wind and solar power in Germany and Japan. It develops and applies a framework for analyzing low-carbon electricity transitions based on interplay of techno-economic, political and socio-technical processes. We explain why in the 1970s–1980s, the energy paths of the two countries were remarkably similar, but since the 1990s Germany has become a leader in renewables while phasing out nuclear energy, whereas Japan has deployed less renewables while becoming a leader in nuclear power. We link these differences to the faster growth of electricity demand and energy insecurity in Japan, the easier diffusion of onshore wind power technology and the weakening of the nuclear power regime induced by stagnation and competition from coal and renewables in Germany. We show how these changes involve the interplay of five distinct mechanisms which may also play a role in other energy transitions. - Highlights: • We identify five mechanisms which play a role in national low-carbon electricity transitions. • Use of nuclear, wind and solar power in Germany and Japan diverged in the 1990s. • Wind power diffused to Germany from Denmark but different geography stalled it in Japan. • Demand growth and energy insecurity prompted nuclear power expansion in Japan. • Competition with domestic coal and wind led to the demise of nuclear power in Germany.

Implications of electric power sector restructuring on climate change mitigation in Argentina

Energy Technology Data Exchange (ETDEWEB)

Hasson, G; Bouille, D [Instituto de Economia Energetica, (Argentina); Redlinger, R [UNEP, (Denmark)

2000-05-01

The Argentine electricity industry has undergone fundamental reforms since 1992, involving large-scale privatisation, and competition in generation and wholesale power markets. In terms of climate change mitigation, these reforms have had the beneficial effect of encouraging improved generation efficiency among thermal power plants and improved end-use consumption efficiency among large industrial firms. However, the reforms have also had the negative effect (from a climate change perspective) of encouraging an ever-increasing use of natural gas combustion for electricity generation, greatly diminishing the role of hydroelectric power which had previously played an important role in the Agentine electricity sector. This report examines the current structure and regulations of the Argentine electricity system and analyses the forces at work which are influencing current technology choices, both in terms of power generation and end-use consumption. The report goes on to examine international experiences in promoting renewable energy and energy efficiency technologies; and finally, the report considers the applicability of these various policy mechanisms within the Agentine context. (EHS)

Risk management in a competitive electricity market

International Nuclear Information System (INIS)

Liu, Min; Wu, Felix F.

2007-01-01

In a competitive electricity market, it is necessary and important to develop an appropriate risk management scheme for trade with full utilization of the multi-market environment in order to maximize participants' benefits and minimize the corresponding risks. Based on the analyses to trading environments and risks in the electricity market, a layered framework of risk management for electric energy trading is proposed in this paper. Simulation results confirmed that trading among multiple markets is helpful to reduce the complete risk, and VaR provides a useful approach to judge whether the formed risk-control scheme is acceptable. (author)

Electric power system / emergency power supply

International Nuclear Information System (INIS)

Dorn, P.G.

1980-01-01

One factor of reliability of reactor safety systems is the integrity of the power supply. The purpose of this paper is a review and a discussion of the safety objectives required for the planning, licensing, manufacture and erection of electrical power systems and components. The safety aspects and the technical background of the systems for - the electric auxiliary power supply system and - the emergency power supply system are outlined. These requirements result specially from the safety standards which are the framework for the studies of safety analysis. The overall and specific requirements for the electrical power supply of the safety systems are demonstrated on a 1300 MW standard nuclear power station with a pressurized water reactor. (orig.)

Conceptual design of a demonstration reactor for electric power generation

International Nuclear Information System (INIS)

Asaoka, Y.; Hiwatari, R.; Okano, K.; Ogawa, Y.; Ise, H.; Nomoto, Y.; Kuroda, T.; Mori, S.; Shinya, K.

2005-01-01

Conceptual study on a demonstration plant for electric power generation, named Demo-CREST, was conducted based on the consideration that a demo-plant should have capacities both (1) to demonstrate electric power generation in a plant scale with moderate plasma performance, which will be achieved in the early stage of the ITER operation, and foreseeable technologies and materials and (2) to have a possibility to show an economical competitiveness with advanced plasma performance and high performance blanket systems. The plasma core was optimized to be a minimum size for both net electric power generation with the ITER basic plasma parameters and commercial-scale generation with advance plasma parameters, which would be attained by the end of ITER operation. The engineering concept, especially the breeding blanket structure and its maintenance scheme, is also optimized to demonstrate the tritium self-sustainability and maintainability of in-vessel components. Within the plasma performance as planned in the present ITER program, the net electric power from 0 MW to 500 MW is possible with the basic blanket system under the engineering conditions of maximum magnetic field 16 T, NBI system efficiency 50%, and NBI current drive power restricted to 200 MW. Capacities of stabilization of reversed shear plasma and the high thermal efficiency are additional factors for optimization of the advanced blanket. By replacing the blanket system with the advanced one of higher thermal efficiency, the net electric power of about 1000 MW is also possible so that the economic performance toward the commercial plant can be also examined with Demo-CREST. (author)

