WorldWideScience

Sample records for electricity market equilibrium

  1. 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.

  2. Game-theoretic equilibrium analysis applications to deregulated electricity markets

    Science.gov (United States)

    Joung, Manho

    This dissertation examines game-theoretic equilibrium analysis applications to deregulated electricity markets. In particular, three specific applications are discussed: analyzing the competitive effects of ownership of financial transmission rights, developing a dynamic game model considering the ramp rate constraints of generators, and analyzing strategic behavior in electricity capacity markets. In the financial transmission right application, an investigation is made of how generators' ownership of financial transmission rights may influence the effects of the transmission lines on competition. In the second application, the ramp rate constraints of generators are explicitly modeled using a dynamic game framework, and the equilibrium is characterized as the Markov perfect equilibrium. Finally, the strategic behavior of market participants in electricity capacity markets is analyzed and it is shown that the market participants may exaggerate their available capacity in a Nash equilibrium. It is also shown that the more conservative the independent system operator's capacity procurement, the higher the risk of exaggerated capacity offers.

  3. Cap-and-Trade Modeling and Analysis: Congested Electricity Market Equilibrium

    Science.gov (United States)

    Limpaitoon, Tanachai

    This dissertation presents an equilibrium framework for analyzing the impact of cap-and-trade regulation on transmission-constrained electricity market. The cap-and-trade regulation of greenhouse gas emissions has gained momentum in the past decade. The impact of the regulation and its efficacy in the electric power industry depend on interactions of demand elasticity, transmission network, market structure, and strategic behavior of firms. I develop an equilibrium model of an oligopoly electricity market in conjunction with a market for tradable emissions permits to study the implications of such interactions. My goal is to identify inefficiencies that may arise from policy design elements and to avoid any unintended adverse consequences on the electric power sector. I demonstrate this modeling framework with three case studies examining the impact of carbon cap-and-trade regulation. In the first case study, I study equilibrium results under various scenarios of resource ownership and emission targets using a 24-bus IEEE electric transmission system. The second and third case studies apply the equilibrium model to a realistic electricity market, Western Electricity Coordinating Council (WECC) 225-bus system with a detailed representation of the California market. In the first and second case studies, I examine oligopoly in electricity with perfect competition in the permit market. I find that under a stringent emission cap and a high degree of concentration of non-polluting firms, the electricity market is subject to potential abuses of market power. Also, market power can occur in the procurement of non-polluting energy through the permit market when non-polluting resources are geographically concentrated in a transmission-constrained market. In the third case study, I relax the competitive market structure assumption of the permit market by allowing oligopolistic competition in the market through a conjectural variation approach. A short-term equilibrium

  4. Existence and uniqueness of consistent conjectural variation equilibrium in electricity markets

    International Nuclear Information System (INIS)

    Liu, Youfei; Cai, Bin; Ni, Y.X.; Wu, Felix F.

    2007-01-01

    The game-theory based methods are widely applied to analyze the market equilibrium and to study the strategic behavior in the oligopolistic electricity markets. Recently, the conjecture variation approach, one of well-studied methods in game theory, is reported to model the strategic behavior in deregulated electricity markets. Unfortunately, the conjecture variation models have been criticized for the drawback of logical inconsistence and possibility of abundant equilibria. Aiming for this, this paper investigates the existence and uniqueness of consistent conjectural variation equilibrium in electricity markets. With several good characteristics of the electricity market and with an infinite horizon optimization model, it is shown that the consistent conjecture variation will satisfy a set of coupled nonlinear equations and there will be only one equilibrium. This result can provide the fundamentals for further applications of the conjecture variation approach. (author)

  5. Electricity market equilibrium model with resource constraint and transmission congestion

    Energy Technology Data Exchange (ETDEWEB)

    Gao, F. [ABB, Inc., Santa Clara, CA 95050 (United States); Sheble, G.B. [Portland State University, Portland, OR 97207 (United States)

    2010-01-15

    Electricity market equilibrium model not only helps Independent System Operator/Regulator analyze market performance and market power, but also provides Market Participants the ability to build optimal bidding strategies based on Microeconomics analysis. Supply Function Equilibrium (SFE) is attractive compared to traditional models and many efforts have been made on it before. However, most past research focused on a single-period, single-market model and did not address the fact that GENCOs hold a portfolio of assets in both electricity and fuel markets. This paper first identifies a proper SFE model, which can be applied to a multiple-period situation. Then the paper develops the equilibrium condition using discrete time optimal control considering fuel resource constraints. Finally, the paper discusses the issues of multiple equilibria caused by transmission network and shows that a transmission constrained equilibrium may exist, however the shadow price may not be zero. Additionally, an advantage from the proposed model for merchant transmission planning is discussed. (author)

  6. Electricity market equilibrium model with resource constraint and transmission congestion

    International Nuclear Information System (INIS)

    Gao, F.; Sheble, G.B.

    2010-01-01

    Electricity market equilibrium model not only helps Independent System Operator/Regulator analyze market performance and market power, but also provides Market Participants the ability to build optimal bidding strategies based on Microeconomics analysis. Supply Function Equilibrium (SFE) is attractive compared to traditional models and many efforts have been made on it before. However, most past research focused on a single-period, single-market model and did not address the fact that GENCOs hold a portfolio of assets in both electricity and fuel markets. This paper first identifies a proper SFE model, which can be applied to a multiple-period situation. Then the paper develops the equilibrium condition using discrete time optimal control considering fuel resource constraints. Finally, the paper discusses the issues of multiple equilibria caused by transmission network and shows that a transmission constrained equilibrium may exist, however the shadow price may not be zero. Additionally, an advantage from the proposed model for merchant transmission planning is discussed. (author)

  7. Effects of interruptible load program on equilibrium outcomes of electricity markets with wind power

    Energy Technology Data Exchange (ETDEWEB)

    An, Xuena; Zhang, Shaohua; Li, Xue [Shanghai Univ. (China). Key Lab. of Power Station Automation Technology

    2013-07-01

    High wind power penetration presents a lot of challenges to the flexibility and reliability of power system operation. In this environment, various demand response (DR) programs have got much attention. As an effective measure of demand response programs, interruptible load (IL) programs have been widely used in electricity markets. This paper addresses the problem of impacts of the IL programs on the equilibrium outcomes of electricity wholesale markets with wind power. A Cournot equilibrium model of wholesale markets with wind power is presented, in which IL programs is included by a market demand model. The introduction of the IL programs leads to a non-smooth equilibrium problem. To solve this equilibrium problem, a novel solution method is proposed. Numerical examples show that IL programs can lower market price and its volatility significantly, facilitate the integration of wind power.

  8. 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.

  9. Nash equilibrium strategy in the deregulated power industry and comparing its lost welfare with Iran wholesale electricity market

    Science.gov (United States)

    Mousavi, Seyed Hosein; Nazemi, Ali; Hafezalkotob, Ashkan

    2016-09-01

    With the increasing use of different types of auctions in market designing, modeling of participants' behaviors to evaluate the market structure is one of the main discussions in the studies related to the deregulated power industries. In this article, we apply an approach of the optimal bidding behavior to the Iran wholesale electricity market as a restructured electric power industry and model how the participants of the market bid in the spot electricity market. The problem is formulated analytically using the Nash equilibrium concept composed of large numbers of players having discrete and very large strategy spaces. Then, we compute and draw supply curve of the competitive market in which all generators' proposed prices are equal to their marginal costs and supply curve of the real market in which the pricing mechanism is pay-as-bid. We finally calculate the lost welfare or inefficiency of the Nash equilibrium and the real market by comparing their supply curves with the competitive curve. We examine 3 cases on November 24 (2 cases) and July 24 (1 case), 2012. It is observed that in the Nash equilibrium on November 24 and demand of 23,487 MW, there are 212 allowed plants for the first case (plants are allowed to choose any quantity of generation except one of them that should be equal to maximum Power) and the economic efficiency or social welfare of Nash equilibrium is 2.77 times as much as the real market. In addition, there are 184 allowed plants for the second case (plants should offer their maximum power with different prices) and the efficiency or social welfare of Nash equilibrium is 3.6 times as much as the real market. On July 24 and demand of 42,421 MW, all 370 plants should generate maximum energy due to the high electricity demand that the economic efficiency or social welfare of the Nash equilibrium is about 2 times as much as the real market.

  10. Multi-period equilibrium/near-equilibrium in electricity markets based on locational marginal prices

    Science.gov (United States)

    Garcia Bertrand, Raquel

    In this dissertation we propose an equilibrium procedure that coordinates the point of view of every market agent resulting in an equilibrium that simultaneously maximizes the independent objective of every market agent and satisfies network constraints. Therefore, the activities of the generating companies, consumers and an independent system operator are modeled: (1) The generating companies seek to maximize profits by specifying hourly step functions of productions and minimum selling prices, and bounds on productions. (2) The goals of the consumers are to maximize their economic utilities by specifying hourly step functions of demands and maximum buying prices, and bounds on demands. (3) The independent system operator then clears the market taking into account consistency conditions as well as capacity and line losses so as to achieve maximum social welfare. Then, we approach this equilibrium problem using complementarity theory in order to have the capability of imposing constraints on dual variables, i.e., on prices, such as minimum profit conditions for the generating units or maximum cost conditions for the consumers. In this way, given the form of the individual optimization problems, the Karush-Kuhn-Tucker conditions for the generating companies, the consumers and the independent system operator are both necessary and sufficient. The simultaneous solution to all these conditions constitutes a mixed linear complementarity problem. We include minimum profit constraints imposed by the units in the market equilibrium model. These constraints are added as additional constraints to the equivalent quadratic programming problem of the mixed linear complementarity problem previously described. For the sake of clarity, the proposed equilibrium or near-equilibrium is first developed for the particular case considering only one time period. Afterwards, we consider an equilibrium or near-equilibrium applied to a multi-period framework. This model embodies binary

  11. An analysis of capacity and price trajectories for the Ontario electricity market using dynamic Nash equilibrium under uncertainty

    International Nuclear Information System (INIS)

    Genc, T.S.; Suvrajeet Sen

    2008-01-01

    This paper studies investments in the Ontario Electricity Market which is currently being restructured. Our methodology is based on the concept of S-adapted open-loop Nash equilibrium. We examine the evolution of capital investments and pricing behavior of suppliers as uncertain electricity demand evolves over time (in Ontario). This study is particularly interesting since we compare the implications of two policies: (i) the current setting in which Ontario Power Generation (OPG) retains its generation units; (ii) the policy (set up in 2003) that required the divestiture of the largest supplier, OPG, and aimed to increase the number of independent suppliers in Ontario. We mainly focus on the independent generators like Bruce Nuclear. We use the tools of Stochastic Programming to compute the S-adapted open-loop Nash equilibrium market outcomes. We find that in the three-player market total capacity installation and market prices are higher than the ones in the five-player market. That is higher capacity may not necessarily alleviate exercise of market power. We also confirm the prediction by the National Energy Board that in a market with five major players, OPG's market share may reduce to a percentage between 35% and 40%. (author)

  12. A new algorithm to compute conjectured supply function equilibrium in electricity markets

    International Nuclear Information System (INIS)

    Diaz, Cristian A.; Villar, Jose; Campos, Fco Alberto; Rodriguez, M. Angel

    2011-01-01

    Several types of market equilibria approaches, such as Cournot, Conjectural Variation (CVE), Supply Function (SFE) or Conjectured Supply Function (CSFE) have been used to model electricity markets for the medium and long term. Among them, CSFE has been proposed as a generalization of the classic Cournot. It computes the equilibrium considering the reaction of the competitors against changes in their strategy, combining several characteristics of both CVE and SFE. Unlike linear SFE approaches, strategies are linearized only at the equilibrium point, using their first-order Taylor approximation. But to solve CSFE, the slope or the intercept of the linear approximations must be given, which has been proved to be very restrictive. This paper proposes a new algorithm to compute CSFE. Unlike previous approaches, the main contribution is that the competitors' strategies for each generator are initially unknown (both slope and intercept) and endogenously computed by this new iterative algorithm. To show the applicability of the proposed approach, it has been applied to several case examples where its qualitative behavior has been analyzed in detail. (author)

  13. Nash equilibrium in a pay-as-bid electricity market: Part 1- existence and characterization

    Czech Academy of Sciences Publication Activity Database

    Aussel, D.; Bendotti, P.; Pištěk, Miroslav

    2017-01-01

    Roč. 66, č. 6 (2017), s. 1013-1025 ISSN 0233-1934 R&D Projects: GA ČR GA15-00735S Institutional support: RVO:67985556 Keywords : Electricity market * multi-leader- follower game * Nash equilibrium * best response Subject RIV: AH - Economics OBOR OECD: Economic Theory Impact factor: 0.943, year: 2016 http://library.utia.cas.cz/separaty/2016/MTR/pistek-0468195.pdf

  14. Strategic forward contracting in electricity markets: modelling and analysis by equilibrium method

    International Nuclear Information System (INIS)

    Chung, T.S.; Zhang, S.H.; Wong, K.P.; Yu, C.W.; Chung, C.Y.

    2004-01-01

    Contractual arrangement plays an important role in mitigating market power in electricity markets. The issue of whether rational generators would voluntarily enter contract markets through a strategic incentive is examined, and the factors which could affect this strategic contracting behaviour. A two-stage game model is presented to formulate the competition of generators in bid-based pool spot markets and contract markets, as well as the interaction between these two markets. The affine supply function equilibrium (SFE) method is used to model competitive bidding for the spot market, while the contract market is modelled with the general conjectural variation method. The proposed methodology allows asymmetric, multiple strategic generators having capacity constraints and affine marginal costs with non-zero intercepts to be taken into account. It is shown that the presence of forward contract markets will complicate the solution to the affine SFE, and a new methodology is developed in this regard. Strategic contracting behaviours are analysed in the context of asymmetric, multiple strategic generators. A numerical example is used to verify theoretical results. It is shown that the observability of contract markets plays an important role in fostering generators' strategic contracting incentive, and that this contracting behaviour could also be affected by generators' cost parameters and demand elasticity. (author)

  15. Research on spot power market equilibrium model considering the electric power network characteristics

    International Nuclear Information System (INIS)

    Wang, Chengmin; Jiang, Chuanwen; Chen, Qiming

    2007-01-01

    Equilibrium is the optimum operational condition for the power market by economics rule. A realistic spot power market cannot achieve the equilibrium condition due to network losses and congestions. The impact of the network losses and congestion on spot power market is analyzed in this paper in order to establish a new equilibrium model considering the network loss and transmission constraints. The OPF problem formulated according to the new equilibrium model is solved by means of the equal price principle. A case study on the IEEE-30-bus system is provided in order to prove the effectiveness of the proposed approach. (author)

  16. 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

  17. Price-elastic demand in deregulated electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Siddiqui, Afzal S.

    2003-05-01

    The degree to which any deregulated market functions efficiently often depends on the ability of market agents to respond quickly to fluctuating conditions. Many restructured electricity markets, however, experience high prices caused by supply shortages and little demand-side response. We examine the implications for market operations when a risk-averse retailer's end-use consumers are allowed to perceive real-time variations in the electricity spot price. Using a market-equilibrium model, we find that price elasticity both increases the retailers revenue risk exposure and decreases the spot price. Since the latter induces the retailer to reduce forward electricity purchases, while the former has the opposite effect, the overall impact of price responsive demand on the relative magnitudes of its risk exposure and end-user price elasticity. Nevertheless, price elasticity decreases cumulative electricity consumption. By extending the analysis to allow for early settlement of demand, we find that forward stage end-user price responsiveness decreases the electricity forward price relative to the case with price-elastic demand only in real time. Moreover, we find that only if forward stage end-user demand is price elastic will the equilibrium electricity forward price be reduced.

  18. General Equilibrium Analysis of Electricity Market Liberalization in Singapore: A Comparative Study

    Directory of Open Access Journals (Sweden)

    Fenglong XIAO

    2011-12-01

    Full Text Available The liberalization in electricity market in Singapore has being undertaken for more than 15 years. This paper evaluates the influence of competition policies by computable general equilibrium (CGE model. Instead of the direct measurement of the impact of competition policy, the benefit of liberalization is reflected by the simulation of a hypothetical regulatory condition. Comparing to the regulatory scenario, simulation result implies the current liberalization raises GDP and exchange rate significantly, but also leaves the tradeoff between higher national income and lower consumer welfare to government. If such choice of economic policy is necessary for political demand, a formal legal framework is required to enforce the restoration of the economy from regulatory restrictions.

  19. Price-elastic demand in deregulated electricity markets

    OpenAIRE

    Siddiqui, Afzal S.

    2003-01-01

    The degree to which any deregulated market functions efficiently often depends on the ability of market agents to respond quickly to fluctuating conditions. Many restructured electricity markets, however, experience high prices caused by supply shortages and little demand-side response. We examine the implications for market operations when a risk-averse retailer's end-use consumers are allowed to perceive real-time variations in the electricity spot price. Using a market-equilibrium mo...

  20. An auction game model for pool-based electricity markets

    International Nuclear Information System (INIS)

    Gan, Deqiang; Wang, Jianquan; Bourcier, Donald V.

    2005-01-01

    A single-period auction game model for analyzing strategic behavior in pool-based electricity markets is introduced in the paper. We study the Nash equilibrium in a pure strategy sense of such games. First an equilibrium existence lemma is proved. Equilibrium characterization under tight capacity constraints is provided. Then it is demonstrated that an auction game does not possess a pure strategy Nash equilibrium under a wide range of market conditions. The paper provides a characterization of equilibrium under weak capacity constraints. We apply the introduced results to analyze market power indices presented in our earlier work and in related reports. Applications to actual market analysis, as well as limitations of the introduced model are provided. (author)

  1. Models of supply function equilibrium with applications to the electricity industry

    Science.gov (United States)

    Aromi, J. Daniel

    Electricity market design requires tools that result in a better understanding of incentives of generators and consumers. Chapter 1 and 2 provide tools and applications of these tools to analyze incentive problems in electricity markets. In chapter 1, models of supply function equilibrium (SFE) with asymmetric bidders are studied. I prove the existence and uniqueness of equilibrium in an asymmetric SFE model. In addition, I propose a simple algorithm to calculate numerically the unique equilibrium. As an application, a model of investment decisions is considered that uses the asymmetric SFE as an input. In this model, firms can invest in different technologies, each characterized by distinct variable and fixed costs. In chapter 2, option contracts are introduced to a supply function equilibrium (SFE) model. The uniqueness of the equilibrium in the spot market is established. Comparative statics results on the effect of option contracts on the equilibrium price are presented. A multi-stage game where option contracts are traded before the spot market stage is considered. When contracts are optimally procured by a central authority, the selected profile of option contracts is such that the spot market price equals marginal cost for any load level resulting in a significant reduction in cost. If load serving entities (LSEs) are price takers, in equilibrium, there is no trade of option contracts. Even when LSEs have market power, the central authority's solution cannot be implemented in equilibrium. In chapter 3, we consider a game in which a buyer must repeatedly procure an input from a set of firms. In our model, the buyer is able to sign long term contracts that establish the likelihood with which the next period contract is awarded to an entrant or the incumbent. We find that the buyer finds it optimal to favor the incumbent, this generates more intense competition between suppliers. In a two period model we are able to completely characterize the optimal mechanism.

  2. Production inefficiency of electricity markets with hydro generation

    International Nuclear Information System (INIS)

    Philpott, Andy; Guan, Ziming; Khazaei, Javad; Zakeri, Golbon

    2010-01-01

    Electricity market designs that decentralize decision making for participants can lead to inefficiencies in the presence of nonconvexity or missing markets. This has been shown in the case of unit-commitment problems that can make a decentralized market equilibrium less efficient than a centrally planned solution. Less attention has been focused on systems with large amounts of hydro-electric generation. We describe the results of an empirical study of the New Zealand wholesale electricity market that attempts to quantify production efficiency losses by comparing market outcomes with a counterfactual central plan. (author)

  3. A Bidding Methodology by Nash Equilibrium for Finite Generators Participating in Imperfect Electricity Markets

    Science.gov (United States)

    Satyaramesh, P. V.

    2014-01-01

    This paper presents an application of finite n-person non-cooperative game theory for analyzing bidding strategies of generators in a deregulated energy marketplace with Pool Bilateral contracts so as to maximize their net profits. A new methodology to build bidding methodology for generators participating in oligopoly electricity market has been proposed in this paper. It is assumed that each generator bids a supply function. This methodology finds out the coefficients in the supply function of generators in order to maximize benefits in an environment of competing rival bidders. A natural choice for developing strategies is Nash Equilibrium (NE) model incorporating mixed strategies, for solving the bidding problem of electrical market. Associated optimal profits are evaluated for a combination of set of pure strategies of bidding of generators, and payoff matrix has been constructed. The optimal payoff is calculated by using NE. An attempt has also been made to minimize the gap between the optimal payoff and the payoff obtained by a possible mixed strategies combination. The algorithm is coded in MATLAB. A numerical example is used to illustrate the essential features of the approach and the results are proved to be the optimal values.

  4. Analyzing interaction of electricity markets and environmental policies using equilibrium models

    Science.gov (United States)

    Chen, Yihsu

    Around the world, the electric sector is evolving from a system of regulated vertically-integrated monopolies to a complex system of competing generation companies, unregulated traders, and regulated transmission and distribution. One emerging challenge faced by environmental policymakers and electricity industry is the interaction between electricity markets and environmental policies. The objective of this dissertation is to examine these interactions using large-scale computational models of electricity markets based on noncooperative game theory. In particular, this dissertation is comprised of four essays. The first essay studies the interaction of the United States Environmental Protection Agency NOx Budget Program and the mid-Atlantic electricity market. This research quantifies emissions, economic inefficiencies, price distortions, and overall social welfare under various market assumptions using engineering-economic models. The models calculate equilibria for imperfectly competitive markets---Cournot oligopoly---considering the actual landscape of power plants and transmission lines, and including the possibility of market power in the NOx allowances market. The second essay extends the results from first essay and models imperfectly competitive markets using a Stackelberg or leader-follower formulation. A leader in the power and NO x markets is assumed to have perfect foresight of its rivals' responses. The rivals' best response functions are explicitly embedded in the leader's constraints. The solutions quantify the extent to which a leader in the markets can extract economic rents on the expense of its followers. The third essay investigates the effect of implementing the European Union (EU) CO2 Emissions Trading Scheme (ETS) on wholesale power prices in the Western European electricity market. This research uses theoretical and computational modeling approaches to quantify the degree to which CO2 costs were passed on to power prices, and quantifies the

  5. Equilibrium prices supported by dual price functions in markets with non-convexities

    International Nuclear Information System (INIS)

    Bjoerndal, Mette; Joernsten, Kurt

    2004-06-01

    The issue of finding market clearing prices in markets with non-convexities has had a renewed interest due to the deregulation of the electricity sector. In the day-ahead electricity market, equilibrium prices are calculated based on bids from generators and consumers. In most of the existing markets, several generation technologies are present, some of which have considerable non-convexities, such as capacity limitations and large start up costs. In this paper we present equilibrium prices composed of a commodity price and an uplift charge. The prices are based on the generation of a separating valid inequality that supports the optimal resource allocation. In the case when the sub-problem generated as the integer variables are held fixed to their optimal values possess the integrality property, the generated prices are also supported by non-linear price-functions that are the basis for integer programming duality. (Author)

  6. A bargaining model of regulated markets' integration with an application to electricity supply market

    International Nuclear Information System (INIS)

    Wei Jingyuan; Smeers, Y.; Canon, E.

    1995-01-01

    An integrated market organized by regulated electric utilities is modelled. It is assumed that, given a price vector for the exchange of electricity between each pair of neighboring utilities, utilities independently maximize their own domestic social welfare subject to the zero profit constraint. An equilibrium price vector for exchanges among utilities is defined as the one which clears the exchanges for all pair of business partners. A single piecewise linear model is formulated for computing market equilibria. The model is used to simulate the electricity supply market organized by 11 western European countries

  7. Government procurement of peak capacity in the New Zealand electricity market

    International Nuclear Information System (INIS)

    Poletti, Steve

    2009-01-01

    This paper analyzes the impact of government procurement of reserve electricity generation capacity on the long-run equilibrium in the electricity market. The approach here is to model the electricity market in a context where the supply companies have market power. The model is then used to analyze the impact of government direct supply of peak capacity on the market. We find that the firms build less peak-generation capacity when the government procures peak generating capacity. The long-run equilibrium with N firms and government capacity of K G results in an increase of total peak generation capacity of K G /(N+1) compared to the long-run equilibrium with no government capacity. Supply disruptions of baseline capacity during the peak time period are also considered. It is found that peak prices do not go up any further with (anticipated) supply disruptions. Instead the entire cost of the extra peakers is borne by customers on traditional meters and off-peak customers who face real-time pricing. (author)

  8. Effects of Risk Aversion on Market Outcomes: A Stochastic Two-Stage Equilibrium Model

    DEFF Research Database (Denmark)

    Kazempour, Jalal; Pinson, Pierre

    2016-01-01

    This paper evaluates how different risk preferences of electricity producers alter the market-clearing outcomes. Toward this goal, we propose a stochastic equilibrium model for electricity markets with two settlements, i.e., day-ahead and balancing, in which a number of conventional and stochastic...... by its optimality conditions, resulting in a mixed complementarity problem. Numerical results from a case study based on the IEEE one-area reliability test system are derived and discussed....

  9. Long-term Nash equilibria in electricity markets

    International Nuclear Information System (INIS)

    Pozo, David; Contreras, Javier; Caballero, Angel; de Andres, Antonio

    2011-01-01

    In competitive electricity markets, companies simultaneously offer their productions to obtain the maximum profits on a daily basis. In the long run, the strategies utilized by the electric companies lead to various long-term equilibria that can be analyzed with the appropriate tools. We present a methodology to find plausible long-term Nash equilibria in pool-based electricity markets. The methodology is based on an iterative market Nash equilibrium model in which the companies can decide upon their offer strategies. An exponential smoothing of the bids submitted by the companies is applied to facilitate the convergence of the iterative procedure. In each iteration of the model the companies face residual demand curves that are accurately modeled by Hermite interpolating polynomials. We introduce the concept of meta-game equilibrium strategies to allow companies to have a range of offer strategies where several pure and mixed meta-game Nash equilibria are possible. With our model it is also possible to model uncertainty or to generate price scenarios for financial models that assess the value of a generating unit by real options analysis. The application of the proposed methodology is illustrated with several realistic case studies. (author)

  10. Simulation of producers behaviour in the electricity market by evolutionary games

    Energy Technology Data Exchange (ETDEWEB)

    Menniti, Daniele; Pinnarelli, Anna; Sorrentino, Nicola [Department of Electronic, Computer and System Science, University of Calabria (Italy)

    2008-03-15

    Simulation of the electricity market participant's behaviour is important for producers and consumers to determine their bidding strategies and for regulating the market rules. In literature, for this aim a lot of papers suggest to use the well-known theory of non-cooperative games and the concept of Nash equilibrium. Unfortunately they cannot be applied in an easy way when a multi-players game has to be considered to simulate the operation of the electricity market. In this paper, the authors suggest to use the new theory of evolutionary games and the concept of near Nash equilibrium to simulate the electricity market in the presence of more than two producers. In particular, an opportune genetic algorithm has been developed; from the results reported in the paper, it is clear that this algorithm can be usefully utilised. (author)

  11. Simulation of producers behaviour in the electricity market by evolutionary games

    International Nuclear Information System (INIS)

    Menniti, Daniele; Pinnarelli, Anna; Sorrentino, Nicola

    2008-01-01

    Simulation of the electricity market participant's behaviour is important for producers and consumers to determine their bidding strategies and for regulating the market rules. In literature, for this aim a lot of papers suggest to use the well-known theory of non-cooperative games and the concept of Nash equilibrium. Unfortunately they cannot be applied in an easy way when a multi-players game has to be considered to simulate the operation of the electricity market. In this paper, the authors suggest to use the new theory of evolutionary games and the concept of near Nash equilibrium to simulate the electricity market in the presence of more than two producers. In particular, an opportune genetic algorithm has been developed; from the results reported in the paper, it is clear that this algorithm can be usefully utilised. (author)

  12. Ramsey prices in the Italian electricity market

    International Nuclear Information System (INIS)

    Bigerna, Simona; Bollino, Carlo Andrea

    2016-01-01

    In this paper, we derive optimal zonal prices in the Italian day-ahead electricity market using estimation of a complete system of hourly demand in 2010–2011. In Italy, the hourly equilibrium price for all buyers is computed as a uniform average of supply zonal prices, resulting from market splitting due to line congestion. We model ex-ante individual bids expressed by heterogeneous consumers, which are distinguished by geographical zones. Using empirical estimations, we compute demand elasticity values and new zonal prices, according to a Ramsey optimal scheme. This is a new approach in the wholesale electricity market literature, as previous studies have discussed the relative merit of zonal prices, considering only the issue of line congestion. Our results show that the optimal pricing scheme can improve welfare in the day-ahead Italian electricity market, with respect to both the existing uniform price scheme and the proposal to charge the existing supply zonal prices to the demand side. - Highlights: • We model and estimate the demand of heterogeneous buyers in the electricity market. • Transmission line congestion creates welfare distortions in the market. • We derive optimal Ramsey prices in the Italian day-ahead electricity market. • We compare optimal prices with historical ones showing how to improve welfare.

  13. Improving firm performance in out-of-equilibrium, deregulated markets using feedback simulation models

    International Nuclear Information System (INIS)

    Gary, S.; Larsen, E.R.

    2000-01-01

    Deregulation has reshaped the utility sector in many countries around the world. Organisations in these deregulated industries must adopt new polices which guide strategic decisions, in an uncertain and unfamiliar environment, that determine the short- and long-term fate of their companies. Traditional economic equilibrium models do not adequately address the issues facing these organisations in the shift towards deregulated market competition. Equilibrium assumptions break down in the out-of-equilibrium transition to competitive markets, and therefore different underpinning assumptions must be adopted in order to guide management in these periods. Simulation models incorporating information feedback through behavioural policies fill the void left by equilibrium models and support strategic policy analysis in out-of-equilibrium markets. As an example, we present a feedback simulation model developed to examine firm and industry level performance consequences of new generation capacity investment policies in the deregulated UK electricity sector. The model explicitly captures behavioural decision polices of boundedly rational managers and avoids equilibrium assumptions. Such models are essential to help managers evaluate the performance impact of various strategic policies in environments in which disequilibrum behaviour dominates. (Author)

  14. Stochastic–multiobjective market equilibrium analysis of a demand response program in energy market under uncertainty

    International Nuclear Information System (INIS)

    Hu, Ming-Che; Lu, Su-Ying; Chen, Yen-Haw

    2016-01-01

    Highlights: • Analyze the impact of a demand response program under uncertainty. • Stochastic Nash–Cournot competition model is formulated. • Case study of the Taiwanese electric power market is conducted. • Demand response decreases power price, generation, and emissions. • Demand uncertainty increases energy price and supply risk in the results. - Abstract: In the electricity market, demand response programs are designed to shift peak demand and enhance system reliability. A demand response program can reduce peak energy demand, power transmission congestion, or high energy-price conditions by changing consumption patterns. The purpose of this research is to analyze the impact of a demand response program in the energy market, under demand uncertainty. A stochastic–multiobjective Nash–Cournot competition model is formulated to simulate demand response in an uncertain energy market. Then, Karush–Kuhn–Tucker optimality conditions and a linear complementarity problem are derived for the stochastic Nash–Cournot model. Accordingly, the linear complementarity problem is solved and its stochastic market equilibrium solution is determined by using a general algebraic modeling system. Additionally, the case of the Taiwanese electric power market is taken up here, and the results show that a demand response program is capable of reducing peak energy consumption, energy price, and carbon dioxide emissions. The results show that demand response program decreases electricity price by 2–10%, total electricity generation by 0.5–2%, and carbon dioxide emissions by 0.5–2.5% in the Taiwanese power market. In the simulation, demand uncertainty leads to an 2–7% increase in energy price and supply risk in the market. Additionally, tradeoffs between cost and carbon dioxide emissions are presented.

  15. 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)

  16. Equilibrium with arbitrary market structure

    DEFF Research Database (Denmark)

    Grodal, Birgit; Vind, Karl

    2005-01-01

    . The complete market predicted by this theory is clearly unrealistic, and Radner [10] formulated and proved existence of equilibrium in a multiperiod model with incomplete markets. In this paper the Radner result is extended. Radner assumed a specific structure of markets, independence of preferences...

  17. 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.

  18. Dynamic Interaction between Cap & Trade and Electricity Markets

    Science.gov (United States)

    Jeev, Kumar

    Greenhouse Gases (GHG), such as Carbon-Dioxide (CO2), which is released in the atmosphere due to anthropogenic activities like power production, are now accepted as the main culprits for global warming. The Regional Greenhouse Gas Initiative (RGGI), an initiative of the North East and Mid-Atlantic States of the United States (US) for limiting the emission of GHG, has developed a regional cap-and-trade program for CO2 emissions for power plants. Existing cap-and-trade programs in US and Europe for Greenhouse Gases have recently been plagued by over-allocation. Carbon prices recently collapsed in all these markets during the global recession. Since then, there have been significant policy changes, which have resulted in the adoption of aggressive emission cap targets by most major carbon emission markets. This is expected to make carbon emissions availability more restrictive, raising the prices of these credits. These emissions markets are expected to have a major impact on the wholesale electricity markets. Two models to study the interaction of these two markets are presented. These models assess the impact of the emissions market on wholesale electricity prices. The first model characterizes the competition between two types of power plants (coal and gas) in both the electricity and emissions markets as a dynamic game using the Cournot approximation. Under this approximation, we find that in the Nash equilibrium the plants increase their permit allocation to high-demand periods and the marginal value of each credit for a plant is identical in all periods under their optimal equilibrium strategy. The second numerical model allows us to explicitly evaluate the closed loop equilibrium of the dynamic interaction of two competitors in these markets. We find that plants often try to corner the market and push prices all the way to the price cap. Power plants derive most of their profits from these extreme price regimes. In the experiments where trading is allowed

  19. Demand response in Indian electricity market

    International Nuclear Information System (INIS)

    Siddiqui, Md Zakaria; Maere d'Aertrycke, Gauthier de; Smeers, Yves

    2012-01-01

    This paper outlines a methodology for implementing cost of service regulation in retail market for electricity in India when wholesale market is liberalised and operates through an hourly spot market. As in a developing country context political considerations make tariff levels more important than supply security, satisfying the earmarked level of demand takes a back seat. Retail market regulators are often forced by politicians to keep the retail tariff at suboptimal level. This imposes budget constraint on distribution companies to procure electricity that it requires to meet the earmarked level of demand. This is the way demand response is introduced in the system and has its impact on spot market prices. We model such a situation of not being able to serve the earmarked demand as disutility to the regulator which has to be minimised and we compute associated equilibrium. This results in systematic mechanism for cutting loads. We find that even a small cut in ability of the distribution companies to procure electricity from the spot market has profound impact on the prices in the spot market. - Highlights: ► Modelling the impact of retail tariff in different states on spot prices of electricity in India. ► Retail tariffs are usually fixed below appropriate levels by states due to political reasons. ► Due to revenue constraint distribution utility withdraws demand from spot market in peak hours. ► This adversely affects the scarcity rent of generators and subsequently future investment. ► We show possibility of strategic behaviour among state level regulators in setting retail tariff.

  20. Capacity withholding in wholesale electricity markets: The experience in England and Wales

    Science.gov (United States)

    Quinn, James Arnold

    This thesis examines the incentives wholesale electricity generators face to withhold generating capacity from centralized electricity spot markets. The first chapter includes a brief history of electricity industry regulation in England and Wales and in the United States, including a description of key institutional features of England and Wales' restructured electricity market. The first chapter also includes a review of the literature on both bid price manipulation and capacity bid manipulation in centralized electricity markets. The second chapter details a theoretical model of wholesale generator behavior in a single price electricity market. A duopoly model is specified under the assumption that demand is non-stochastic. This model assumes that duopoly generators offer to sell electricity at their marginal cost, but can withhold a continuous segment of their capacity from the market. The Nash equilibrium withholding strategy of this model involves each duopoly generator withholding so that it produces the Cournot equilibrium output. A monopoly model along the lines of the duopoly model is specified and simulated under the assumption that demand is stochastic. The optimal strategy depends on the degree of demand uncertainty. When there is a moderate degree of demand uncertainty, the optimal withholding strategy involves production inefficiencies. When there is a high degree of demand uncertainty, the optimal monopoly quantity is greater than the optimal output level when demand is non-stochastic. The third chapter contains an empirical examination of the behavior of generators in the wholesale electricity market in England and Wales in the early 1990's. The wholesale market in England and Wales is analyzed because the industry structure in the early 1990's created a natural experiment, which is described in this chapter, whereby one of the two dominant generators had no incentive to behave non-competitively. This chapter develops a classification methodology

  1. Medium-term generation programming in competitive environments: a new optimisation approach for market equilibrium computing

    International Nuclear Information System (INIS)

    Barquin, J.; Centeno, E.; Reneses, J.

    2004-01-01

    The paper proposes a model to represent medium-term hydro-thermal operation of electrical power systems in deregulated frameworks. The model objective is to compute the oligopolistic market equilibrium point in which each utility maximises its profit, based on other firms' behaviour. This problem is not an optimisation one. The main contribution of the paper is to demonstrate that, nevertheless, under some reasonable assumptions, it can be formulated as an equivalent minimisation problem. A computer program has been coded by using the proposed approach. It is used to compute the market equilibrium of a real-size system. (author)

  2. 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...

  3. Models for electricity market efficiency and bidding strategy analysis

    Science.gov (United States)

    Niu, Hui

    This dissertation studies models for the analysis of market efficiency and bidding behaviors of market participants in electricity markets. Simulation models are developed to estimate how transmission and operational constraints affect the competitive benchmark and market prices based on submitted bids. This research contributes to the literature in three aspects. First, transmission and operational constraints, which have been neglected in most empirical literature, are considered in the competitive benchmark estimation model. Second, the effects of operational and transmission constraints on market prices are estimated through two models based on the submitted bids of market participants. Third, these models are applied to analyze the efficiency of the Electric Reliability Council Of Texas (ERCOT) real-time energy market by simulating its operations for the time period from January 2002 to April 2003. The characteristics and available information for the ERCOT market are considered. In electricity markets, electric firms compete through both spot market bidding and bilateral contract trading. A linear asymmetric supply function equilibrium (SFE) model with transmission constraints is proposed in this dissertation to analyze the bidding strategies with forward contracts. The research contributes to the literature in several aspects. First, we combine forward contracts, transmission constraints, and multi-period strategy (an obligation for firms to bid consistently over an extended time horizon such as a day or an hour) into the linear asymmetric supply function equilibrium framework. As an ex-ante model, it can provide qualitative insights into firms' behaviors. Second, the bidding strategies related to Transmission Congestion Rights (TCRs) are discussed by interpreting TCRs as linear combination of forwards. Third, the model is a general one in the sense that there is no limitation on the number of firms and scale of the transmission network, which can have

  4. Analysis of M-stationary points to an EPEC modeling oligopolistic competition in an electricity spot market

    Czech Academy of Sciences Publication Activity Database

    Henrion, R.; Outrata, Jiří; Surowiec, T.

    2012-01-01

    Roč. 18, č. 2 (2012), s. 295-317 ISSN 1292-8119 R&D Projects: GA ČR GA201/09/1957 Institutional support: RVO:67985556 Keywords : Equilibrium problems with equilibrium constraints * EPEC * M-stationary solutions * electricity spot market * calmness Subject RIV: BA - General Mathematics Impact factor: 1.282, year: 2012 http://library.utia.cas.cz/separaty/2012/MTR/outrata-analysis of m-stationary points to an epec modeling oligopolistic competition in an electricity spot market.pdf

  5. Price-signals and long term equilibrium. Reconsidering the organisation of electricity markets

    International Nuclear Information System (INIS)

    Finon, Dominique; Defeuilley, Christophe; Marty, Frederic

    2009-11-01

    The purpose of this article is to show that the reform of the electricity sector, based on a framework of interpretation in which the short-term/long-term articulation is made by the market price, does not result in an efficient result in terms of investment. After a presentation of a bibliographical review on investment in an uncertain context, the authors present a model of decentralised electricity markets which backs reforms. They highlight issues related to production investment which remain unresolved, and which may result in socially inefficient choices on the long term. They report an analysis of two solutions of industrial organisations, long term contracts and vertical and horizontal integration, which could solve these problems

  6. Electricity market 2001

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2001-09-01

    The electricity markets in the Nordic countries have undergone major changes since the electricity market reform work was started in the early 1990s. Sweden, Norway and Finland have had a common electricity market since 1996. The work of also reforming the Danish electricity market was begun in the year 2000. The objective of the electricity market reform is to introduce increased competition, to give the consumers greater freedom of choice and also, by open and expanded trade in electricity, create the conditions for efficient pricing. The Swedish National Energy Administration is the supervisory authority as specified in the Electricity Act, and one of the tasks entrusted to it by the Government is to follow developments on the electricity market and to regularly compile and report current market information. The purpose of the 'Electricity market 2001' publication is to meet the need for generalized and readily accessible information on the conditions on the Nordic market. Iceland is not included in the description. The publication also includes summaries of information from recent years concerning electricity generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective, trade in electricity in the Nordic countries and in Northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment. The publication contains data on electricity generation and use during the past years, structure of the electricity market, trade in electricity in the Nordic countries and northern Europe, electricity prices in the Nordic countries and other countries as well as impact of electricity generation system on the environment.