Carbon price instead of support schemes: wind power investments by the electricity market

International Nuclear Information System (INIS)

Petitet, Marie; Finon, Dominique; Janssen, Tanguy

2014-10-01

In this paper we study the development of wind power by the electricity market without any usual support scheme which is aimed at subsidizing non mature renewables, with the sole incentive of a significant carbon price. Long term electricity market and investment decisions simulation by system dynamics modelling is used to trace the electricity generation mix evolution over a 20-year period in a pure thermal system. A range of stable carbon price, as a tax could be, is tested in order to determine the value above which wind power development by market forces becomes economically possible. Not only economic competitiveness in terms of cost price, but also profitability against traditional fossil fuel technologies are necessary for a market-driven development of wind power. Results stress that wind power is really profitable for investors only if the carbon price is very significantly higher than the price required for making wind power MWh's cost price competitive with CCGT and coal-fired plants on the simplistic basis of levelized costs. In this context, the market-driven development of wind power seems only possible if there is a strong commitment to climate policy, reflected by the preference for a stable and high carbon price rather than a fuzzy price of an emission trading scheme. Besides, results show that market-driven development of wind power would require a sky-rocketing carbon price if the initial technology mix includes a share of nuclear plants even with a moratorium on new nuclear development. (authors)

Trends in prices to commercial energy consumers in the competitive Texas electricity market

International Nuclear Information System (INIS)

Zarnikau, Jay; Fox, Marilyn; Smolen, Paul

2007-01-01

To date, the price of electricity to commercial or business energy consumers has generally increased at greater rates in the areas of Texas where retail competition has been introduced than in areas that do not enjoy competition. Trends in commercial competitive prices have largely mirrored trends in residential prices. Market restructuring has tended to increase the sensitivity of retail electricity prices to changes in the price of natural gas, the marginal fuel used for generation in Texas. Consequently, the rapid increases in the commodity price of natural gas following restructuring led to increases in competitive electric rates which exceeded the increases in areas not exposed to restructuring, where the fuel component of electric rates tend to reflect a weighted average of the utilities' fuel costs. There is some evidence that pricing behavior by competitive retailers changed when the retailers affiliated with the incumbent utilities were permitted some pricing flexibility, resulting in a reduction in prices. (author)

Electricity prices in a competitive environment: Marginal cost pricing of generation services and financial status of electric utilities. A preliminary analysis through 2015

International Nuclear Information System (INIS)

1997-08-01

The emergence of competitive markets for electricity generation services is changing the way that electricity is and will be priced in the United States. This report presents the results of an analysis that focuses on two questions: (1) How are prices for competitive generation services likely to differ from regulated prices if competitive prices are based on marginal costs rather than regulated open-quotes cost-of-serviceclose quotes pricing? (2) What impacts will the competitive pricing of generation services (based on marginal costs) have on electricity consumption patterns, production costs, and the financial integrity patterns, production costs, and the financial integrity of electricity suppliers? This study is not intended to be a cost-benefit analysis of wholesale or retail competition, nor does this report include an analysis of the macroeconomic impacts of competitive electricity prices

Status of French electricity and natural gas retail markets. Report 2015-2016 Control. Energy retail markets: how does competition progress?

International Nuclear Information System (INIS)

2017-01-01

This publication aims at making data and indicators available to provide a view on recent evolutions of electric power and natural gas retail markets in France. After a presentation of some key figures produced by a survey on the knowledge of French people about market opening, this report first addresses the electric power market. It proposes an assessment of the electricity market opening by the end of December 2015: number of actors, number of large and non residential sites submitted to regulated prices, development of alternate providers, control of EDF commitments regarding long term contracts, assessment of competition intensity, follow-up of key processes and power cuts for non-payment. The report also proposes an analysis of the status of the power market on the territory of the main local distribution companies, and an analysis of electric power offers proposed to consumers (regulated prices, retail prices). The second part of the report addresses the same issues, but regarding the gas retail market

Did residential electricity rates fall after retail competition? A dynamic panel analysis

International Nuclear Information System (INIS)