  7. Electricity market 2001

    International Nuclear Information System (INIS)

    2001-09-01

    The electricity markets in the Nordic countries have undergone major changes since the electricity market reform work was started in the early 1990s. Sweden, Norway and Finland have had a common electricity market since 1996. The work of also reforming the Danish electricity market was begun in the year 2000. The objective of the electricity market reform is to introduce increased competition, to give the consumers greater freedom of choice and also, by open and expanded trade in electricity, create the conditions for efficient pricing. The Swedish National Energy Administration is the supervisory authority as specified in the Electricity Act, and one of the tasks entrusted to it by the Government is to follow developments on the electricity market and to regularly compile and report current market information. The purpose of the 'Electricity market 2001' publication is to meet the need for generalized and readily accessible information on the conditions on the Nordic market. Iceland is not included in the description. The publication also includes summaries of information from recent years concerning electricity generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective, trade in electricity in the Nordic countries and in Northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment. The publication contains data on electricity generation and use during the past years, structure of the electricity market, trade in electricity in the Nordic countries and northern Europe, electricity prices in the Nordic countries and other countries as well as impact of electricity generation system on the environment

  8. A new enhanced bat-inspired algorithm for finding linear supply function equilibrium of GENCOs in the competitive electricity market

    International Nuclear Information System (INIS)

    Niknam, Taher; Sharifinia, Sajjad; Azizipanah-Abarghooee, Rasoul

    2013-01-01

    Highlights: • Present optimal bidding strategies of Generating Companies (GENCOs) in a network-constrained electricity market. • Present new enhanced bat-inspired algorithm. • Consider the bi level optimization problem. • Present a linear supply function model. - Abstract: This paper proposes a new enhanced bat-inspired algorithm to find out linear supply function equilibrium of Generating Companies (GENCOs) in a network-constrained electricity market where they have incomplete information about other rivals. The model enables a GENCO to link its bidding price with the bidding quantity of its product. In this regard, the social welfare maximization is applied to clearing the market and nodal pricing mechanism is utilized to calculate the GENCO’s profit. It is formulated as a bi level optimization problem, where the higher level problem maximizes GENCO’s payoff and the lower level problem solves the independent system operator’s market clearing problem based on the maximization of social welfare. Due to non-convexity nature of the proposed bi level optimization problem, the mathematical-based optimization approach is incapable to solve the problem and obtain the nearly global optima. In order to overcome the obstacle of the conventional approaches, this study suggests a new meta-heuristic Bat-inspired Algorithm (BA) to achieve the nearly global solution of the bi level optimization problem. In addition a novel self-adaptive learning mechanism is utilized on the original BA to improve the population diversity and global searching capability. Numerical examples are applied to three test systems in order to evaluate the performances of the presented framework

  9. Stochastic factor model for electricity spot price-the case of the Nordic market

    International Nuclear Information System (INIS)

    Vehvilaeinen, Iivo; Pyykkoenen, Tuomas

    2005-01-01

    This paper presents a stochastic factor based approach to mid-term modeling of spot prices in deregulated electricity markets. The fundamentals affecting the spot price are modeled independently and a market equilibrium model combines them to form spot price. Main advantage of the model is the transparency of the generated prices because each underlying factor and the dynamics between factors can be modeled and studied in detail. Paper shows realistic numerical examples on the forerunner Scandinavian electricity market. The model is used to price an exotic electricity derivative

  10. Stochastic factor model for electricity spot price - the case of the Nordic market

    International Nuclear Information System (INIS)

    Vehvilainen, I.; Pyykkoenen, T.

    2005-01-01

    This paper presents a stochastic factor based approach to mid-term modeling of spot prices in deregulated electricity markets. The fundamentals affecting the spot price are modeled independently and a market equilibrium model combines them to form spot price. Main advantage of the model is the transparency of the generated prices because each underlying factor and the dynamics between factors can be modeled and studied in detail. Paper shows realistic numerical examples on the forerunner Scandinavian electricity market. The model is used to price an exotic electricity derivative. (author)

  11. Stochastic programming and market equilibrium analysis of microgrids energy management systems

    International Nuclear Information System (INIS)

    Hu, Ming-Che; Lu, Su-Ying; Chen, Yen-Haw

    2016-01-01

    Microgrids facilitate optimum utilization of distributed renewable energy, provides better local energy supply, and reduces transmission loss and greenhouse gas emission. Because the uncertainty in energy demand affects the energy demand and supply system, the aim of this research is to develop a stochastic optimization and its market equilibrium for microgrids in the electricity market. Therefore, a two-stage stochastic programming model for microgrids and the market competition model are derived in this paper. In the stochastic model, energy demand and supply uncertainties are considered. Furthermore, a case study of the stochastic model is conducted to simulate the uncertainties on the INER microgrids in Taiwanese market. The optimal investment of the generators and batteries installation and operating strategies are determined under energy demand and supply uncertainties for the INER microgrids. The results show optimal investment and operating strategies for the current INER microgrids are also determined by the proposed two-stage stochastic model in the market. In addition, trade-off between the battery capacity and microgrids performance is investigated. Battery usage and power trading between the microgrids and main grid systems are the functions of battery capacity. - Highlights: • A two-stage stochastic programming model is developed for microgrids. • Market equilibrium analysis of microgrids is conducted. • A case study of the stochastic model is conducted for INER microgrids.

  12. The supply function equilibrium and its policy implications for wholesale electricity auctions

    International Nuclear Information System (INIS)

    Holmberg, Paer; Newbery, David

    2010-01-01

    The supply function equilibrium provides a game-theoretic model of strategic bidding in oligopolistic wholesale electricity auctions. This paper presents an intuitive account of current understanding and shows how welfare losses depend on the number of firms in the market and their asymmetry. Previous results and general recommendations for divisible-good/multi-unit auctions provides guidance on the design of the auction format, setting the reservation price, the rationing rule, and restrictions on the offer curves in wholesale electricity auctions. (author)

  13. The prerequisites for effective competition in restructured wholesale electricity markets

    International Nuclear Information System (INIS)

    Haas, R.; Auer, H.

    2006-01-01

    This paper argues that effective competition in reformed wholesale electricity markets can only be achieved if the following six prerequisites are met: (1) separation of the grid from generation and supply; (2) wholesale price deregulation; (3) sufficient transmission capacity for a competitive market and non-discriminating grid access; (4) excess generation capacity developed by a large number of competing generators; (5) an equilibrium relationship between short-term spot markets and the long-term financial instruments that marketers use to manage spot-market price volatility; (6) an essentially hands-off government policy that encompasses reduced oversight and privatization. The absence of any one of the first five conditions may result in an oligopoly or monopoly market whose economic performance does not meet the efficiency standards of a competently managed regulated electrical utility. (author)

  14. Electricity market 2000

    Energy Technology Data Exchange (ETDEWEB)

    Korsfeldt, T.; Petsala, B.

    2000-08-01

    The electricity markets in the Nordic countries have undergone major changes since the electricity market reform work was started in the early 1990s. Sweden, Norway and Finland have a common electricity market since 1996.The work of also reforming the Danish electricity market was begun in the year 2000. The objective of the electricity market reform is to introduce increased competition,to give the consumers greater freedom of choice and also, by open and expanded trade in electricity, create the conditions for efficient pricing. The Swedish National Energy Administration is the supervisory authority as specified in the Electricity Act, and one of the tasks entrusted to it by the Government is to follow developments on the electricity market and to regularly compile and report current market information. The purpose of the present publication is to meet the need for generalized and readily accessible information on the conditions on the Nordic markets.The publication includes summaries of information from recent years concerning electricity generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective trade in electricity in the Nordic countries and in Northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment.

  15. Electricity market 2000

    International Nuclear Information System (INIS)

    Korsfeldt, T.; Petsala, B.

    2000-08-01

    The electricity markets in the Nordic countries have undergone major changes since the electricity market reform work was started in the early 1990s. Sweden, Norway and Finland have a common electricity market since 1996.The work of also reforming the Danish electricity market was begun in the year 2000. The objective of the electricity market reform is to introduce increased competition,to give the consumers greater freedom of choice and also, by open and expanded trade in electricity, create the conditions for efficient pricing. The Swedish National Energy Administration is the supervisory authority as specified in the Electricity Act, and one of the tasks entrusted to it by the Government is to follow developments on the electricity market and to regularly compile and report current market information. The purpose of the present publication is to meet the need for generalized and readily accessible information on the conditions on the Nordic markets.The publication includes summaries of information from recent years concerning electricity generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective trade in electricity in the Nordic countries and in Northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment

  16. The international electricity market infrastructure-insight from the nordic electricity market

    DEFF Research Database (Denmark)

    Ma, Zheng; Prljaca, Zerina; Jørgensen, Bo Nørregaard

    2016-01-01

    This paper aims to provide an overview of an international electricity market for the emerging market players to understand and manipulate their roles and relationships in the market by analyzing the former, present, and future Nordic electricity market. The emerging market players...... and their relationships are also discussed in the paper. This paper outlines several suggestions for the future Nordic electricity market development. Furthermore, this paper provides a recommendation for countries interested in participating and developing the cross-national electricity markets with the discussion...... of the historical development of the Nordic electricity market....

  17. Climate change: impacts on electricity markets in Western Europe.

    Science.gov (United States)

    Golombek, Rolf; Kittelsen, Sverre A C; Haddeland, Ingjerd

    This paper studies some impacts of climate change on electricity markets, focusing on three climate effects. First, demand for electricity is affected because of changes in the temperature. Second, changes in precipitation and temperature have impact on supply of hydro electric production through a shift in the inflow of water. Third, plant efficiency for thermal generation will decrease because the temperature of water used to cool equipment increases. To find the magnitude of these partial effects, as well as the overall effects, on Western European energy markets, we use the multi-market equilibrium model LIBEMOD. We find that each of the three partial effects changes the average electricity producer price by less than 2%, while the net effect is an increase of only 1%. The partial effects on total electricity supply are small, and the net effect is a decrease of 4%. The greatest effects are found for Nordic countries with a large market share for reservoir hydro. In these countries, annual production of electricity increases by 8%, reflecting more inflow of water, while net exports doubles. In addition, because of lower inflow in summer and higher in winter, the reservoir filling needed to transfer water from summer to winter is drastically reduced in the Nordic countries.

  18. 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

  19. The impacts of price responsiveness on strategic equilibrium in competitive electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Bompard, Ettore; Ma, Yuchao; Napoli, Roberto [Department of Electrical Engineering, Politecnico di Torino, C.so Duca degli Abruzzi, 24, 10129 Torino (Italy); Abrate, Graziano; Ragazzi, Elena [Ceris-CNR, Via Real Collegio, 30, 10024 Moncalieri (Italy)

    2007-06-15

    One of the most important aspects that may affect market welfare is that related to the low demand responsiveness to price. This situation may greatly impact the market performance causing low efficiency, high prices and a disproportional allocation of surpluses. The structure of electricity markets is usually oligopolistic; producers may bid prices higher than their marginal costs to the short run wholesale market, inducing outcome deviations from the perfect competitive benchmark. The possibility of gaming the market is amplified in the presence of low demand responsiveness to price. This paper proposes a model to assess the role of demand elasticity in mitigating the effects of supply side strategic bidding behavior. We model the supply side in a conjectural supply function (CSF) framework, which allows incorporation of exogenous changes in demand elasticity and different levels of competition in a given market. The impacts of demand responsiveness on the market performances are assessed through a set of proposed indices that are applied to a model of the Italian market. (author)

  20. The impacts of price responsiveness on strategic equilibrium in competitive electricity markets

    International Nuclear Information System (INIS)

    Bompard, Ettore; Ma, Yuchao; Napoli, Roberto; Abrate, Graziano; Ragazzi, Elena

    2007-01-01

    One of the most important aspects that may affect market welfare is that related to the low demand responsiveness to price. This situation may greatly impact the market performance causing low efficiency, high prices and a disproportional allocation of surpluses. The structure of electricity markets is usually oligopolistic; producers may bid prices higher than their marginal costs to the short run wholesale market, inducing outcome deviations from the perfect competitive benchmark. The possibility of gaming the market is amplified in the presence of low demand responsiveness to price. This paper proposes a model to assess the role of demand elasticity in mitigating the effects of supply side strategic bidding behavior. We model the supply side in a conjectural supply function (CSF) framework, which allows incorporation of exogenous changes in demand elasticity and different levels of competition in a given market. The impacts of demand responsiveness on the market performances are assessed through a set of proposed indices that are applied to a model of the Italian market. (author)

  1. Restructuring in the Electricity Markets and Structural Transformation in Turkish Electricity Market

    Directory of Open Access Journals (Sweden)

    Hakan ÇETİNTAŞ

    2015-07-01

    Full Text Available Electricity markets are changed over from monopolistic to competitive structure. In many countries liberalization process in electricity markets began after 1980. In this study models for restructuring the electricity markets are explained with the natural monopoly and its regulation which is discussed in economic theory over many years. Then structural transformation in Turkish Electricity Market is explained within the legal arrangament framework and in liberalization process of electricity markets current state of Turkey is evaluated. In Turkey, the reform process in electricity market began with the liberalization of production and ıt is contiuned to change the design of the wholesale market. There has been significant progress for energy exchange by the establishment of EPİAŞ with the Electricity Market Law Numbered 6446 in 2013.

  2. Strategic bidding for wind power producers in electricity markets

    International Nuclear Information System (INIS)

    Sharma, Kailash Chand; Bhakar, Rohit; Tiwari, H.P.

    2014-01-01

    Highlights: • Game theoretic bidding strategy approach developed to optimize wind power producers bids. • Rival behavior modeled through Stochastic Cournot model. • Location based dual imbalance price mechanism proposed to obtain imbalance charges. • Proposed approach evaluated using two realistic case studies. • Proposed approach increases profit of strategic wind power producers significantly. - Abstract: In evolving electricity markets, wind power producers (WPPs) would increase their profit through strategic bidding. However, generated power by WPPs is highly random, which may result into heavy imbalance charges. In markets dominated by wind generators, they would optimize their offered bids, considering rival behavior. In oligopolistic day-ahead electricity markets, this strategic behavior can be represented as a Stochastic Cournot model. Wind uncertainty is represented by scenarios generated using Auto Regressive Moving Average (ARMA) model. With a consideration of wind power uncertainty and imbalance charges, strategic WPPs can maximize their expected payoff or profit through the proposed Nash equilibrium based bidding strategy. Nash equilibrium is obtained using payoff matrix approach. Proposed approach is evaluated on two realistic case studies considering different technical constraints. Obtained results shows that proposed bidding strategy mechanism offers quantum increase in profit for WPPs, when their behavior is modeled in a game theoretic framework. Flexibility of approach offers opportunities for its extension to associated challenges

  3. Interaction among competitive producers in the electricity market: An iterative market model for the strategic management of thermal power plants

    International Nuclear Information System (INIS)

    Carraretto, Cristian; Zigante, Andrea

    2006-01-01

    The liberalization of the electricity sector requires utilities to develop sound operation strategies for their power plants. In this paper, attention is focused on the problem of optimizing the management of the thermal power plants belonging to a strategic producer that competes with other strategic companies and a set of smaller non-strategic ones in the day-ahead market. The market model suggested here determines an equilibrium condition over the selected period of analysis, in which no producer can increase profits by changing its supply offers given all rivals' bids. Power plants technical and operating constraints are considered. An iterative procedure, based on the dynamic programming, is used to find the optimum production plans of each producer. Some combinations of power plants and number of producers are analyzed, to simulate for instance the decommissioning of old expensive power plants, the installation of new more efficient capacity, the severance of large dominant producers into smaller utilities, the access of new producers to the market. Their effect on power plants management, market equilibrium, electricity quantities traded and prices is discussed. (author)

  4. The electricity market 2003

    International Nuclear Information System (INIS)

    2003-01-01

    The electricity markets in the Nordic countries have undergone major changes since the electricity market reform work was started in the early 1990s. We now have a common Nordic electricity market that includes all of the Nordic countries, with the exception of Iceland. The objective of the electricity market reform is to introduce increased competition, to give consumers greater freedom of choice and also, by open and increased trade in electricity, create the conditions for efficient pricing. The Swedish Energy Agency is the supervisory authority specified in the Electricity Act, and one of the tasks entrusted to it by the Government is to follow developments on the electricity market and regularly compile and report current market information. The purpose of 'The Electricity Market 2003' publication is to meet the need for generalized and easily accessible information on the conditions on the Nordic market. The publication also includes summaries of the information from recent years concerning power generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective, trade in electricity in the Nordic countries and in northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment

  5. Linking electricity prices and costs in bottom-up top-down coupling under changing market environments

    OpenAIRE

    Maire, Sophie

    2016-01-01

    Electricity market liberalization is altering pricing mechanisms in wholesale electricity markets, which will affect the effectiveness of climate and energy policies. Models used to simulate such policies must be responsive to pricing rules. We show how this can be done and simulate a tightening of climate and energy policies. We use a soft-coupled framework composed of a top-down dynamic computable general equilibrium model and a bottom-up dynamic electricity supply model. The first simulate...

  6. 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

  7. The Fisher Market Game: Equilibrium and Welfare

    DEFF Research Database (Denmark)

    Branzei, Simina; Chen, Yiling; Deng, Xiaotie

    2014-01-01

    The Fisher market model is one of the most fundamental resource allocation models in economics. In a Fisher market, the prices and allocations of goods are determined according to the preferences and budgets of buyers to clear the market. In a Fisher market game, however, buyers are strategic...... and report their preferences over goods; the market-clearing prices and allocations are then determined based on their reported preferences rather than their real preferences. We show that the Fisher market game always has a pure Nash equilibrium, for buyers with linear, Leontief, and Cobb-Douglas utility...

  8. Conditions for the Existence of Market Equilibrium.

    Science.gov (United States)

    Bryant, William D. A.

    1997-01-01

    Maintains that most graduate-level economics textbooks rarely mention the need for consumers to be above their minimum wealth position as a condition for market equilibrium. Argues that this omission leaves students with a mistaken sense about the range of circumstances under which market equilibria can exist. (MJP)

  9. Market Survey Turkey. Electricity Market

    International Nuclear Information System (INIS)

    2008-12-01

    The present market survey presents the Turkish power market and derives business opportunities and prospects for Dutch trade and industry. This market survey has been carried out for the following four, from time to time overlapping, sectors that have been identified by EVD as potential opportunities for Dutch small and medium-sized enterprises (SME): renewable energy, energy efficiency, electricity generation, electricity distribution

  10. Unified electricity market

    International Nuclear Information System (INIS)

    Anon

    2011-01-01

    A unified European electricity market means a unification and harmonisation of functioning of the national electricity market into one European Market or into one entity. It gives an opportunity to Slovenske elektrarne to open room for their wider activity within Europe where common rules for cross-boarder trade and markets functioning will apply. (author)

  11. Sustainable Governance for the Opened Electric Vehicle Charging and Upgraded Facilities Market

    Directory of Open Access Journals (Sweden)

    Tian Wu

    2017-11-01

    Full Text Available Since the China State Grid opened the market for infrastructure construction of electric charging stations and allowed Tesla, Potevio, BAIC BJEV and other enterprises to provide their own charging stations and other infrastructure construction, the development of electric vehicles has been greatly affected. How to maintain a sustainable governance in the opened electric vehicle charging and upgraded facilities market is an important policy issues. This paper presents a monopolistic competition model for the differentiated products market and addresses several issues related to Cournot equilibrium to illustrate why the expected free market actually operates in a monopolistic competition market structure. The analytic solution of the model shows that whether the extent of firm entry is insufficient, excessive or optimum is determined by consumers’ time preference, level of production differentiation and features of cost structure, including fixed cost and marginal cost. The sensitivity analysis has been performed among the above factors and tracked some other factors which would determine the effect of the new policy issues. The main policy suggestion is that the government should optimize entry regulations and lay down the criterion of charging interface standards for charging stations to avoid the electric vehicle charging and upgraded facilities marketization process of a one-size-fits-all solution and form a monopolistic competition market.

  12. Design and analysis of electricity markets

    Science.gov (United States)

    Sioshansi, Ramteen Mehr

    Restructured competitive electricity markets rely on designing market-based mechanisms which can efficiently coordinate the power system and minimize the exercise of market power. This dissertation is a series of essays which develop and analyze models of restructured electricity markets. Chapter 2 studies the incentive properties of a co-optimized market for energy and reserves that pays reserved generators their implied opportunity cost---which is the difference between their stated energy cost and the market-clearing price for energy. By analyzing the market as a competitive direct revelation mechanism we examine the properties of efficient equilibria and demonstrate that generators have incentives to shade their stated costs below actual costs. We further demonstrate that the expected energy payments of our mechanism is less than that in a disjoint market for energy only. Chapter 3 is an empirical validation of a supply function equilibrium (SFE) model. By comparing theoretically optimal supply functions and actual generation offers into the Texas spot balancing market, we show the SFE to fit the actual behavior of the largest generators in market. This not only serves to validate the model, but also demonstrates the extent to which firms exercise market power. Chapters 4 and 5 examine equity, incentive, and efficiency issues in the design of non-convex commitment auctions. We demonstrate that different near-optimal solutions to a central unit commitment problem which have similar-sized optimality gaps will generally yield vastly different energy prices and payoffs to individual generators. Although solving the mixed integer program to optimality will overcome such issues, we show that this relies on achieving optimality of the commitment---which may not be tractable for large-scale problems within the allotted timeframe. We then simulate and compare a competitive benchmark for a market with centralized and self commitment in order to bound the efficiency

  13. Essays on electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Rud, Linda

    2009-07-01

    The report covers several topics of electricity markets: The first essay, 'Selected Topics on Early Electricity Market Design in Norway' studies market design issues in establishing the market-based Norwegian electricity market. Essays 2-4 focus on issues of network congestion: 'Capacity Charges: A Price Adjustment Process for Managing Congestion in Electricity Transmission Networks' presents the capacity charge approach for managing transmission constraints in electricity networks. 'Understanding the Stochastics of Nodal Prices: Price Processes in a Constrained Network' seeks a further understanding of stochastic nodal prices processes. 'Investment Evaluation in a Constrained Electricity Network with Stochastic Nodal Price Processes' studies how the interaction of the competitive market and the capacitated network affects the evaluation of investments under uncertainty, and points out potential pitfalls of evaluation. In the last essay, 'A Newsboy Model Perspective on the Power Market: The Case of a Wind Power Producer' we discuss aspects of optimal bidding for a wind power producer. (Author)

  14. Essays on electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Rud, Linda

    2009-07-01

    The report covers several topics of electricity markets: The first essay, 'Selected Topics on Early Electricity Market Design in Norway' studies market design issues in establishing the market-based Norwegian electricity market. Essays 2-4 focus on issues of network congestion: 'Capacity Charges: A Price Adjustment Process for Managing Congestion in Electricity Transmission Networks' presents the capacity charge approach for managing transmission constraints in electricity networks. 'Understanding the Stochastics of Nodal Prices: Price Processes in a Constrained Network' seeks a further understanding of stochastic nodal prices processes. 'Investment Evaluation in a Constrained Electricity Network with Stochastic Nodal Price Processes' studies how the interaction of the competitive market and the capacitated network affects the evaluation of investments under uncertainty, and points out potential pitfalls of evaluation. In the last essay, 'A Newsboy Model Perspective on the Power Market: The Case of a Wind Power Producer' we discuss aspects of optimal bidding for a wind power producer. (Author)

  15. Investments and price formation in a liberalized electric power market. Appendices

    International Nuclear Information System (INIS)

    Morthorst, P.E.

    2005-06-01

    How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. The appendix volume of the project report contains detailed descriptions of the three models that are used: the Balmorel model, the investment model, and the MARS model. The Balmorel model is a partial equilibrium model that describes a coherent, international electric power system and combined heat and power system. The model was developed in 2000 through international co-operation with the aim to have a model for analysing international aspects in the Baltic area. The investment model analyses and models the investment decisions in a liberalized Nordic electric power market. It is an exogenous model constructed outside the Balmorel model but uses the price pictures from the Balmorel model as input. MARS (MARket Simulation) is Eltra's (a Danish electric power transmission company) market model for simulating prices, production, demand and exchanges in the power market. The model covers the Nordic countries (Nord Pool) and Northern Germany. (LN)

  16. Future Electricity Markets

    DEFF Research Database (Denmark)

    Pinson, Pierre

    2015-01-01

    The changing face of energy production in Europe necessitates a rethink in the way that electricity markets are structured. The ‘5s’ (Future Electricity Markets) project is a multi-disciplinary project that is looking to challenge the current approach to the design and operation of electricity...

  17. Electricity markets theories and applications

    CERN Document Server

    Lin, Jeremy

    2017-01-01

    Electricity Markets: Theories and Applications offers students and practitioners a clear understanding of the fundamental concepts of the economic theories, particularly microeconomic theories, as well as information on some advanced optimization methods of electricity markets. The authors--noted experts in the field--cover the basic drivers for the transformation of the electricity industry in both the United States and around the world and discuss the fundamentals of power system operation, electricity market design and structures, and electricity market operations. The text also explores advanced topics of power system operations and electricity market design and structure including zonal versus nodal pricing, market performance and market power issues, transmission pricing, and the emerging problems electricity markets face in smart grid and micro-grid environments. The authors also examine system planning under the context of electricity market regime. They explain the new ways to solve problems with t...

  18. 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.

  19. The electricity market

    International Nuclear Information System (INIS)

    2015-01-01

    After a first part proposing predictions for electricity production and consumption for 2016, for the turnovers of electricity suppliers and producers, an indication of important recent important events regarding enterprises belonging to the sector, and a dashboard of the sector activity, an annual report proposes a detailed overview of trends and of the competition context for the electricity market. It identifies the main market opportunities for electricity suppliers, identifies eight determining factors for the sector activity, gives an overview of the sector context evolution between 2004 and 2014 (temperatures, rainfalls, manufacturing industry production, housing and office building stock, projected housing and office building). It analyses the evolution of the sector activity by presenting and commenting various activity indicators and financial performance of electricity producers. It analyses the sector economic structure: evolution of the economic fabric, presentation of various structural characteristics (cross-border exchanges, production capacities per energy source, nuclear plant fleet, thermal plant fleet, location, electricity supply market). It proposes a presentation of the various actors and of their respective market shares, and presentations of groups, electricity suppliers, and electricity producers. It indicates highlights and presents various rankings of the main enterprises in 2014

  20. Slovenian and Spanish electricity markets

    International Nuclear Information System (INIS)

    Bregar, Z.

    2004-01-01

    Spanish electricity market has served as a basic model in the construction of the electricity market in Slovenia. However, in the final phase of its development additional solutions were adopted from other European and worldwide electricity markets. The electricity market thus obtained is in some aspects more complex and in others simpler with regard to the original model. This article describes two of the new solutions on the Slovenian electricity market: the introduction of numerous standardized electric energy products (Band, Peak, Off-peak, Hourly power etc.) to be traded on completely separate markets, and the introduction of continuous, real-time type trading on all of them but the hourly market.(author)

  1. Market completeness. How options affect hedging and investments in the electricity sector

    International Nuclear Information System (INIS)

    Willems, Bert; Morbee, Joris

    2010-01-01

    The high volatility of electricity markets gives producers and retailers an incentive to hedge their exposure to electricity prices by buying and selling derivatives. This paper studies how welfare and investment incentives are affected when an increasing number of derivatives are introduced. It develops an equilibrium model of the electricity market with risk averse firms and a set of traded financial products, more specifically: a forward contract and an increasing number of options. We first show that aggregate welfare (the sum of individual firms' utility) increases with the number of derivatives offered, although most of the benefits are captured with one to three options. Secondly, power plant investments typically increase because additional derivatives enable better hedging of investments. However, the availability of derivatives sometimes leads to 'crowding-out' of physical investments because firms' limited risk-taking capabilities are being used to speculate on financial markets. Finally, we illustrate that players basing their investment decisions on risk-free probabilities inferred from market prices, may significantly overinvest when markets are not sufficiently complete. (author)

  2. The role of power exchanges for the creation of a single European electricity market: market design and market regulation

    International Nuclear Information System (INIS)

    Boisseleau, F.

    2004-01-01

    The electricity sector worldwide is undergoing a fundamental transformation of its institutional structure as a consequence of the complex interactions of political, economic and technological forces. The way the industry is organized is changing from vertically integrated monopolies to unbundled structures that favor market mechanisms. This process in Europe, known as the liberalization process, has had a wide impact on the European electricity industry. The focus of this dissertation is an analysis of the role of electricity power exchanges in the recently liberalized electricity markets of Europe. In the context of creating a competitive electricity market at a European level, the key questions considered are the functioning of these power exchanges with respect to electricity characteristics, market design and regulatory framework. In Europe, very little attention has been paid to the role of these new marketplaces and to the issue of market design in general. Hence the main purpose of this work was to analyze how these marketplaces facilitate the trading of electricity and the role they can play in the construction of a pan-European competitive electricity market. An analysis of power exchange requires taking into account the 'double-duality' of such institutions. One, power exchanges are both a market and an institution. As a market they facilitate the trading of electricity and determine an equilibrium price. As an institution power exchanges have their own objectives and constraints, and play a role in the market design of the overall electricity market. Two, the relationship between electricity power exchanges and liberalization is neither linear nor one way: liberalization encourages the birth of such marketplaces yet marketplaces are more than the results of such process, they are also a driving force of the liberalization process. This thesis is divided into three parts. The current situation in Europe and different existing theoretical approaches in

  3. An agent-based simulation of power generation company behavior in electricity markets under different market-clearing mechanisms

    International Nuclear Information System (INIS)

    Aliabadi, Danial Esmaeili; Kaya, Murat; Şahin, Güvenç

    2017-01-01

    Deregulated electricity markets are expected to provide affordable electricity for consumers through promoting competition. Yet, the results do not always fulfill the expectations. The regulator's market-clearing mechanism is a strategic choice that may affect the level of competition in the market. We conceive of the market-clearing mechanism as composed of two components: pricing rules and rationing policies. We investigate the strategic behavior of power generation companies under different market-clearing mechanisms using an agent-based simulation model which integrates a game-theoretical understanding of the auction mechanism in the electricity market and generation companies' learning mechanism. Results of our simulation experiments are presented using various case studies representing different market settings. The market in simulations is observed to converge to a Nash equilibrium of the stage game or to a similar state under most parameter combinations. Compared to pay-as-bid pricing, bid prices are closer to marginal costs on average under uniform pricing while GenCos' total profit is also higher. The random rationing policy of the ISO turns out to be more successful in achieving lower bid prices and lower GenCo profits. In minimizing GenCos' total profit, a combination of pay-as-bid pricing rule and random rationing policy is observed to be the most promising. - Highlights: • An agent-based simulation of generation company behavior in electricity markets is developed. • Learning dynamics of companies is modeled with an extended Q-learning algorithm. • Different market clearing mechanisms of the regulator are compared. • Convergence to Nash equilibria is analyzed under different cases. • The level of competition in the market is studied.

  4. Market power and price structure in the electricity market; Markedsmakt og prisstruktur i kraftmarkedet

    Energy Technology Data Exchange (ETDEWEB)

    Halseth, Arve

    1998-12-01

    This report evaluates the importance of market power on price formation and price structure in the Norwegian electricity market. A simple oligopoly model is used to show how the equilibrium is affected by demand, distribution of capacity between two major suppliers, and marginal production costs, given that the suppliers do not cooperate. Two important conclusions can be drawn from the calculations: (1) a high concentration on the supply side does not necessarily lead to essential market power, and (2) market power may contribute to increased stability and predictability. The main conclusion is that market power can be positive for society and it is not uniquely associated with a high concentration on the supply side. If emphasis is placed on stability and predictability, market power should not be defined as deviation from prices under free competition but rather should be related to the requirement that the suppliers should not obtain unreasonably high profit with unreasonably little utilization of capacity. 10 refs., 11 figs.

  5. Electricity market risk management using forward contracts with bilateral options

    International Nuclear Information System (INIS)

    Chung, T.S.; Yu, C.W.; Wong, K.P.; Zhang, S.H.

    2003-01-01

    Extreme short-term price volatility in competitive electricity markets creates the need for risk management arrangements. A new electricity forward contract with bilateral financial options is introduced, which allows both seller and buyer to take advantage of flexibility in generation and consumption to obtain monetary benefits while simultaneously removing the risk of market price fluctuations. The option theory is incorporated to formulate the contract price. The strike prices of options are derived from solving an equilibrium model in which both the buyer and the seller aim to maximise their own profit. Theoretical analysis shows that the proposed optional forward contract presents a more equitable and reasonable payoff structure that allows the buyer and seller to earn a larger overall expected benefit, and the contractual arrangement supports efficiency in economic dispatch of electricity production and consumption. The insights obtained from these results will be helpful to participants in the contractual decision-making process. (Author)

  6. Risk management and market efficiency on the Midwest Independent System Operator electricity exchange

    Science.gov (United States)

    Jones, Kevin

    Midwest Independent Transmission System Operator, Inc. (MISO) is a non-profit regional transmission organization (RTO) that oversees electricity production and transmission across thirteen states and one Canadian province. MISO also operates an electronic exchange for buying and selling electricity for each of its five regional hubs. MISO oversees two types of markets. The forward market, which is referred to as the day-ahead (DA) market, allows market participants to place demand bids and supply offers on electricity to be delivered at a specified hour the following day. The equilibrium price, known as the locational marginal price (LMP), is determined by MISO after receiving sale offers and purchase bids from market participants. MISO also coordinates a spot market, which is known as the real-time (RT) market. Traders in the real-time market must submit bids and offers by thirty minutes prior to the hour for which the trade will be executed. After receiving purchase and sale offers for a given hour in the real time market, MISO then determines the LMP for that particular hour. The existence of the DA and RT markets allows producers and retailers to hedge against the large fluctuations that are common in electricity prices. Hedge ratios on the MISO exchange are estimated using various techniques. No hedge ratio technique examined consistently outperforms the unhedged portfolio in terms of variance reduction. Consequently, none of the hedge ratio methods in this study meet the general interpretation of FASB guidelines for a highly effective hedge. One of the major goals of deregulation is to bring about competition and increased efficiency in electricity markets. Previous research suggests that electricity exchanges may not be weak-form market efficient. A simple moving average trading rule is found to produce statistically and economically significant profits on the MISO exchange. This could call the long-term survivability of the MISO exchange into question.

  7. Unilateral and collusive market power in the electricity pool of England and Wales

    International Nuclear Information System (INIS)

    Bunn, D.W.; Martoccia, M.

    2005-01-01

    This paper uses a detailed market microsimulation of agent bidding behaviour to provide insights into the evolution of generator market power in the electricity pool of England and Wales. We identify an evolution, as market concentration declined, from unilateral market power dominance in the early years (1990-1996) to tacit collusive coordination towards the end (1996-2001), whereupon the pool was replaced by voluntary bilateral trading. The microsimulation analysis does not provide closed form solutions for market equilibrium nor a multi-agent co-evolutionary set of scenarios, but provides a diagnostic aid in determining when market concentration may decline to the point at which price leadership gives way to tacit collusion as means of exercising market power. (author)

  8. 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.

  9. Oligopolistic competition in wholesale electricity markets: Large-scale simulation and policy analysis using complementarity models

    Science.gov (United States)

    Helman, E. Udi

    This dissertation conducts research into the large-scale simulation of oligopolistic competition in wholesale electricity markets. The dissertation has two parts. Part I is an examination of the structure and properties of several spatial, or network, equilibrium models of oligopolistic electricity markets formulated as mixed linear complementarity problems (LCP). Part II is a large-scale application of such models to the electricity system that encompasses most of the United States east of the Rocky Mountains, the Eastern Interconnection. Part I consists of Chapters 1 to 6. The models developed in this part continue research into mixed LCP models of oligopolistic electricity markets initiated by Hobbs [67] and subsequently developed by Metzler [87] and Metzler, Hobbs and Pang [88]. Hobbs' central contribution is a network market model with Cournot competition in generation and a price-taking spatial arbitrage firm that eliminates spatial price discrimination by the Cournot firms. In one variant, the solution to this model is shown to be equivalent to the "no arbitrage" condition in a "pool" market, in which a Regional Transmission Operator optimizes spot sales such that the congestion price between two locations is exactly equivalent to the difference in the energy prices at those locations (commonly known as locational marginal pricing). Extensions to this model are presented in Chapters 5 and 6. One of these is a market model with a profit-maximizing arbitrage firm. This model is structured as a mathematical program with equilibrium constraints (MPEC), but due to the linearity of its constraints, can be solved as a mixed LCP. Part II consists of Chapters 7 to 12. The core of these chapters is a large-scale simulation of the U.S. Eastern Interconnection applying one of the Cournot competition with arbitrage models. This is the first oligopolistic equilibrium market model to encompass the full Eastern Interconnection with a realistic network representation (using

  10. The directive on ''internal market of electric power'': a satisfactory balance

    International Nuclear Information System (INIS)

    1996-01-01

    The european directive on the ''internal market for electric power'' has allowed for the first time the implementation of harmonized regulations among european partners concerning the operation of electric utilities and systems in Europe, while taking into consideration the subsidiarity principles to which France is very much attached and finding an equilibrium between the status-quo based on national or regional monopolies and a global deregulation inspired by ultra-liberal views coming from Britain or the US. The main consequences on France's energy policy and organization are discussed

  11. 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)

  12. Price equilibrium through market forces alone

    International Nuclear Information System (INIS)

    Carpentier, J-M.

    1997-01-01

    The role that deregulation will play in the electricity markets both in Canada and the United States was discussed. The four major consequences of deregulation which affect the industry as a whole are: (1) new competition will distinguish between the more efficient and imaginative utilities from those less able to adapt and provide competitive service, (2) certain utilities may be obliged to buy electricity from independent power producers at predetermined rates, (3) utilities will be thinking in terms of profit margins and immediate profitability which will result in strong incentives to aggressively market their products, (4) utilities will deviate from their traditional roles as electricity suppliers and start selling other services or products, such as gas or telecommunications. The impact that deregulation will have on energy efficiency and the environment was also discussed. It was noted that the cheapest sources of electricity, such as coal-fired stations, are also the most harmful to the environment. It was suggested that it may be necessary to introduce universal taxes on greenhouse gases or other pollutants to enforce stringent environmental standards for the industry. Expert opinion holds that in a wide-open competitive market the industry could cope with such constraints

  13. Termination of Dynamic Contracts in an Equilibrium Labor Market Model

    OpenAIRE

    Wang, Cheng

    2005-01-01

    I construct an equilibrium model of the labor market where workers and firms enter into dyamic contracts that can potentially last forever, but are subject to optimal terminations. Upon a termination, the firm hires a new worker, and the worker who is terminated receives a termination compensation from the firm and is then free to go back to the labor market to seek new employment opportunities and enter into new dynamic contracts. The model permits only two types of equilibrium terminations ...

  14. Market power in interactive environmental and energy markets

    DEFF Research Database (Denmark)

    Amundsen, Eirik S; Nese, Gjermund

    2017-01-01

    electricity and TGC markets, and focus on the role of market power (i.e., Stackelberg leadership). One result is that a certificate system faced with market power may collapse into a system of per-unit subsidies. Also, the model shows that TGCs may be an imprecise instrument for regulating the generation......A market for tradable green certificates (TGCs) is strongly interwoven in the electricity market in that the producers of green electricity are also the suppliers of TGCs. Therefore, strategic interaction may result. We formulate an analytic equilibrium model for simultaneously functioning...

  15. Mathematical modelling of electricity market with renewable energy sources

    International Nuclear Information System (INIS)

    Marchenko, O.V.

    2007-01-01

    The paper addresses the electricity market with conventional energy sources on fossil fuel and non-conventional renewable energy sources (RESs) with stochastic operating conditions. A mathematical model of long-run (accounting for development of generation capacities) equilibrium in the market is constructed. The problem of determining optimal parameters providing the maximum social criterion of efficiency is also formulated. The calculations performed have shown that the adequate choice of price cap, environmental tax, subsidies to RESs and consumption tax make it possible to take into account external effects (environmental damage) and to create incentives for investors to construct conventional and renewable energy sources in an optimal (from the society view point) mix. (author)

  16. Modeling Demand Response in Electricity Retail Markets as a Stackelberg Game

    DEFF Research Database (Denmark)

    Zugno, Marco; Morales González, Juan Miguel; Pinson, Pierre

    We model the retail market with dynamic pricing as a Stackelberg game where both retailers (leaders) and flexible consumers (followers) solve an economic cost-minimization problem. The electricity retailer optimizes an economic objective over a daily horizon by setting an hourly price-sequence, w......We model the retail market with dynamic pricing as a Stackelberg game where both retailers (leaders) and flexible consumers (followers) solve an economic cost-minimization problem. The electricity retailer optimizes an economic objective over a daily horizon by setting an hourly price...... with Equilibrium Constraints (MPEC) and cast as a Mixed Integer Linear Program (MILP), which can be solved using off-the-shelf optimization software. In an illustrative example, we consider a retailer associated with both flexible demand and wind power production. Such an example shows the efficiency of dynamic...