Swadley, Adam; Yücel, Mine

2011-01-01

A key selling point for the restructuring of electricity markets was the promise of lower prices. There is not much consensus in earlier studies on the effects of electricity deregulation in the U.S., particularly for residential customers. Part of the reason for not finding a consistent link with deregulation and lower prices was that the removal of transitional price caps led to higher prices. In addition, the timing of the removal of price caps coincided with rising fuel prices, which were passed on to consumers in a competitive market. Using a dynamic panel model, we analyze the effect of participation rates, fuel costs, market size, a rate cap and switch to competition for 16 states and the District of Columbia. We find that an increase in participation rates, price controls, a larger market, and high shares of hydro in electricity generation lower retail prices, while increases in natural gas and coal prices increase rates. We also find that retail competition makes the market more efficient by lowering the markup of retail prices over wholesale costs. The effects of a competitive retail electricity market are mixed across states, but generally appear to lower prices in states with high participation rates. - Highlights: ► We analyze the effects of retail competition in electricity markets on residential retail prices. ► Analysis carried out using a dynamic panel model; monthly data for 17 U.S. states. ► More customer participation and larger market lead to lower prices. ► Higher fuel costs increase retail prices, but with a lag. ► Retail competition leads to a more efficient electricity market.

Capacity investment and competition in decentralized electricity markets

Energy Technology Data Exchange (ETDEWEB)

Fehr, Nils-Henrik von der; Harbord, David Cameron

1997-11-01

With particular reference to the recently deregulated and market-based electricity industries in Norway, the UK and elsewhere the report analyses oligopoly entry and capacity investment decisions as a non-cooperative game in a decentralized electricity market. A two-stage game is considered, with multiple capacity types and uncertain demand, in which capacity decisions are made prior to spot-market, or price competition. Equilibrium outcomes for different pricing mechanisms or regulatory regimes are analysed. The following questions are dealt with in particular: Will industry capacity be sufficient to ensure adequate supply security? Does imperfect competition in the spot-market lead to an inefficient mix of base-load and peak-load technologies? How do different regulatory policies affect the market outcomes? 24 refs., 2 figs., 1 tab.

Grid parity. Holy Grail or hype? Photovoltaic solar electricity on its way to competitiveness

International Nuclear Information System (INIS)

Sinke, W.C.

2009-05-01

Solar energy has a huge global and European potential for sustainable generation of electricity, heat and fuels. Photovoltaic solar energy conversion (PV) and concentrating solar power (CSP) are the two options for electricity generation. In the longer term they may also be used to generate sustainable fuel, especially hydrogen, if that would turn out to be useful in the total energy mix. Because of the different nature of the PV and CSP conversion processes and the related distinctive features, they can be considered largely complementary Clearly, the combination of the two absolutely makes a winning team and may form (or even has to form) the basis of our future sustainable energy system. Grid parity is a rather simplified indicator of the competitiveness of PV. It is nevertheless very useful since it assumes the viewpoint of a potential investor in a PV system and has thus helped to define potential markets. Moreover the concept does roughly illustrate how long it takes PV to reach competitiveness in different segments of the electricity market. It may not be the Holy Grail but it is certainly no hype either. When used with care it is one key to the success of PV.

Japan's electric power industry: responding to the challenges of the 3Es

International Nuclear Information System (INIS)

Park, J.

1999-01-01

With the rapid push toward deregulation in the power markets of North America, the European Union, and emerging economies, the business environment of the global power market has been dramatically altered in recent years. Profit margins, strategic overseas investments, and shareholder equity have replaced stability and predictability as the new business paradigm in the international electric power industry. Although Japan's electric power industry has not undergone the same degree of market liberalization experienced by its counterparts in North America and the European Union, this does not mean that Japan has escaped the challenges of the 3Es (economic, energy, and environmental changes), which have transformed the international electric power industry in recent years. With companies and consumers in Japan paying the highest price for electricity in the industrialized world, the high price of electricity represents an important business competitiveness issue for firms in energy - and export-intensive industries. This is particularly true now that Japan is desperately trying to end the economic turmoil caused by over regulation and a weak banking system. What remains to be seen is if Japan will be able to deregulate its electric power industry and at the same time, comply with the Kyoto climate change pledge of reducing the country's greenhouse emissions by 6% (compared to 1990 levels) in the next 10 years and continue to meet its energy security objective of expanding the use of nuclear power in the national energy supply. The complex interplay of domestic and international pressures on the national power market need to be explored in order to fully understand the policy challenges facing Japan's electric power industry. (author)

Electricity pricing and load dispatching in deregulated electricity market

International Nuclear Information System (INIS)

Geerli; Niioka, S.; Yokoyama, R.