  17. The market equilibrium of OPEC's pricing mechanism

    International Nuclear Information System (INIS)

    Hammoudeh, S.; Madan, V.

    1990-01-01

    At least twice a year, oil ministers of the Organization of the Petroleum Exporting Countries (OPEC) meet in Vienna or Geneva to adjust the group's output ceiling to eliminate discrepancies between the market price and the target price. If the market imbalances are persistent, then the target price is also adjusted. Often, OPEC's members differ in their assessment of future market demand for their oil and, thus, present different views on the need to adjust the output celing and the target price. During periods of downward pressures on oil prices, the high absorbers of capital (i.e., oil revenues) prefer a speedy downward adjustment to the celing, while the low absorbers are slow to react. However, in the event of tightening markets, the low absorbers usually respond by exceeding their quotas before agreeing on a ceiling adjustment. Therefore, OPEC nations have different desirable speeds of adjustment. This paper specifies and examines the stability of OPEC's pricing mechanism. It presents a strategy which would enable the organization to achieve a target price-based market equilibrium with increased rapidity through the appropriate manipulation of the speed of output ceiling adjustment. This strategy is applied using data on market and target prices, actual output, and output ceilings for the first quarter of 1991. The main finding is that, given the target price, OPEC's equilibrium market demand is significantly lower than the assigned output ceiling. Production should have been reduced by at least 3 million barrels a day for OPEC to realize the $21 per barrel target price in the first quarter of 1991. Seasonal factors can cause slight variations in this output but would not bring out compatibility between the target price and the output ceiling within a reasonable period of time unless OPEC follows an activist policy of output adjustment. 3 figs., 1 tab

  18. Wholesale electricity markets in Europe

    International Nuclear Information System (INIS)

    Rios, J. L.

    2010-01-01

    Electricity Wholesale Markets provide efficient operation of power stations, facilitate hedging instruments for generators and retailers and deliver price signals for new investments. Despite having a common regulatory framework at European level whose last aim is a single electricity market, Wholesale markets have been unevenly developed in each Member State. The evolution form a spot-based market towards a forward-based market needs a certain level of liquidity, transparency and regulatory stability. Interconnections are the key element to promote the integration of electricity markets. To facilitate this, European Regional Initiatives have pushed regulatory harmonization between countries and market coupling projects. (Author)

  19. Alberta's electricity forwards market

    International Nuclear Information System (INIS)

    Andrews, D.

    2002-01-01

    This paper outlined how the province of Alberta is starting over with a wholesale electricity market. Wholesalers have retreated back to the real-time market. The Watt-Ex standard market design position paper, issued in October 2002, examines wholesale market issues. The author notes that the biggest constraint to competitive electricity market is the reliance on real-time markets to price a good portion of transactions. Doing so, creates extreme price volatility and ineffective price signals because demand and supply have only a limited ability to respond to prices

  20. Study on electricity markets in Romania

    Directory of Open Access Journals (Sweden)

    Alexandra FLOREA

    2017-03-01

    Full Text Available In this paper, we detail about the components of the wholesale electricity market in Romania: Market for Bilateral Contracts (Central Market with continuous double negotiation of bilateral electric energy contracts (CM - OTC, Centralized Market for bilateral electric energy contracts, Day-Ahead Market (DAM, Inter-Daily Market (IM, Balancing Market (BM, Centralized Market for universal service (CMUS. In addition, for each type of market we generated diagrams with the main business processes.

  1. Assessing market structures in resource markets. An empirical analysis of the market for metallurgical coal using various equilibrium models

    Energy Technology Data Exchange (ETDEWEB)

    Lorenczik, Stefan; Panke, Timo [Koeln Univ. (Germany). Inst. of Energy Economics

    2015-05-15

    The prevalent market structures found in many resource markets consist of a high concentration on the supply side and a low demand elasticity. Market results are therefore frequently assumed to be an outcome of strategic interaction between producers. Common models to investigate the market outcomes and underlying market structures are games representing competitive markets, strategic Cournot competition and Stackelberg structures taking into account a dominant player acting first followed by one or more followers. Besides analysing a previously neglected scenario of the latter kind, we add to the literature by expanding the application of mathematical models by applying an Equilibrium Problem with Equilibrium Constraints (EPEC), which is used to model multi-leader-follower games, to a spatial market. We apply our model by investigating the prevalent market setting in the international market for metallurgical coal between 2008 and 2010, whose market structure provides arguments for a wide variety of market structures. Using different statistical measures and comparing model with actual market outcomes, we find that two previously neglected settings perform best: First, a setting in which the four largest metallurgical coal exporting firms compete against each other as Stackelberg leaders, while the remainders act as Cournot followers. Second, a setting with BHPB acting as sole Stackelberg leader.

  2. Assessing market structures in resource markets. An empirical analysis of the market for metallurgical coal using various equilibrium models

    International Nuclear Information System (INIS)

    Lorenczik, Stefan; Panke, Timo

    2015-01-01

    The prevalent market structures found in many resource markets consist of a high concentration on the supply side and a low demand elasticity. Market results are therefore frequently assumed to be an outcome of strategic interaction between producers. Common models to investigate the market outcomes and underlying market structures are games representing competitive markets, strategic Cournot competition and Stackelberg structures taking into account a dominant player acting first followed by one or more followers. Besides analysing a previously neglected scenario of the latter kind, we add to the literature by expanding the application of mathematical models by applying an Equilibrium Problem with Equilibrium Constraints (EPEC), which is used to model multi-leader-follower games, to a spatial market. We apply our model by investigating the prevalent market setting in the international market for metallurgical coal between 2008 and 2010, whose market structure provides arguments for a wide variety of market structures. Using different statistical measures and comparing model with actual market outcomes, we find that two previously neglected settings perform best: First, a setting in which the four largest metallurgical coal exporting firms compete against each other as Stackelberg leaders, while the remainders act as Cournot followers. Second, a setting with BHPB acting as sole Stackelberg leader.

  3. Economic analysis of price premiums in the presence of non-convexities. Evidence from German electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Paschmann, Martin

    2017-11-15

    Analyzing price data from sequential German electricity markets, namely the day-ahead and intraday auction, a puzzling but apparently systematic pattern of price premiums can be identified. The price premiums are highly correlated with the underlying demand profile. As there is evidence that widespread models for electricity forward premiums are not applicable to the market dynamics under analysis, a theoretical model is developed within this article which reveals that non-convexities in only a subset of sequential markets with differing product granularity may cause systematic price premiums at equilibrium. These price premiums may be bidirectional and reflect a value for additional short-term power supply system flexibility.

  4. Economic analysis of price premiums in the presence of non-convexities. Evidence from German electricity markets

    International Nuclear Information System (INIS)

    Paschmann, Martin

    2017-01-01

    Analyzing price data from sequential German electricity markets, namely the day-ahead and intraday auction, a puzzling but apparently systematic pattern of price premiums can be identified. The price premiums are highly correlated with the underlying demand profile. As there is evidence that widespread models for electricity forward premiums are not applicable to the market dynamics under analysis, a theoretical model is developed within this article which reveals that non-convexities in only a subset of sequential markets with differing product granularity may cause systematic price premiums at equilibrium. These price premiums may be bidirectional and reflect a value for additional short-term power supply system flexibility.

  5. The Nordic financial electricity market

    Energy Technology Data Exchange (ETDEWEB)

    2010-11-15

    NordREG is a cooperation of the Nordic energy regulators. The mission is to actively promote legal and institutional framework and conditions necessary for developing the Nordic and European electricity markets. The financial market is an important market for market participants to mitigate their risks. By providing tools for risk management, the financial market contributes to the efficient functioning of both wholesale and end-user markets. NordREG decided during 2009 to undertake a study on the Nordic financial electricity market. The aim of the report is to consider whether any improvements can be made to further increase the efficiency of the Nordic financial electricity market in order to secure an optimal price setting in the wholesale and the end-user markets

  6. Market power in electricity markets: Beyond concentration measures

    International Nuclear Information System (INIS)

    Borenstein, S.; Bushnell, J.; Knittel, C.R.

    1999-01-01

    The wave of electricity market restructuring both within the US and abroad has brought the issue of horizontal market power to the forefront of energy policy. Traditionally, estimation and prediction of market power has relied heavily on concentration measures. In this paper, the authors discuss the weaknesses of concentration measures as a viable measure of market power in the electricity industry, and they propose an alternative method based on market simulations that take advantage of existing plant level data. The authors discuss results from previous studies they have performed, and present new results that allow for the detection of threshold demand levels where market power is likely to be a problem. In addition, the authors analyze the impact of that recent divestitures in the California electricity market will have on estimated market power. They close with a discussion of the policy implications of the results

  7. Applicability of Markets to Global Scheduling in Grids: Critical Examination of General Equilibrium Theory and Market Folklore

    Science.gov (United States)

    Nakai, Junko; VanDerWijngaart, Rob F.

    2003-01-01

    Markets are often considered superior to other global scheduling mechanisms for distributed computing systems. This claim is supported by: a casual observation from our every-day life that markets successfully equilibrate supply and demand, and the features of markets which originate in the general equilibrium theory, e.g., efficiency and the lack of necessity of 2 central controller. This paper describes why such beliefs in markets are not warranted. It does so by examining the general equilibrium theory, in terms of scope, abstraction, and interpretation. Not only does the general equilibrium theory fail to provide a satisfactory explanation of actual economies, including a computing-resource economy, it also falls short of supplying theoretical foundations for commonly held views of market desirability. This paper also points out that the argument for the desirability of markets involves circular reasoning and that the desirability can be established only vis-a-vis a scheduling goal. Finally, recasting the conclusion of Arrow's Impossibility Theorem as that for global scheduling, we conclude that there exists no market-based scheduler that is rational (in the sense defined in microeconomic theory), takes into account utility of more than one user, and yet yields a Pareto-optimal outcome for arbitrary user utility functions.

  8. Effects of long-term contracts on firms exercising market power in transmission constrained electricity markets

    International Nuclear Information System (INIS)

    Nam, Young Woo; Yoon, Yong Tae; Park, Jong-Keun; Hur, Don; Kim, Sung-Soo

    2006-01-01

    The electricity markets with only few large firms are often vulnerable to less competitive behaviors than the desired. The presence of transmission constraints further restrict the competition among firms and provide more opportunities for firms to exercise market power. While it is generally acknowledged that the long-term contracts provide good measures for mitigating market power in the spot market (thus reducing undesired price spikes), it is not even more clear how effective these contracts are if the market is severely limited due to transmission constraints. In this paper, an analytical approach through finding a Nash equilibrium is presented to investigate the effects of long-term contracts on firms exercising market power in a bid-based pool with transmission constraints. Surprisingly the analysis in this paper shows that the presence of long-term contracts may result in the reduced expected social welfare. A straightforward consequence of the analysis presented in this paper will be helpful for the regulators in Korea to reconsider offering vesting contracts to generating companies in the near future. (author)

  9. Econometric analysis of Australian emissions markets and electricity prices

    International Nuclear Information System (INIS)

    Cotton, Deborah; De Mello, Lurion

    2014-01-01

    Emissions trading schemes aim to reduce the emissions in certain pollutants using a market based scheme where participants can buy and sell permits for these emissions. This paper analyses the efficiency of the two largest schemes in Australia, the NSW Greenhouse Gas Abatement Scheme and the Mandatory Renewable Energy Trading Scheme, through their effect on the electricity prices from 2004 to 2010. We use a long run structural modelling technique for the first time on this market. It provides a practical long-run approach to structural relationships which enable the determination of the effectiveness of the theoretical expectations of these schemes. The generalised forecast error variance decomposition analysis finds that both schemes' emissions prices have little effect on electricity prices. Generalised impulse response function analysis support this finding indicating that when shocks are applied to electricity by the two schemes it returns to equilibrium very quickly. This indicates that these schemes are not having the effect anticipated in their legislation. - Highlights: • We analyse two emissions trading schemes in Australia. • We test for their effect on wholesale electricity prices. • The test uses generalised forecast error variance decomposition analysis. • The tests find long run relationship between the variables in both the samples. • The short run-dynamics indicate that they play a minimal role in electricity prices

  10. Pricing of reserves. Valuing system reserve capacity against spot prices in electricity markets

    International Nuclear Information System (INIS)

    Just, Sebastian; Weber, Christoph

    2008-01-01

    This paper models the interdependencies between markets for secondary reserve capacity and spot electricity to derive the pricing of reserves under equilibrium conditions. Starting with the indifference condition between offering in both markets, the reservation price is derived from the opportunity cost consideration and the unit commitment conditions in a fundamental interrelated market framework. The reserve market examined compares widely to the German market for secondary reserves, but the general approach may also be used to investigate other reserve markets. The approach explores and formalizes the influence of reserve capacity on the spot market supply function. A numerical solution procedure is provided to this non-trivial case of market interaction. The model is used to estimate the expected reservation price development over the last years in Germany. (author)

  11. Electric vehicles in imperfect electricity markets: The case of Germany

    International Nuclear Information System (INIS)

    Schill, Wolf-Peter

    2011-01-01

    We use a game-theoretic model to analyze the impacts of a hypothetical fleet of plug-in electric vehicles on the imperfectly competitive German electricity market. Electric vehicles bring both additional demand and additional storage capacity to the market. We determine the effects on prices, welfare, and electricity generation for various cases with different players in charge of vehicle operations. Vehicle loading increases generator profits, but decreases consumer surplus in the power market. If excess vehicle batteries can be used for storage, welfare results are reversed: generating firms suffer from the price-smoothing effect of additional storage, whereas power consumers benefit despite increasing overall demand. Strategic players tend to under-utilize the storage capacity of the vehicle fleet, which may have negative welfare implications. In contrast, we find a market power-mitigating effect of electric vehicle recharging on oligopolistic generators. Overall, electric vehicles are unlikely to be a relevant source of market power in Germany in the foreseeable future. - Highlights: → We study the effect of electric vehicles on an imperfectly competitive electricity market. → We apply a game-theoretic model to the German market. → There is a market power-mitigating effect of vehicle loading on oligopolistic generating firms. → Consumers benefit from electric vehicles if excess battery capacity can be used for grid storage. → Electric vehicles are unlikely to be a source of market power in Germany in the near future.

  12. Essays on restructured electricity markets

    Science.gov (United States)

    Nicholson, Emma Leah

    This dissertation focuses on the performance of restructured electricity markets in the United States. In chapter 1, I study bidder-specific offer caps ("BSOCs") which are used to mitigate market power in three wholesale electricity markets. The price of electricity is determined through multi-unit uniform price auctions and BSOCs impose an upper limit, which is increasing in marginal cost, on each generator's bid. I apply BSOCs in both the uniform and discriminatory price auctions and characterize the equilibria in a two firm model with stochastic demand. BSOCs unambiguously increase expected production efficiency in the uniform price auction and they can increase the expected profit of the generator with the lower cap. Chapter 2, coauthored with Ramteen Sioshansi, Ph.D., compares two types of uniform price auction formats used in wholesale electricity markets, centrally committed markets and self committed markets. In centrally committed markets, generators submit two-part bids consisting of a fixed startup cost and a variable (per MWh) energy cost, and the auctioneer ensures that no generator operates at a loss. Generators in self committed markets must incorporate their startup costs into their one part energy bids. We derive Nash equilibria for both the centrally and self committed electricity markets in a model with two symmetric generators with nonconvex costs and deterministic demand. Using a numerical example, we demonstrate that if the caps on the bid elements are chosen appropriately, the two market designs are equivalent in terms of generator revenues and settlement costs. Regulators and prominent academic experts believe that electric restructuring polices have stifled investment in new generation capacity. In chapter 3 I seek to determine whether these fears are supported by empirical evidence. I examine both total investment in megawatts and the number of new investments across regions that adopted different electric restructuring policies to

  13. 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)

  14. Bulgarian electricity market restructuring

    International Nuclear Information System (INIS)

    Ganev, Peter

    2009-01-01

    The energy sector in Bulgaria has undergone major restructuring in recent years. It faces the dual challenges of achieving regulatory stability to attract private investors, and creating a functioning competition energy market. As of the EU Accession in 2007, Bulgaria has fully liberalized power and gas markets. The 2003 Energy Law establishes the energy sector legal framework and sets the basis for creation of a transparent and predictable regulatory environment where the key regulatory responsibilities are vested with the State Energy and Water Regulatory Commission (SEWRC). The energy sector experienced significant problems in the first half of 2007 due to lost production capacities and regulatory failures on the electricity market. Excess price regulations on the market of electricity supplies to household, coupled with insufficient liberalization of imports and exports, create unfavorable conditions for power producers and large electricity users. The energy regulator has tried to achieve several incompatible targets as of July 1, 2007 for maintaining low electricity prices for households in response to political pressure, low power generation prices amid rising input costs, and market opening in compliance with EU regulations. (author)

  15. Electricity prices and generator behaviour in gross pool electricity markets

    International Nuclear Information System (INIS)

    O'Mahoney, Amy; Denny, Eleanor

    2013-01-01

    Electricity market liberalisation has become common practice internationally. The justification for this process has been to enhance competition in a market traditionally characterised by statutory monopolies in an attempt to reduce costs to end-users. This paper endeavours to see whether a pool market achieves this goal of increasing competition and reducing electricity prices. Here the electricity market is set up as a sealed bid second price auction. Theory predicts that such markets should result with firms bidding their marginal cost, thereby resulting in an efficient outcome and lower costs to consumers. The Irish electricity system with a gross pool market experiences among the highest electricity prices in Europe. Thus, we analyse the Irish pool system econometrically in order to test if the high electricity prices seen there are due to participants bidding outside of market rules or out of line with theory. Overall we do not find any evidence that the interaction between generator and the pool in the Irish electricity market is not efficient. Thus, the pool element of the market structure does not explain the high electricity prices experienced in Ireland. - Highlights: • We consider whether a gross pool achieves competitive behaviour. • We analyse the Irish pool system econometrically. • Results indicate the Irish pool system appears to work efficiently. • Generators appear to be bidding appropriately

  16. Equilibria in the competitive retail electricity market considering uncertainty and risk management

    International Nuclear Information System (INIS)

    Kharrati, Saeed; Kazemi, Mostafa; Ehsan, Mehdi

    2016-01-01

    In a medium term planning horizon, a retailer should determine its forward contracting and pool participating strategies as well as the selling price to be offered to the customers. Considering a competitive retail electricity market, the number of clients being supplied by any retailer is a function of the selling prices and some other characteristics of all the retailers. This paper presents an equilibrium problem formulation to model the retailer's medium term decision making problem considering the strategy of other retailers. Decision making of any single retailer is formulated as a risk constraint stochastic programming problem. Uncertainty of pool prices and clients' demands is modeled with scenario generation method and CVaR (conditional value at risk) is used as the risk measure. The resulting single retailer planning problem is a quadratic constrained programming problem which is solved using the Lagrangian relaxation method and the Nash equilibrium point of the competitive retailers is achieved by successive solving of this problem for all the retailers. The performance of the proposed method is demonstrated using a realistic case study of Texas electricity market. - Highlights: • Presenting an equilibrium problem formulation for the retailer's decision-making. • Modeling consumer's retail choice behavior with an econometric model. • Managing the retailer's risk caused by rivals' strategy through CVaR. • Approximating the nonlinear price-quota curve with a piecewise-linear function. • Decomposing the nonlinear optimization problem using Lagrangian relaxation method.

  17. Essays on microgrids, asymmetric pricing and market power in electricity markets

    Science.gov (United States)

    Lo Prete, Chiara

    This dissertation presents four studies of the electricity industry. The first and second essays use economic-engineering models to assess different aspects of microgrid penetration in regional electricity markets, while the last two studies contain empirical analyses aimed at evaluating the performance of wholesale electricity markets. Chapter 2 develops a framework to quantify economic, environmental, efficiency and reliability impacts of different power production scenarios in a regional system, focusing on the interaction of microgrids with the existing transmission and distribution grid. The setting is the regional network formed by Belgium, France, Germany and the Netherlands. The study presents simulations of power market outcomes under various policies and levels of microgrid penetration, and evaluates them using a diverse set of metrics. Chapter 3 studies the interaction between a microgrid and a regulated electric utility in a regional electricity market. I consider the interaction among the utility, the microgrid developer and consumers in the framework of cooperative game theory (assuming exchangeable utility), and use regional market models to simulate scenarios in which microgrid introduction may or may not be socially beneficial. Under the assumptions of this chapter, customer participation is essential to the development of socially beneficial microgrids, while the utility has little or no gain from it. Discussed incentives to avoid that utilities block microgrid entry include additional revenue drivers related to microgrid connection, decoupling and performance-based mechanisms targeted at service quality. When prices are below marginal costs of utility provided power, microgrid development may be socially beneficial, but unprofitable for microgrid customers and its developer. By imposing lower charges and higher remuneration for its services, the regulator could ensure that microgrid value is positive, without adversely impacting the utility

  18. The Inefficiency of the Stock Market Equilibrium under Moral Hazard

    NARCIS (Netherlands)

    Calcagno, R.; Wagner, W.B.

    2003-01-01

    In this paper we study the constrained efficiency of a stock market equilibrium under moral hazard.We extend a standard general equilbrium framework (Magill and Quinzii (1999) and (2002)) to allow for a more general initial ownership distribution.We show that the market allocation is constrained

  19. Interconnections and market integration in the Irish Single Electricity Market

    International Nuclear Information System (INIS)

    Nepal, Rabindra; Jamasb, Tooraj

    2012-01-01

    Interconnections can be an effective way to increase competition and improve market integration in concentrated wholesale electricity markets with limited number of participants. This paper examines the potential for interconnections and increasing market integration in the Irish Single Electricity Market (SEM). We use a time-varying Kalman filter technique to assess the degree of market integration between SEM and other large, mature and interconnected wholesale electricity markets in Europe including Great Britain (GB). The results indicate no market integration between SEM and other European markets except for Elspot and GB. We show that the current state of market integration between SEM and GB is just 17% indicating potential to improve market integration via increased interconnector capacity. The results indicate that liquidity of wholesale markets might be a crucial factor in the market integration process while our results remain inconclusive in determining whether increased trade of renewables can improve market integration. - Highlights: ► We assess the degree of market integration between SEM and other EU electricity markets. ► Our results indicate no market integration between SEM and other European markets except for Elspot and GB. ► We show that the current state of market integration between SEM and GB is just 17%.

  20. Electricity and gas market observatory. 1. quarter 2007

    International Nuclear Information System (INIS)

    2007-01-01

    Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Eligible customer segments and their respective weights, Status at April 1, 2007, Dynamic analysis: 1. Quarter 2007; The wholesale electricity market: Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 1. 2007 quarter; The gas market; The retail gas market: The eligible customer segments and their respective weights, Status at April 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary

  1. Electricity and gas market observatory. 4. quarter 2006

    International Nuclear Information System (INIS)

    2007-01-01

    Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Eligible customer segments and their respective weights, Status at January 1, 2007, Dynamic analysis: 4. Quarter 2007; The wholesale electricity market: Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 4. 2006 quarter; The gas market; The retail gas market: The eligible customer segments and their respective weights, Status at January 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary

  2. Electricity and gas market observatory. 1. quarter 2007

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2007-07-01

    Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Eligible customer segments and their respective weights, Status at April 1, 2007, Dynamic analysis: 1. Quarter 2007; The wholesale electricity market: Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 1. 2007 quarter; The gas market; The retail gas market: The eligible customer segments and their respective weights, Status at April 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary.

  3. Electricity and gas market observatory. 4. quarter 2006

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2007-07-01

    Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Eligible customer segments and their respective weights, Status at January 1, 2007, Dynamic analysis: 4. Quarter 2007; The wholesale electricity market: Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 4. 2006 quarter; The gas market; The retail gas market: The eligible customer segments and their respective weights, Status at January 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary.

  4. Market research for electric utilities

    International Nuclear Information System (INIS)

    Shippee, G.

    1999-01-01

    Marketing research is increasing in importance as utilities become more marketing oriented. Marketing research managers need to maintain autonomy from the marketing director or ad agency and make sure their work is relevant to the utility's operation. This article will outline a model marketing research program for an electric utility. While a utility may not conduct each and every type of research described, the programs presented offer a smorgasbord of activities which successful electric utility marketers often use or have access to

  5. Market research for electric utilities

    Energy Technology Data Exchange (ETDEWEB)

    Shippee, G.

    1999-12-01

    Marketing research is increasing in importance as utilities become more marketing oriented. Marketing research managers need to maintain autonomy from the marketing director or ad agency and make sure their work is relevant to the utility's operation. This article will outline a model marketing research program for an electric utility. While a utility may not conduct each and every type of research described, the programs presented offer a smorgasbord of activities which successful electric utility marketers often use or have access to.

  6. Modeling generator power plant portfolios and pollution taxes in electric power supply chain networks: a transportation network equilibrium transformation

    International Nuclear Information System (INIS)

    Kai Wu; Nagurney, A.; University of Massachusetts, Amherst, MA; Zugang Liu; Stranlund, J.K.

    2006-01-01

    Global climate change and fuel security risks have encouraged international and regional adoption of pollution/carbon taxes. A major portion of such policy interventions is directed at the electric power industry with taxes applied according to the type of fuel used by the power generators in their power plants. This paper proposes an electric power supply chain network model that captures the behavior of power generators faced with a portfolio of power plant options and subject to pollution taxes. We demonstrate that this general model can be reformulated as a transportation network equilibrium model with elastic demands and qualitatively analyzed and solved as such. The connections between these two different modeling schemas is done through finite-dimensional variational inequality theory. The numerical examples illustrate how changes in the pollution/carbon taxes affect the equilibrium electric power supply chain network production outputs, the transactions between the various decision-makers the demand market prices, as well as the total amount of carbon emissions generated. (author)

  7. A Nodal Pricing Analysis of the Future German Electricity Market

    International Nuclear Information System (INIS)

    Ozdemir, O.; Hers, J.S.; Bartholomew Fisher, E.; Brunekreeft, G.; Hobbs, B.F.

    2009-05-01

    The electricity market in Germany is likely to undergo several significant structural changes over the years to come. Here one may think of Germany's ambitious renewable agenda, the disputed decommissioning of nuclear facilities, but also unbundling of TSO's as enforced by European regulation. This study is a scenario-based analysis of the impact of different realizations of known investment plans for transmission and generation capacity on the future German power market while accounting for internal congestion. For this analysis the static equilibrium model of the European electricity market COMPETES is deployed, including a 10-node representation of the German highvoltage grid. Results for the multi-node analysis indicate that price divergence and congestion are likely to arise in the German market as renewable additions affecting mainly the North of Germany, the debated decommissioning of nuclear facilities in the South, and the expected decommissioning of coal-fired facilities in Western Germany appear to render current investment plans for transmission capacity insufficient. The current system of singlezone pricing for the German market may therewith be compromised. However, transmission additions would not benefit all market parties, with producers in exporting regions and consumers in importing regions being the main beneficiaries. Vertical unbundling of German power companies could increase the incentive for constructing transmission lines if generation capacity would cause Germany to be a net-importing country. In case Germany remains a net-exporting country, the effects of vertical unbundling on cross-border capacity are less clear cut.

  8. Outlook for electricity markets 2005-2006 : an energy market assessment

    International Nuclear Information System (INIS)

    2005-06-01

    The National Energy Board monitors the supply of electricity as well as its demand in both domestic and export markets. This document was produced in response to a survey with power generation, transmission and distribution companies, marketers, end-users, environmental groups and government agencies who demonstrated the need for more short-and medium-term energy market assessments to supplement the Board's longer term energy analysis. It on the short-term (2005-2006) issues that can have a long-term effect on the electricity sector. The document presents an analysis of Canadian electricity markets with particular focus on the main drivers affecting current trends in generation, demand, prices, infrastructure additions, and inter-regional and international trade. Current restructuring activities in Canada's electricity industry were also described along with the close relationship between the electricity sectors in Canada and the United States which stems from the integrated nature of the North American power grid. A regional market assessment and a summary was provided for each of Canada's provinces and territories with reference to market structure and current market developments. It was revealed that Canada's electricity markets have developed along provincial or regional boundaries. Utilities have tried to provide adequate and reliable electricity supply, environmental sustainability and acceptable electricity prices. It was concluded that supply is adequate in all regions in the short-term, but tight supply conditions could emerge as early as 2007. Alternative and renewable resource and demand management are becoming more important in addressing air quality issues and supply adequacy. Since uncertainty may delay investment and development of new infrastructure, utilities may be forced to increase electricity prices. It was suggested that interprovincial energy transfers should be further explored. Five recommendations were presented to address the key

  9. Electricity and gas market observatory. 2. Quarter 2008

    International Nuclear Information System (INIS)

    2008-01-01

    The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1 of July 2007, all customers can choose their gas and electricity suppliers. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status at June 30, 2008, Dynamic analysis: 2. Quarter 2008); The wholesale electricity market (Introduction, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market); B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on June 30, 2008, Dynamic analysis: 2. Quarter 2008); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

  10. Long-run equilibrium relationships in the international stock market factor systems

    Directory of Open Access Journals (Sweden)

    Hyung-Suk Choi

    2014-06-01

    Full Text Available The main objective of this paper is to investigate the international linkages among local, country-specific stock market factors in order to better understand the dependence structure of increasingly integrated world financial markets. The seeming discordance between Fama and French (1998 and Griffin (2002 regarding the multi-factor model in the international stock markets motivates us to study the international relationship among local factors. With the individual stock data from the six major developed countries in the international stock market, we compose daily returns to the Fama-French three factors (i.e. market, size, and value and the momentum factor over the period from January 2000 to June 2010. We investigate the international linkages among local stock market factors, focusing on their equilibrium relationship in the integrated world financial market. The cointegration analysis indicates that local factor indices, constructed from the cumulative factor returns, are cointegrated for each of the four factor classes. Thus, we conclude that local factors are globally bound to each other through a long-run equilibrium relationship and that although stock market factors may be local, rather than global, individual stock returns are driven by common global stochastic trends.

  11. Electricity and gas market observatory. 1. Quarter 2007

    International Nuclear Information System (INIS)

    2007-01-01

    Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). It completes the information already published by CRE: - practical information for eligible customers: consumer guide, list of suppliers, - communications regarding markets running; CRE's annual activity report. Content: A - The electricity market: The retail electricity market (Introduction, Eligible customer segments and their respective weights, Status at April 1, 2007, Dynamic analysis: 1. Quarter 2007); The wholesale electricity market (Introduction, Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 1. 2007 quarter); B - The gas market: The retail gas market (Introduction, The eligible customer segments and their respective weights, Status at April 1, 2007); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

  12. Electricity and gas market observatory. 4. Quarter 2006

    International Nuclear Information System (INIS)

    2006-01-01

    Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). It completes the information already published by CRE: - practical information for eligible customers: consumer guide, list of suppliers, - communications regarding markets running; CRE's annual activity report. Content: A - The electricity market: The retail electricity market (Introduction, Eligible customer segments and their respective weights, Status at January 1, 2007, Dynamic analysis: 4. Quarter 2006); The wholesale electricity market (Introduction, Traded volumes on the French wholesale electricity market and comparison with European markets, Prices on the French wholesale electricity market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the 4. 2006 quarter); B - The gas market: The retail gas market (Introduction, The eligible customer segments and their respective weights, Status at January 1, 2007); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

  13. 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....

  14. Electricity and gas market observatory. 4. Quarter 2008

    International Nuclear Information System (INIS)

    2008-01-01

    The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1 of July 2007, all customers can choose their gas and electricity suppliers. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status on December 31, 2008, Dynamic analysis: 4. Quarter 2008); The wholesale electricity market (Introduction, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market); B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on December 31, 2008, Dynamic analysis: 4. Quarter 2008); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France, Prices on the French wholesale market and European comparison, Concentration of the French gas market); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

  15. The crucial relationship among energy commodity prices: Evidence from the Spanish electricity market

    International Nuclear Information System (INIS)

    Moutinho, Victor; Vieira, Joel; Carrizo Moreira, Antonio

    2011-01-01

    The main purpose of this article is twofold to analyze: (a) the long-term relation among the commodities prices and between spot electricity market price and commodity prices, and (b) the short-term dynamics among commodity prices and between electricity prices and commodity prices. Data between 2002 and 2005 from the Spanish electricity market was used. Econometric methods were used in the analysis of the commodity spot price, namely the vector autoregression model, the vector error correction model and the granger causality test. The co-integration approach was used to analyze the long-term relationship between the common stochastic trends of four fossil fuel prices. One of the findings in the long-term relation is that the prices of fuel and the prices of Brent are intertwined, though the prices of Brent ten to 'move' to reestablish the price equilibrium. Another finding is that the price of electricity is explained by the evolution of the natural gas series. - Highlights: → We model energy commodity prices in the Spanish electricity market. → We examine the short and long-term relationships among commodities prices. → We examine short and long-term relationships using co-integration techniques. → We found that in the long run the prices of fuel and Brent are intertwined. → The evolution of price of electricity is explained by the evolution of price of gas.

  16. Electricity market opening and electricity generation system's expansion in Slovenia

    International Nuclear Information System (INIS)

    Kosnjek, Z.; Vidmar, M.; Bregar, Z.

    2000-01-01

    Slovenia is rapidly adopting the European Union (EU) legislation to make itself ready to be admitted the fifteen EU member countries. In the area of energy or electricity supply industry, Slovenia has consequently enforced the Energy law, which in its essence follows the idea of the Directive 96/92/EC. Globally, the Directive defines common rules of the internal electricity market within EU. Any EU member country is responsible for assuring a competitive electricity market and implementing corresponding instruments as foreseen by the Directive. The share of the national market opening is calculated on the basis of eligible customers' consumption versus the overall consumption in a particular member country. Also, the Directive defines the rate of the electricity market opening. It is interesting to note that the EU member countries have been opening their national electricity markets at a greater speed than specified by the Directive. The overall Slovenian Electricity Supply Industry shall have to adapt itself to new imperatives, whereby the greatest changes will by all means take place in the area of electricity generation. As the reaction of eligible domestic market customers is quite unpredictable, the direct electricity import from foreign countries can only be estimated on a variant basis. EU countries that have deregulated their electricity market have been, step by step, gaining valuable experiences. The majority of them show a considerable pressure on having prices of the EPS generation sector reduced. A similar development can by all means be expected in Slovenia, too. it is expected that the major burden of the electricity market liberalisation and electric power interconnecting within EU will be carried by the EPS generation sector. The analyses of developed variants show that the burden, imposed by the transition onto the market economy, will be predominantly carried by the coal fired electricity supply industry. Further development of electricity

  17. Electricity and gas market observatory. 3. Quarter 2007

    International Nuclear Information System (INIS)

    2007-01-01

    The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1 of July 2007, all customers can choose their gas and electricity suppliers. The present observatory is including residential customer's statistics. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status at September 30, 2007, Dynamic analysis: 3. Quarter 2007); The wholesale electricity market (Introduction, Wholesale market activity in France, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market); B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on September 30, 2007, Dynamic analysis: 3. Quarter 2007); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

  18. Grid Integration of Electric Vehicles in Open Electricity Markets

    DEFF Research Database (Denmark)

    congestion management scenario within electric distribution networks •optimal EV charging management with the fleet operator concept and smart charging management •EV battery technology, modelling and tests •the use of EVs for balancing power fluctuations from renewable energy sources, looking at power......Presenting the policy drivers, benefits and challenges for grid integration of electric vehicles (EVs) in the open electricity market environment, this book provides a comprehensive overview of existing electricity markets and demonstrates how EVs are integrated into these different markets...... of the technologies for EV integration, this volume is informative for research professors and graduate students in power systems; it will also appeal to EV manufacturers, regulators, EV market professionals, energy providers and traders, mobility providers, EV charging station companies, and policy makers....

  19. 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

  20. Analysis of the market penetration of clean coal technologies and its impacts in China's electricity sector

    International Nuclear Information System (INIS)

    Wang, Hao; Nakata, Toshihiko

    2009-01-01

    This paper discusses policy instruments for promoting the market penetration of clean coal technologies (CCTs) into China's electricity sector and the evaluation of corresponding effects. Based on the reality that coal will remain the predominant fuel to generate electricity and conventional pulverized coal boiler power plants have serious impacts on environment degradation, development of clean coal technologies could be one alternative to meet China's fast growing demand of electricity as well as protect the already fragile environment. A multi-period market equilibrium model is applied and an electricity model of China is established to forecast changes in the electricity system up to 2030s. Three policy instruments: SO 2 emission charge, CO 2 emission charge and implementing subsidies are considered in this research. The results show that all instruments cause a significant shift in China's electricity structure, promote CCTs' competitiveness and lead China to gain great benefit in both resource saving and environment improvement. Since resource security and environment degradation are becoming primary concerns in China, policies that could help to gain generations' market share of advanced coal-based technologies such as CCTs' is suitable for the current situation of China's electricity sector. (author)

  1. Electricity and gas market observatory. 2. quarter 2007

    International Nuclear Information System (INIS)

    2007-01-01

    Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Non-residential customer segments and their respective weights, Status at July 1, 2007, Dynamic analysis: 2. Quarter 2007; The wholesale electricity market: Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the second quarter 2007; The gas market; The retail gas market: The non-residential customer segments and their respective weights, Status at July 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary

  2. Electricity and gas market observatory. 2. quarter 2007

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2007-07-01

    Since July 1, 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web-site (www.cre.fr). It presents: The electricity market; The retail electricity market: Non-residential customer segments and their respective weights, Status at July 1, 2007, Dynamic analysis: 2. Quarter 2007; The wholesale electricity market: Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking facts of the second quarter 2007; The gas market; The retail gas market: The non-residential customer segments and their respective weights, Status at July 1. 2007; The wholesale gas market: Gas pricing and gas markets in Europe,The wholesale market in France. Some glossaries are attached to the document: Electricity and gas market observatories combined glossary; Specific electricity market observatory glossary; Specific gas market observatory glossary.