2003-01-01

A rapid move to a market-based electric power industry will significantly alter the structure of electricity pricing and system operation. In this paper, we consider a game of negotiation in the electricity market, involving electric utilities, independent power producers (IPPs) and large-scale customers. We analyze the two-level game strategies for the negotiation process between utilities, IPPs and customers. These have been previously recognized as a way to come up with a rational decision for competitive markets, in which players intend to maximize their own profits. The derived operation rules based on competition can be viewed as an extension of the conventional equal incremental cost method for the deregulated power system. The proposed approach was applied to several systems to verify its effectiveness. (Author)

Why Do Electricity Policy and Competitive Markets Fail to Use Advanced PV Systems to Improve Distribution Power Quality?

Directory of Open Access Journals (Sweden)

Mark P. McHenry

2016-01-01

Full Text Available The increasing pressure for network operators to meet distribution network power quality standards with increasing peak loads, renewable energy targets, and advances in automated distributed power electronics and communications is forcing policy-makers to understand new means to distribute costs and benefits within electricity markets. Discussions surrounding how distributed generation (DG exhibits active voltage regulation and power factor/reactive power control and other power quality capabilities are complicated by uncertainties of baseline local distribution network power quality and to whom and how costs and benefits of improved electricity infrastructure will be allocated. DG providing ancillary services that dynamically respond to the network characteristics could lead to major network improvements. With proper market structures renewable energy systems could greatly improve power quality on distribution systems with nearly no additional cost to the grid operators. Renewable DG does have variability challenges, though this issue can be overcome with energy storage, forecasting, and advanced inverter functionality. This paper presents real data from a large-scale grid-connected PV array with large-scale storage and explores effective mitigation measures for PV system variability. We discuss useful inverter technical knowledge for policy-makers to mitigate ongoing inflation of electricity network tariff components by new DG interconnection requirements or electricity markets which value power quality and control.

Electricity prices in a competitive environment: Marginal cost pricing of generation services and financial status of electric utilities. A preliminary analysis through 2015

Energy Technology Data Exchange (ETDEWEB)

NONE

1997-08-01

The emergence of competitive markets for electricity generation services is changing the way that electricity is and will be priced in the United States. This report presents the results of an analysis that focuses on two questions: (1) How are prices for competitive generation services likely to differ from regulated prices if competitive prices are based on marginal costs rather than regulated {open_quotes}cost-of-service{close_quotes} pricing? (2) What impacts will the competitive pricing of generation services (based on marginal costs) have on electricity consumption patterns, production costs, and the financial integrity patterns, production costs, and the financial integrity of electricity suppliers? This study is not intended to be a cost-benefit analysis of wholesale or retail competition, nor does this report include an analysis of the macroeconomic impacts of competitive electricity prices.

Shipboard electrical power systems

CERN Document Server

Patel, Mukund R

2011-01-01

Shipboard Electrical Power Systems addresses new developments in this growing field. Focused on the trend toward electrification to power commercial shipping, naval, and passenger vessels, this book helps new or experienced engineers master cutting-edge methods for power system design, control, protection, and economic use of power. Provides Basic Transferable Skills for Managing Electrical Power on Ships or on LandThis groundbreaking book is the first volume of its kind to illustrate optimization of all aspects of shipboard electrical power systems. Applying author Mukund Patel's rare combina

Designing competitive electricity markets

International Nuclear Information System (INIS)

Chao, H.P.; Huntington, H.

1998-01-01

This volume of papers, originally presented at Stanford in March 1997 in a conference sponsored by the Electric Power Research Institute, examines several questions about the restructuring and deregulation of electricity markets. Its stated goal is to present guiding principles for evaluating proposals to restructure the US electric power industry. While a collection of essays is perhaps not the best place to lay out guiding principles, the volume does contain a great deal of learning about restructuring. The first essay is a reprint of Paul Joskow's excellent article in the ''Journal of Economic Perspectives''. An essay by William Hogan on the debate between zonal and locational pricing is next. Paul Kleindorfer lists the various governance schemes which other countries that have restructured have used to govern system operation, access to the market for power, and transmission ownership and pricing. One difficulty with the book, as well as the debate in the US, is that it fails to draw adequately upon the international experience. Shmuel Oren lays out the potential areas over which an ISO could have authority. The chapter by Stephen Rassenti and Vernon Smith that bilateral trading should never be allowed, implying that a mandatory pool should be established. A reduction in regulation may increase the incentives for technological innovation. Martin Baughman suggests a number of ways by which costs of transmitting and storing electricity may be reduced. Robert Wilson returns to the volume with a chapter on institutional design. To end the volume, Hung-Po Chao and Stephen Peck present an extension of their earlier work in the ''Journal of Regulatory Economics'' showing how markets for transmission rights would work in a transmission grid of three points