  3. Electricity and gas market observatory. 1. Quarter 2008

    International Nuclear Information System (INIS)

    2008-01-01

    The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1. of July 2007, all customers can choose their gas and electricity suppliers. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status at March 31, 2007, Dynamic analysis: 1. Quarter 2008); The wholesale electricity market (Introduction, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market); B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on March 31, 2008, Dynamic analysis: 1. Quarter 2008); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France, Striking fact of the first quarter 2008); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

  4. Electricity and gas market observatory. 4. Quarter 2007

    International Nuclear Information System (INIS)

    2007-01-01

    The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1. of July 2007, all customers can choose their gas and electricity suppliers. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status at December 31, 2007, Dynamic analysis: 4. Quarter 2007); The wholesale electricity market (Introduction, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking fact of the fourth quarter 2007); B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on December 31. 2007, Dynamic analysis: 4. Quarter 2007); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France, Striking fact of the fourth quarter 2007); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

  5. Electricity and gas market observatory 1. Quarter 2009

    International Nuclear Information System (INIS)

    2009-01-01

    The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). Since the 1. of July 2007, all customers can choose their gas and electricity suppliers. Content: A - The electricity market: The retail electricity market (Introduction, Customer segments and their respective weight, Status on March 31, 2009, Dynamic analysis: 1. Quarter 2009), The wholesale electricity market (Introduction, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market). B - The gas market: The retail gas market (Introduction, Customer segments and their respective weight, Status on March 31. 2009, Dynamic analysis: 1. Quarter 2009), The wholesale gas market (Main steps in the French Wholesale gas market, Gas pricing and gas markets in Europe, The wholesale market in France, Prices on the French wholesale market and European comparison, Concentration of the French gas market) C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

  6. Design choices for electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    De Vries, Laurens

    2007-07-01

    Ten years after the first European Electricity Directive, the goal of creating a single European electricity market has not been reached, despite concerted efforts by the EU and certain member states to continue with the reforms. The policy of subsidiarity for many aspects of market design has as a consequence that member countries are implementing a variety of different market designs and are implementing the reforms at varying speeds. The Florence regulatory process, which was intended to provide a bottom-up approach for coordination and harmonization, has effectively stalled and been replaced by a series of 'mini fora' in which smaller groups of countries work on integrating their markets. At the same time, the European electricity supply industry is facing some significant challenges. This paper investigates the different choices that can be made in the design of electricity markets, how they relate to each other and how they relate to the policy goals. (auth)

  7. Electricity system expansion studies to consider uncertainties and interactions in restructured markets

    Science.gov (United States)

    Jin, Shan

    This dissertation concerns power system expansion planning under different market mechanisms. The thesis follows a three paper format, in which each paper emphasizes a different perspective. The first paper investigates the impact of market uncertainties on a long term centralized generation expansion planning problem. The problem is modeled as a two-stage stochastic program with uncertain fuel prices and demands, which are represented as probabilistic scenario paths in a multi-period tree. Two measurements, expected cost (EC) and Conditional Value-at-Risk (CVaR), are used to minimize, respectively, the total expected cost among scenarios and the risk of incurring high costs in unfavorable scenarios. We sample paths from the scenario tree to reduce the problem scale and determine the sufficient number of scenarios by computing confidence intervals on the objective values. The second paper studies an integrated electricity supply system including generation, transmission and fuel transportation with a restructured wholesale electricity market. This integrated system expansion problem is modeled as a bi-level program in which a centralized system expansion decision is made in the upper level and the operational decisions of multiple market participants are made in the lower level. The difficulty of solving a bi-level programming problem to global optimality is discussed and three problem relaxations obtained by reformulation are explored. The third paper solves a more realistic market-based generation and transmission expansion problem. It focuses on interactions among a centralized transmission expansion decision and decentralized generation expansion decisions. It allows each generator to make its own strategic investment and operational decisions both in response to a transmission expansion decision and in anticipation of a market price settled by an Independent System Operator (ISO) market clearing problem. The model poses a complicated tri-level structure

  8. Flexibility as a market requirement - The adaptation of the structure and operations of electricity markets to the production of renewable energies

    International Nuclear Information System (INIS)

    Finon, Dominique

    2014-12-01

    Renewable energies are earmarked to take up a very significant share in the output of some of Europe's electricity Systems. The variability of their contribution makes the maintenance of the system's physical equilibrium a veritable challenge, once the share reaches a certain level. Apart from the necessary technical improvements, the transformation of the System first and foremost requires upgrading the way the different energy markets function

  9. Capacity Market Design: Motivation and Challenges in Alberta’s Electricity Market

    Directory of Open Access Journals (Sweden)

    David Brown

    2018-03-01

    Full Text Available Alberta’s electricity market is currently undergoing a period of substantial transition. The province should proceed with caution as it switches from an energy-only electricity market to a capacity market by 2021. Many other jurisdictions have already made the changeover and Alberta can learn from their experiences in order to avoid common mistakes and pitfalls that can arise with the deployment of a capacity market.There were growing concerns that the existing electricity market structure would not attract sufficient investment from conventional generation (e.g., natural gas due to the increased penetration of zero marginal cost renewable generation. As a result, the Alberta government has chosen to transition to a capacity market. For consumers, a capacity market aims to ensure there is sufficient investment in new generation capacity to “keep the lights on” and reduce price swings in the wholesale market. The capacity market will also help the province meet its goals for attracting investors and transitioning away from its dependence on coal-fired electricity generation.However, a switchover is not as simple as it sounds. In an energy-only market, firms are paid solely based on the provision of electricity in hourly wholesale markets. In capacity markets, electricity-generating firms are also paid for providing generation capacity, reflecting the potential to provide electricity at some point in the future. While capacity markets can help ensure there is a reliable supply of electricity, there are several challenges in the implementation of capacity markets. This paper discusses the motivation for the adoption of capacity markets, highlights challenges regulators face when implementing this market design in the context of Alberta, and summarizes the key trade-offs associated with energy-only versus capacity market designs.Relative to an energy-only market, a capacity market is more complex and requires that regulators specify numerous

  10. A dynamic replicator model of the players' bids in an oligopolistic electricity market

    International Nuclear Information System (INIS)

    Sahraei-Ardakani, Mostafa; Rahimi-Kian, Ashkan

    2009-01-01

    In this paper, the replicator dynamics of the power suppliers' bids in an oligopolistic electricity market are derived for both the fixed and variable demand cases. The replicator dynamics stability analysis is also performed. The dynamics of the electricity markets are the results of players' decisions. The physical parameters of the power systems (such as the lines capacities, voltage limitations, etc.) also affect the market dynamics indirectly, through the changes in players' behaviors. Assuming rational players, an optimal bidding strategy for constructing the supply function (SF) of a generating firm is presented and based on that, the dynamics of the bid replicators are studied. Both fixed demands and price sensitive demands are taken into account. The replicator model is presented in the well-known state space structure. A case study is presented to show the applicability of the developed dynamic replicator bid model, and also to show how the Nash-SFE equilibrium evolves over time. (author)

  11. The European electricity market

    International Nuclear Information System (INIS)

    1988-01-01

    The creation of a single European market also will have its effects on the power and electricity sector. Expectations tied to this abandonment of borders on the electricity market are different: some hope for a reduction of energy costs, others fear safeguarded supplies to be at risk. It cannot be fully judged at present what the situation will be on a strongly integrated, European power and electricity market, and the brochure in hand is intended to present a first survey of the situation from the perspective of the power industry and energy policy, concentrating on main aspects. The survey is compiled in the form of reprints of journal articles written on this topic by a number of well-known German experts in the field. (orig./HP) [de

  12. Capacity Market Design: Motivation and Challenges in Alberta’s Electricity Market

    OpenAIRE

    David Brown

    2018-01-01

    Alberta’s electricity market is currently undergoing a period of substantial transition. The province should proceed with caution as it switches from an energy-only electricity market to a capacity market by 2021. Many other jurisdictions have already made the changeover and Alberta can learn from their experiences in order to avoid common mistakes and pitfalls that can arise with the deployment of a capacity market.There were growing concerns that the existing electricity market structure wo...

  13. Impact of the Kyoto Protocol on the Iberian Electricity Market: A scenario analysis

    International Nuclear Information System (INIS)

    Reneses, Javier; Centeno, Efraim

    2008-01-01

    This paper presents an assessment of the impact of the Kyoto Protocol on the Iberian Electricity Market during two periods: the first phase (2005-2007) and the second phase (2008-2012). A market-equilibrium model is used in order to analyze different conditions faced by generation companies. Scenarios involving CO 2 -emission prices, hydro conditions, demand, fuel prices and renewable generation are considered. This valuation will show the significance of CO 2 -emission prices as regards Spanish and Portuguese electricity prices, generation mix, utilities profits and the total CO 2 emissions. Furthermore, the results will illustrate how energy policies implemented by regulators are critical for Spain and Portugal in order to mitigate the negative impact of the Kyoto Protocol. In conclusion, the Iberian electricity system will not be able to reach the Kyoto targets, except in very favorable conditions (CO 2 -emission prices over Euro 15/ton and the implementation of very efficient energy policies)

  14. 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

  15. The green electricity market model. Proposal for an optional, cost-neutral direct marketing model for supplying electricity customers

    International Nuclear Information System (INIS)

    Heinemann, Ronald

    2014-01-01

    One of the main goals of the Renewable Energy Law (EEG) is the market integration of renewable energy resources. For this purpose it has introduced compulsory direct marketing on the basis of a moving market premium. At the same time the green electricity privilege, a regulation which made it possible for customers to be supplied with electricity from EEG plants, has been abolished without substitution with effect from 1 August 2014. This means that, aside from other direct marketing channels, which will not be economically viable save for in a few exceptional cases, it will no longer be possible in future to sell electricity from EEG plants to electricity customers under the designation ''electricity from renewable energy''. The reason for this is that electricity sold under the market premium model can no longer justifiably be said to originate from renewable energy. As a consequence, almost all green electricity products sold in Germany carry a foreign green electricity certificate.

  16. Does wind energy mitigate market power in deregulated electricity markets?

    International Nuclear Information System (INIS)

    Ben-Moshe, Ori; Rubin, Ofir D.

    2015-01-01

    A rich body of literature suggests that there is an inverse relationship between wind power penetration rate into the electricity market and electricity prices, but it is unclear whether these observations can be generalized. Therefore, in this paper we seek to analytically characterize market conditions that give rise to this inverse relationship. For this purpose, we expand a recently developed theoretical framework to facilitate flexibility in modeling the structure of the electric industry with respect to the degree of market concentration and diversification in the ownership of wind power capacity. The analytical results and their attendant numerical illustrations indicate that the introduction of wind energy into the market does not always depress electricity prices. Such a drop in electricity prices is likely to occur when the number of firms is large enough or the ownership of wind energy is sufficiently diversified, or most often a combination of the two. Importantly, our study defines the circumstances in which the question of which type of firm invests in wind power capacity is crucial for market prices. - Highlights: • Studies show that electricity prices decrease with increased wind power capacity. • We investigate market conditions that give rise to this inverse relationship. • Average prices for wind energy are systematically lower than average market prices. • Conventional generation firms may increase market power by investing in wind farms. • Energy policy should seek to diversify the ownership of wind power capacity

  17. Measuring market performance in restructured electricity markets: An empirical analysis of the PJM energy market

    Science.gov (United States)

    Tucker, Russell Jay

    2002-09-01

    Today the electric industry in the U.S. is transitioning to competitive markets for wholesale electricity. Independent system operators (ISOs) now manage broad regional markets for electrical energy in several areas of the U.S. A recent rulemaking by the Federal Energy Regulatory Commission (FERC) encourages the development of regional transmission organizations (RTOs) and restructured competitive wholesale electricity markets nationwide. To date, the transition to competitive wholesale markets has not been easy. The increased reliance on market forces coupled with unusually high electricity demand for some periods have created conditions amenable to market power abuse in many regions throughout the U.S. In the summer of 1999, hot and humid summer conditions in Pennsylvania, New Jersey, Maryland, Delaware, and the District of Columbia pushed peak demand in the PJM Interconnection to record levels. These demand conditions coincided with the introduction of market-based pricing in the wholesale electricity market. Prices for electricity increased on average by 55 percent, and reached the $1,000/MWh range. This study examines the extent to which generator market power raised prices above competitive levels in the PJM Interconnection during the summer of 1999. It simulates hourly market-clearing prices assuming competitive market behavior and compares these prices with observed market prices in computing price markups over the April 1-August 31, 1999 period. The results of the simulation analysis are supported with an examination of actual generator bid data of incumbent generators. Price markups averaged 14.7 percent above expected marginal cost over the 5-month period for all non-transmission-constrained hours. The evidence presented suggests that the June and July monthly markups were strongly influenced by generator market power as price inelastic peak demand approached the electricity generation capacity constraint of the market. While this analysis of the

  18. Hong Kong's electricity market beyond 2008

    International Nuclear Information System (INIS)

    Lam, Pun Lee

    2004-01-01

    In Hong Kong, electricity is supplied by two private utilities: Hongkong Electric and CLP Power (CLP). Both are regulated under the Scheme of Control (SOC). The SOC is a formal, long-term regulatory contract of 15 years, signed between a private firm and the Hong Kong Government. Under the SOC, the two electric utilities are subject to both rate-of-return control and price control. The current scheme will expire by 2008. In this paper, we propose a gradual and cautious approach to the introduction of market reform into the electricity industry in Hong Kong. For regulated markets, the government should consider replacing the SOC with performance-based regulation for wire businesses and the non-contestable market. For competitive markets, the government should consider introducing competitive tendering for new sources in the generation market and liberalising the supply market in phases. (author)

  19. Hong Kong's electricity market beyond 2008

    International Nuclear Information System (INIS)

    Lam, P.-L.

    2004-01-01

    In Hong Kong, electricity is supplied by two private utilities: Hongkong Electric and CLP Power (CLP). Both are regulated under the Scheme of Control (SOC). The SOC is a formal, long-term regulatory contract of 15 years, signed between a private firm and the Hong Kong Government. Under the SOC, the two electric utilities are subject to both rate-of-return control and price control. The current scheme will expire by 2008. In this paper, we propose a gradual and cautious approach to the introduction of market reform into the electricity industry in Hong Kong. For regulated markets, the government should consider replacing the SOC with performance-based regulation for wire businesses and the non-contestable market. For competitive markets, the government should consider introducing competitive tendering for new sources in the generation market and liberalising the supply market in phases

  20. Integrating gas and electric markets and regulation

    International Nuclear Information System (INIS)

    Whitmore, C.S.

    1998-01-01

    The issues determining what energy companies must do to compete in an increasingly competitive energy market and what regulators must do to ensure fairness in competition were discussed. The similarities of gas and electric markets, and the factors driving their integration were highlighted. The importance of communications and customer service in the energy market and the nature of market power in the gas and electric industries was described. Three reasons were given why gas/electric mergers will be beneficial: (1) operating efficiency, (2) applying gas experience to electric markets, and (3) opportunity to exercise market power. Potential regulatory problems were also reviewed

  1. Participation of an Energy Hub in Electricity and Heat Distribution Markets: An MPEC Approach

    DEFF Research Database (Denmark)

    Li, Rui; Wu, Qiuwei; Wei, Wei

    2018-01-01

    and thorough mathematical tool for studying the integrated energy system from a deregulated market perspective. A mathematic program with equilibrium constraints (MPEC) model is proposed to study the strategic behaviors of a profit-driven energy hub in the electricity market and heating market under...... the background of energy system integration. In the upper level, the EH submits bids of prices and quantities to a distribution power market and a heating market; in the lower level, the two markets are cleared and energy contracts between the EH and two energy markets are determined. Network constraints...... of physical systems are explicitly represented by an optimal power flow problem and an optimal thermal flow problem. The proposed MPEC formulation is approximated by a mixed-integer linear program via performing integer disjunctions on the complementarity and slackness conditions and binary expansion...

  2. Electricity and gas market observatory. 2. Quarter 2007

    International Nuclear Information System (INIS)

    2007-01-01

    The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). The present observatory is dedicated only to eligible customers before 1 July 2007, i.e. non-residential customers. Statistics related to residential customers will be published in the next observatory (1 December 2007). Content: A - The electricity market: The retail electricity market (Introduction, Non-residential customer segments and their respective weights, Status at July 1, 2007, Dynamic analysis: 2. Quarter 2007); The wholesale electricity market (Introduction, Wholesale market activity in France, Wholesale market activity in France, Prices on the French wholesale market and European comparison, Import and export volumes, Concentration of the French electricity market, Striking fact of the second quarter 2007); B - The gas market: The retail gas market (Introduction, The non-residential customer segments and their respective weights, Status at July 1, 2007); The wholesale gas market (Gas pricing and gas markets in Europe, The wholesale market in France); C - Appendices: Electricity and gas market observatories combined glossary, Specific electricity market observatory glossary, Specific gas market observatory glossary

  3. Optimal Charging of Electric Vehicles with Trading on the Intraday Electricity Market

    Directory of Open Access Journals (Sweden)

    Ilham Naharudinsyah

    2018-06-01

    Full Text Available Trading on the energy market is a possible way to reduce the electricity costs of charging electric vehicles at public charging stations. In many European countries, it is possible to trade electricity until shortly before the period of delivery on so called intraday electricity markets. In the present work, the potential for reducing the electricity costs by trading on the intraday market is investigated using the example of the German market. Based on simulations, the authors reveal that by optimizing the charging schedule together with the trading on the intraday electricity market, the costs can be reduced by around 8% compared to purchasing all the required energy from the energy supplier. By allowing the charging station operator to resell the energy to the intraday electricity market, an additional cost reduction of around 1% can be achieved. Besides the potential cost savings, the impacts of the trading unit and of the lead time of the intraday electricity market on the costs are investigated. The authors reveal that the achievable electricity costs can be strongly affected by the lead time, while the trading unit has only a minor effect on the costs.

  4. Design of the incentive mechanism in electricity auction market based on the signaling game theory

    International Nuclear Information System (INIS)

    Liu, Zhen; Zhang, Xiliang; Lieu, Jenny

    2010-01-01

    At present, designing a proper bidding mechanism to decrease the generators' market power is considered to be one of the key approaches to deepen the reform of the electricity market. Based on the signaling game theory, the paper analyzes the main electricity bidding mechanisms in the electricity auction markets and considers the degree of information disturbance as an important factor for evaluating bidding mechanisms. Under the above studies, an incentive electricity bidding mechanism defined as the Generator Semi-randomized Matching (GSM) mechanism is proposed. In order to verify the new bidding mechanism, this paper uses the Swarm platform to develop a simulation model based on the multi-agents. In the simulation model, the generators and purchasers use the partly superior study strategy to adjust their price and their electricity quantity. Then, the paper examines a simulation experiment of the GSM bidding mechanism and compares it to a simulation of the High-Low Matching (HLM) bidding mechanism. According to the simulation results, several conclusions can be drawn when comparing the proposed GSM bidding mechanism to the equilibrium state of HLM: the clearing price decreases, the total transaction volume increases, the profits of electricity generators decreases, and the overall benefits of purchasers increases. Index Terms - signaling game; semi-randomized matching; high-low match. (author)

  5. Power generation investment in electricity markets

    International Nuclear Information System (INIS)

    2003-01-01

    Most IEA countries are liberalizing their electricity markets, shifting the responsibility for financing new investment in power generation to private investors. No longer able to automatically pass on costs to consumers, and with future prices of electricity uncertain, investors face a much riskier environment for investment in electricity infrastructure. This report looks at how investors have responded to the need to internalize investment risk in power generation. While capital and total costs remain the parameters shaping investment choices, the value of technologies which can be installed quickly and operated flexibly is increasingly appreciated. Investors are also managing risk by greater use of contracting, by acquiring retail businesses, and through mergers with natural gas suppliers. While liberalization was supposed to limit government intervention in the electricity market, volatile electricity prices have put pressure on governments to intervene and limit such prices. This study looks at several cases of volatile prices in IEA countries' electricity markets, and finds that while market prices can be a sufficient incentive for new investment in peak capacity, government intervention into the market to limit prices may undermine such investment

  6. The Renewables Influence on Market Splitting: the Iberian Spot Electricity Market

    OpenAIRE

    Nuno Carvalho Figueiredo; Patrícia Pereira da Silva; Pedro Cerqueira

    2014-01-01

    This paper aims to assess the influence of wind power generation on the market splitting behaviour of the Iberian electricity spot markets. We use logit models to express the probability response for market splitting of day-ahead spot electricity prices together with explanatory variables like, wind speed, available transmission capacity and electricity demand. The results show that the probability of market splitting increases with the increase of wind power generation. The European intercon...

  7. The economics of electricity markets

    CERN Document Server

    Biggar, Darryl R

    2014-01-01

    With the transition to liberalized electricity markets in many countries, the shift to more environmentally sustainable forms of power generation and increasing penetration of electric vehicles and smart appliances, a fundamental understanding of the economic principles underpinning the electricity industry is vital. Using clarity and precision, the authors successfully explain economic theory of all liberalized electricity market types from a cross-disciplinary engineering and policy perspective. No prior engineering knowledge or economics expertise is assumed in introducing key ideas such as nodal pricing, optimal dispatch and efficient pricing or in extending those models to areas including investment, risk management and the handling of contingencies. Key features: Comprehensively covers the principles of all liberalized electricity market types, including the US, Europe, New Zealand and Australia. Provides up to date coverage of research and policy iss es, including design of financial transmission rig...

  8. Flexibility as a market requirement - The adaptation of the structure and operations of electricity markets to the production of renewable energies

    International Nuclear Information System (INIS)

    Finon, Dominique

    2014-01-01

    Renewable energies are earmarked to take up a very significant share in the output of some of Europe's electricity Systems. The variability of their contribution makes the maintenance of the system's physical equilibrium a veritable challenge, once the share reaches a certain level. Apart from the necessary technical improvements, the transformation of the System first and foremost requires upgrading the way the different energy markets function. (author)

  9. Strategy of investment in electricity sources--Market value of a power plant and the electricity market

    Science.gov (United States)

    Bartnik, R.; Hnydiuk-Stefan, A.; Buryn, Z.

    2017-11-01

    This paper reports the results of the investment strategy analysis in different electricity sources. New methodology and theory of calculating the market value of the power plant and value of the electricity market supplied by it are presented. The financial gain forms the most important criteria in the assessment of an investment by an investor. An investment strategy has to involve a careful analysis of each considered project in order that the right decision and selection will be made while various components of the projects will be considered. The latter primarily includes the aspects of risk and uncertainty. Profitability of an investment in the electricity sources (as well as others) is offered by the measures applicable for the assessment of the economic effectiveness of an investment based on calculations e.g. power plant market value and the value of the electricity that is supplied by a power plant. The values of such measures decide on an investment strategy in the energy sources. This paper contains analysis of exemplary calculations results of power plant market value and the electricity market value supplied by it.

  10. The restructuring of the Ontario electricity market

    International Nuclear Information System (INIS)

    Doucet, J.A.