Essays on competition in electricity markets

Science.gov (United States)

Bustos Salvagno, Ricardo Javier

The first chapter shows how technology decisions affect entry in commodity markets with oligopolistic competition, like the electricity market. I demonstrate an entry deterrence effect that works through cost uncertainty. Technology's cost uncertainty affects spot market expected profits through forward market trades. Therefore, incentives to engage in forward trading shape firms' decisions on production technologies. I show that high-cost but low-risk technologies are adopted by risk-averse incumbents to deter entry. Strategic technology adoption can end in a equilibrium where high-cost technologies prevail over low-cost but riskier ones. In the case of incumbents who are less risk-averse than entrants, entry deterrence is achieved by choosing riskier technologies. The main results do not depend on who chooses their technology first. Chapter two examines the Chilean experience on auctions for long-term supply contracts in electricity markets from 2006 to 2011. Using a divisible-good auction model, I provide a theoretical framework that explains bidding behavior in terms of expected spot prices and contracting positions. The model is extended to include potential strategic behavior on contracting decisions. Empirical estimations confirm the main determinants of bidding behavior and show heterogeneity in the marginal cost of over-contracting depending on size and incumbency. Chapter three analyzes the lag in capacity expansion in the Chilean electricity market from 2000 to 2004. Regarded as a result of regulatory uncertainty, the role of delays in the construction of a large hydro-power plant has been overlooked by the literature. We argue that those delays postponed projected investment and gave small windows of opportunity that only incumbents could take advantage of. We are able to retrace the history of investments through real-time information from the regulator's reports and a simple model enables us to explain the effect of those delays on suggested and under

Measurement of power and energy consumption of a competition-mobile-robot

Directory of Open Access Journals (Sweden)

Tsung Tsing-Tshih

2017-01-01

Full Text Available Power and energy consumption are the two most important factors for successful operation; they also play important roles in performance identification. The measurement of power and energy consumption is a common test in the development process of a competition mobile robot. If the power of a competition mobile robot is not sufficient, the running time in the competition will be too long and winning the competition will not be possible. Thus, the power and energy consumption are basic and important measurement parameters for a competition mobile robot. In this paper, five types of hand-made competition mobile robots are successfully developed and their performances are measured. From the measurements, their powers and energy consumptions are evaluated and analyzed, respectively. The test results show large differences in the powers and energy consumptions of the five models, even though the same motors were used. The design and construction of the competition mobile robot are the key parameters that cause these huge differences. It is possible to develop the measurement techniques for power and energy consumption, quickly and precisely, to determine how to modify a competition mobile robot rapidly and efficiently to a condition optimal for a mobile robot competition.

Real-time versus day-ahead market power in a hydro-based electricity market

OpenAIRE

Tangerås, Thomas P.; Mauritzen, Johannes

2014-01-01

We analyse in a theoretical framework the link between real-time and day-ahead market performance in a hydro-based and imperfectly competitive wholesale electricity market. Theoretical predictions of the model are tested on data from the Nordic power exchange, Nord Pool Spot (NPS).We reject the hypothesis that prices at NPS were at their competitive levels throughout the period under examination. The empirical approach uses equilibrium prices and quantities and does not rely on bid data nor o...

Electric power industry in China

Energy Technology Data Exchange (ETDEWEB)

Zisheng Jiang [Ministry of Electric Power, Beijing (China). Bureau of Electric Power Machinery

1995-07-01

This document presents the status of the electric power in China, highlighting the following aspects: recent achievement, electricity increased sharing in the total energy consumption, technical economic indexes, nuclear power, renewable energy sources, rural electrification, transmission and power network, transmission lines and substations, present status and development trends for power network, regulation of power system dispatching, power system communication. The document also presents the future developing plan, approaching the outlook and strategy, development targets of the electric power industry and the administrative system reforming of the electric power industry.

Some models for electric power price clearing in liberalized market area

International Nuclear Information System (INIS)

Chogelja, Goran; Pavlov, Risto

2001-01-01

This paper presents some of the basic models for electrical energy price clearing in liberalized market area and competition on level of consumption and level of production. As an example the Amsterdam power exchange APX (spot market) is given and some of another types of markets and methodology for pricing are presented. In detal 'clearing pricing mechanism in day athead market' from the Amsterdam power exchange is presented as well as the methodology for market balancing and financial clearing. (Original)

Is nuclear power competitive