    1999-01-01

    A summary of the current status of the deregulation of the electricity market in Ontario was presented. To follow global deregulation trends, the Ontario Government has embarked on a considerable restructuring of the Ontario electricity market. The monopoly position of Ontario Hydro has been removed by restructuring the provincial utility into two separate companies, GENCO and SERVCO, which will be responsible for the generation and transmission and distribution of electricity, respectively. Other mechanisms put in place to favour a free and competitive market for electricity in the province, such as the arrival on the market of other electricity producers, and the establishment of the independent market operator, are also discussed. 2 tabs

  11. Equilibrium in Securities Markets with Heterogeneous Investors and Unspanned Income Risk

    DEFF Research Database (Denmark)

    Christensen, Peter Ove; Larsen, Kasper; Munk, Claus

    -free rate (and the expected stock return) is lower in the economy with unspanned income risk due to an increased demand for precautionary savings. The reduction in the risk-free rate is highest when the more risk-averse investors face the largest unspanned income risk. In numerical examples with reasonable......We provide the first closed-form solution for the equilibrium risk-free rate and the equilibrium stock price in a continuous-time economy with heterogeneous investor preferences and unspanned income risk. We show that lowering the fraction of income risk spanned by the market produces a lower...... equilibrium risk-free rate and a lower stock market Sharpe ratio, partly due to changes in the aggregate consumption dynamics. If we fix the aggregate consumption dynamics, the Sharpe ratio is the same as in an otherwise identical representative agent economy in which all risks are spanned, whereas the risk...

  12. Financial markets theory equilibrium, efficiency and information

    CERN Document Server

    Barucci, Emilio

    2017-01-01

    This work, now in a thoroughly revised second edition, presents the economic foundations of financial markets theory from a mathematically rigorous standpoint and offers a self-contained critical discussion based on empirical results. It is the only textbook on the subject to include more than two hundred exercises, with detailed solutions to selected exercises. Financial Markets Theory covers classical asset pricing theory in great detail, including utility theory, equilibrium theory, portfolio selection, mean-variance portfolio theory, CAPM, CCAPM, APT, and the Modigliani-Miller theorem. Starting from an analysis of the empirical evidence on the theory, the authors provide a discussion of the relevant literature, pointing out the main advances in classical asset pricing theory and the new approaches designed to address asset pricing puzzles and open problems (e.g., behavioral finance). Later chapters in the book contain more advanced material, including on the role of information in financial markets, non-c...

  13. Assessing the efficiency of US electricity markets

    International Nuclear Information System (INIS)

    Arciniegas, I.; Barrett, C.; Marathe, A.

    2003-01-01

    The recent California's energy crisis has raised doubts about the benefits of energy deregulation. While it is true that the California electricity market is in turmoil, other electricity markets like the Pennsylvania-NewJersey-Maryland (PJM) are doing fine. This paper assesses the mark of efficiency reached by the electricity markets in California, New York, and PJM. It also compares the degree of efficiency across markets (forward vs. real time) and across time. No significant differences between the California and PJM electricity markets were discovered in the year of California's energy crisis (2000) using the co-integration tests. This research suggests that differences in price behavior between these two markets during 2000 did not arise from differences in efficiency. According to our analysis and measures of efficiency, PJM and California electricity markets are more efficient than the New York market. Also, as these markets become more mature over time, their efficiency level goes up. We also found evidence that a multi-settlement scheduling system leads to higher efficiency. (author)

  14. Dynamical behaviors of inter-out-of-equilibrium state intervals in Korean futures exchange markets

    Science.gov (United States)

    Lim, Gyuchang; Kim, SooYong; Kim, Kyungsik; Lee, Dong-In; Scalas, Enrico

    2008-05-01

    A recently discovered feature of financial markets, the two-phase phenomenon, is utilized to categorize a financial time series into two phases, namely equilibrium and out-of-equilibrium states. For out-of-equilibrium states, we analyze the time intervals at which the state is revisited. The power-law distribution of inter-out-of-equilibrium state intervals is shown and we present an analogy with discrete-time heat bath dynamics, similar to random Ising systems. In the mean-field approximation, this model reduces to a one-dimensional multiplicative process. By varying global and local model parameters, the relevance between volatilities in financial markets and the interaction strengths between agents in the Ising model are investigated and discussed.

  15. New Brunswick electricity market rules : summary

    International Nuclear Information System (INIS)

    2004-02-01

    The electricity market rules for New Brunswick were reviewed with particular reference to two broad classifications. The first classification is based on the roles and responsibilities of the system operator (SO) in facilitating the Bilateral Contract market, as well as the role of market participants in participating in the Bilateral Contract market. The second classification is based on the roles and responsibilities of each of the SO, market participants and transmitters in maintaining the reliability of the integrated electricity system and ensuring a secure supply of electricity for consumers in New Brunswick. The market rules consist of 10 chapters entitled: (1) introduction to the market rules and administrative rules of general application, (2) market participation and the use of the SO-controlled grid, (3) market administration, (4) technical and connection requirements, testing and commissioning, (5) system reliability, (6) operational requirements, (7) settlement, (8) connection of new or modified facilities, (9) transmission system planning, investment and operation, and (10) definitions and interpretation

  16. A supply function model for representing the strategic bidding of the producers in constrained electricity markets

    International Nuclear Information System (INIS)

    Bompard, Ettore; Napoli, Roberto; Lu, Wene; Jiang, Xiuchen

    2010-01-01

    The modeling of the bidding behaviour of the producer is a key-point in the modeling and simulation of the competitive electricity markets. In our paper, the linear supply function model is applied so as to find the Supply Function Equilibrium analytically. It also proposed a new and efficient approach to find SFEs for the network constrained electricity markets by finding the best slope of the supply function with the help of changing the intercept, and the method can be applied on the large systems. The approach proposed is applied to study IEEE-118 bus test systems and the comparison between bidding slope and bidding intercept is presented, as well, with reference to the test system. (author)

  17. 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)

  18. 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)

  19. A study on the deregulation of the Finnish electricity markets

    International Nuclear Information System (INIS)

    Kopsakangas-Savolainen, M.

    2002-01-01

    distribution price equal to the long-run marginal costs plus mark-up determined by price elasticity of demand. The integrated distribution unit has to take also the impacts on the supply unit into account when setting the distribution price. Chapter four considers the consequences of deregulation to the wholesale price of electricity and the market structure of the industry. It is interesting to question whether deregulation in some circumstances may lead to higher prices instead of lower ones. The relationship between the Cournot equilibrium on the one hand and Bertrand equilibrium on the other will be quantitatively explored. The results indicate that deregulation can result in a significant price increase and output decrease in inland if there occurs Cournot type of competition. In chapter five we consider alternative pricing policies for a regulated distribution company and empirically analyse is it possible to achieve welfare improvements by changing the prevalent price structure to the more efficient one. We use four different pricing methods which are marginal cost pricing, fully distributed cost pricing (FDC), Ramsey pricing and optimal two-part tariffs. The results indicate that it is possible to improve welfare quite markedly by switching from the existing pricing principles to more efficient ones. The resulting welfare is highest if we use the first best prices based on marginal costs or optimal two-part tariffs. (orig.)

  20. Balancing renewable on intra day electricity markets

    International Nuclear Information System (INIS)

    Sokol, R.; Bems, J.

    2012-01-01

    Intra day electricity markets contribute to facilitate transition from conventional sources to renewable which need to be balanced on real-time basic due to the unpredictable nature of weather. This paper describes the way from regional electricity markets to a single pan-european market model which is target model of the European Commission. Single liquid intra day electricity market where market participants can balance their portfolios is prerequisite to a full utilisation of renewable power sources and a solution for some problems experienced by TSOs with loop and parallel flows from neighbouring countries. Integrated German and French intra day electricity market which uses Flexible Intra day Trading Scheme is described in this paper as a market which could be extended further to the CEE region with very poor liquidity of its local intra day markets. (Authors)

  1. General stochastic variational formulation for the oligopolistic market equilibrium problem with excesses

    Science.gov (United States)

    Barbagallo, Annamaria; Di Meglio, Guglielmo; Mauro, Paolo

    2017-07-01

    The aim of the paper is to study, in a Hilbert space setting, a general random oligopolistic market equilibrium problem in presence of both production and demand excesses and to characterize the random Cournot-Nash equilibrium principle by means of a stochastic variational inequality. Some existence results are presented.

  2. Analysis of the green certificate market

    International Nuclear Information System (INIS)

    Storeboe, Inger Oeydis

    2001-04-01

    This report studies the advantages and disadvantages of a separate financial market for the environmental advantages in the production of electricity from renewable energy sources. This market solution is evaluated against other financial systems used to promote the production of green electricity. By starting from a general equilibrium model for the green certificate market, the report discusses how the adaptation in the certificate market is influenced by changes in the market conditions. The certificate market is combined with a quota market for carbon dioxide, with and without international trade with electricity and certificate and market power in the production of electricity from renewable energy sources

  3. The electricity market 2002

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2002-10-01

    The purpose of the 'Electricity market 2002' publication is to meet the need for generalized and readily accessible information on the conditions on the Nordic market. Iceland is not included in the description. The publication also includes summaries of information from recent years concerning electricity generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective, trade in electricity in the Nordic countries and in Northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment. The publication contains data on electricity generation and use during the past years, structure of the electricity market, trade in electricity in the Nordic countries and northern Europe, electricity prices in the Nordic countries and other countries as well as impact of electricity generation system on the environment. The market price of electricity is affected by a number of factors, including fuel prices, availability of water, and the power and energy balances of the various countries. The availability of water in Norway and Sweden has been very good in recent years, which has had a major influence on the price. 1996 was a dry year, which led to a high system price on Nord Pool. The price of electricity then dropped and has remained at a relatively low level up to the year 2001. The price of electricity rose during the spring of 2001 and remained at a higher level also during the summer months. The main reason was that the availability of water was lower than normal in Norway during the early part of the year. This created a higher demand for imported electricity in Norway and caused some apprehension that the year would be dry. The total price of electricity to the end users has not followed the system price development. The total cost of electricity to the end consumers consists of three items, i.e. the price of electricity, the network

  4. Development needs of the electricity market. Final report by the working group on the five-year revision of the electricity market act

    International Nuclear Information System (INIS)

    2001-01-01

    The opening of the Finnish electricity market was started by the Electricity Market Act that entered into force in 1995. The Act abolished the obstructions to competition in electricity production, foreign trade and sales. To guarantee the functioning of the electricity market in practice, the electricity network operators were obliged to gradually open up their networks for the use of other parties operating on the market. Finland has liberated her electricity market in the forefront and ahead of the prescribed time in relation to the obligations laid down in the EC Directive concerning common rules for the internal market in electricity. The working group has studied the development needs of the electricity market in the light of experience gained during the validity of the Electricity Market Act. As a general conclusion, the working group states that the Finnish electricity market is functioning in an appropriate manner and that there is no reason to essentially change the model chosen for the opening of the electricity market. The working group makes several proposals for actions and recommendations for improving the efficiency of the electricity market. According to the view of the working group, electricity users, production plants and distribution network operators should be authorised to construct a 110-440 kV connection line of their own to a 110 kV network or grid. Following the working group's proposal, the regulation concerning electricity retailers would be extended over to electricity vendors operating as retailers in a real-estate network. To guarantee the functioning of competition on the small-scale consumers' electricity market, the working group suggests that the customers would be entitled during one year to one change of vendor for which no separate fee would be collected. The working group proposes that construction authorisation conditions pertaining to border lines should be specified so that one condition for granting an authorisation would

  5. Electricity marketing and retailing

    International Nuclear Information System (INIS)

    Hanlon, C.

    2001-01-01

    ECNG Inc. is a full service provider of independent and objective energy advice and management services to industrial, commercial and institutional end-users of all forms of energy. ECNG manages 10 per cent of the Ontario gas market and expects a 10 per cent share of electricity (14 TWh). ECNG has a balanced portfolio with expertise in both petroleum and electricity sectors. The company has also dealt extensively with retailers, marketers, wholesalers and suppliers on issues regarding deregulation

  6. Analysis of competition and market power in the wholesale electricity market in India

    International Nuclear Information System (INIS)

    Shukla, Umesh Kumar; Thampy, Ashok

    2011-01-01

    The electricity reforms were initiated in India with the objective of promoting competition in the electricity market. In order to promote competition, the Electricity Act 2003 was enacted and various policy initiatives were taken by the Government of India. Central Electricity Regulatory Commission (CERC) also facilitated competition through the regulatory framework of availability based tariff, Indian Electricity Grid Code, open access in inter-state transmission, inter-state trading and power exchanges. Despite these initiatives, electricity prices increased in the Wholesale Electricity Market in India (WEMI). This paper analyses the market structure and competitiveness in the WEMI. There are, of course, various potential reasons for the rise in the electricity price. This paper seeks to investigate, if market power was one of the reasons for increase in market prices. Concentration ratio, Herfindahl-Hirschman index, Supply Margin Assessment, and Residual Supply Index have been used to measure market power. This paper also uses the price-cost mark-up to examine, if exercise of market power led to higher margins. The analysis suggests that market power of firms may be part of the reason for the increase in electricity prices in WEMI. The study suggests various measures to increase competition in the WEMI.

  7. Electricity market price volatility: The case of Ontario

    International Nuclear Information System (INIS)

    Zareipour, Hamidreza; Bhattacharya, Kankar; Canizares, Claudio A.

    2007-01-01

    Price volatility analysis has been reported in the literature for most competitive electricity markets around the world. However, no studies have been published yet that quantify price volatility in the Ontario electricity market, which is the focus of the present paper. In this paper, a comparative volatility analysis is conducted for the Ontario market and its neighboring electricity markets. Volatility indices are developed based on historical volatility and price velocity concepts, previously applied to other electricity market prices, and employed in the present work. The analysis is carried out in two scenarios: in the first scenario, the volatility indices are determined for the entire price time series. In the second scenario, the price time series are broken up into 24 time series for each of the 24 h and volatility indices are calculated for each specific hour separately. The volatility indices are also applied to the locational marginal prices of several pricing points in the New England, New York, and PJM electricity markets. The outcomes reveal that price volatility is significantly higher in Ontario than the three studied neighboring electricity markets. Furthermore, comparison of the results of this study with similar findings previously published for 15 other electricity markets demonstrates that the Ontario electricity market is one of the most volatile electricity markets world-wide. This high volatility is argued to be associated with the fact that Ontario is a single-settlement, real-time market

  8. Determining market boundaries in the electricity sector

    International Nuclear Information System (INIS)

    Godde, Anne

    2013-01-01

    The purpose of the present study was to develop a method of determining market boundaries in preparation of identifying all the competitive forces which a company in the electricity sector must address and deciding on this basis whether it has a dominant position in the market. The study focused in particular on current developments in the German electricity sector, this being the only way to permit a demarcation that accurately reflects the true economic situation. First the question was addressed whether a determination of market boundaries is at all necessary for performing a competitive analysis and in what specific constellations they could play a role. Giving due consideration to the special features of the electricity sector the most preferable market demarcation methods were applied to individual areas of the electricity sector that are of competitive relevance. Efforts were directed at arriving at market boundaries most conducive to the goal of identifying those competitive forces which a company in the electricity sector must address. For this purpose a critical assessment was undertaken of established market demarcation practices in Europe and Germany in order to determine whether ''classical'' market demarcation methods could be applied or whether modifications were needed on account of special features of market structure. The author also describes and discusses alternatives to the established market demarcation methods. She also elucidates methods of determining the boundaries of markets that have emerged as a result of recent developments in the electricity sector, for example through the growth of electricity production from renewable resources, or which are still in the process of formation.

  9. 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

  10. Electricity market design and risk management

    International Nuclear Information System (INIS)

    Boschi, Federico; Cervigni, Guido

    2005-01-01

    We show that each wholesale electricity market design trades-off between efficiency and liquidity. Efficiency requires that the product traded in the wholesale market closely reflect the physical features of electricity. Liquidity requires standardization of the products that ore traded on the wholesale market. We stress that Iiquidity comes at a cost since an excessive degree of standardization may lead to significant inefficiencies and forge wealth transfers among market participants [it

  11. Electricity market design for the future

    OpenAIRE

    robinson, david; Keay, Malcolm

    2017-01-01

    This paper explains why current electricity markets are not fit for purpose and propose a new market design. Electricity markets operating today were designed for the technical and economic conditions of the 1990's. These conditions have changed substantially, especially with increased penetration of intermittent renewables and the growing potential for distributed energy resources and consumer involvement. Today's markets are incompatible with these trends. They do not provide h...

  12. Market power in interactive environmental and energy markets: the case of green certificates

    International Nuclear Information System (INIS)

    Amundsen, Eirik S.; Nese, Gjermund

    2004-01-01

    Markets for environmental externalities are typically closely related to the markets causing such externalities, whereupon strategic interaction may result. Along these lines, the market for Green Certificates is strongly interwoven in the electricity market as the producers of green electricity are also the suppliers of Green Certificates. In this paper, we formulate an analytic equilibrium model for simultaneously functioning electricity and Green Certificate markets, and focus on the role of market power. We consider two versions of a Nash-Cournot game: a standard Nash-Cournot game where the players treat the market for Green Certificates and the electricity market as separate markets; and a Nash-Cournot game with endogenous treatment of the interaction between the electricity and Green Certificate markets with conjectured price responses. One result is that a certificate system faced with market power may collapse into a system of per unit subsidies, as the producers involved start to game on the joint functioning of markets. (author)

  13. Application of a Gradient Descent Continuous Actor-Critic Algorithm for Double-Side Day-Ahead Electricity Market Modeling

    Directory of Open Access Journals (Sweden)

    Huiru Zhao

    2016-09-01

    Full Text Available An important goal of China’s electric power system reform is to create a double-side day-ahead wholesale electricity market in the future, where the suppliers (represented by GenCOs and demanders (represented by DisCOs compete simultaneously with each other in one market. Therefore, modeling and simulating the dynamic bidding process and the equilibrium in the double-side day-ahead electricity market scientifically is not only important to some developed countries, but also to China to provide a bidding decision-making tool to help GenCOs and DisCOs obtain more profits in market competition. Meanwhile, it can also provide an economic analysis tool to help government officials design the proper market mechanisms and policies. The traditional dynamic game model and table-based reinforcement learning algorithm have already been employed in the day-ahead electricity market modeling. However, those models are based on some assumptions, such as taking the probability distribution function of market clearing price (MCP and each rival’s bidding strategy as common knowledge (in dynamic game market models, and assuming the discrete state and action sets of every agent (in table-based reinforcement learning market models, which are no longer applicable in a realistic situation. In this paper, a modified reinforcement learning method, called gradient descent continuous Actor-Critic (GDCAC algorithm was employed in the double-side day-ahead electricity market modeling and simulation. This algorithm can not only get rid of the abovementioned unrealistic assumptions, but also cope with the Markov decision-making process with continuous state and action sets just like the real electricity market. Meanwhile, the time complexity of our proposed model is only O(n. The simulation result of employing the proposed model in the double-side day-ahead electricity market shows the superiority of our approach in terms of participant’s profit or social welfare

  14. Forecasting the Electricity Demand and Market Shares in Retail Electricity Market Based on System Dynamics and Markov Chain

    OpenAIRE

    Qingyou Yan; Chao Qin; Mingjian Nie; Le Yang

    2018-01-01

    Due to the deregulation of retail electricity market, consumers can choose retail electric suppliers freely, and market entities are facing fierce competition because of the increasing number of new entrants. Under these circumstances, forecasting the changes in all market entities, when market share stabilized, is important for suppliers making marketing decisions. In this paper, a market share forecasting model was established based on Markov chain, and a system dynamics model was construct...

  15. Portfolio optimization in electricity markets

    International Nuclear Information System (INIS)

    Liu, Min; Wu, Felix F.

    2007-01-01

    In a competitive electricity market, Generation companies (Gencos) face price risk and delivery risk that affect their profitability. Risk management is an important and essential part in the Genco's decision making. In this paper, risk management through diversification is considered. The problem of energy allocation between spot markets and bilateral contracts is formulated as a general portfolio optimization problem with a risk-free asset and n risky assets. Historical data of the PJM electricity market are used to demonstrate the approach. (author)

  16. E-laboratories : agent-based modeling of electricity markets

    International Nuclear Information System (INIS)

    North, M.; Conzelmann, G.; Koritarov, V.; Macal, C.; Thimmapuram, P.; Veselka, T.

    2002-01-01

    Electricity markets are complex adaptive systems that operate under a wide range of rules that span a variety of time scales. These rules are imposed both from above by society and below by physics. Many electricity markets are undergoing or are about to undergo a transition from centrally regulated systems to decentralized markets. Furthermore, several electricity markets have recently undergone this transition with extremely unsatisfactory results, most notably in California. These high stakes transitions require the introduction of largely untested regulatory structures. Suitable laboratories that can be used to test regulatory structures before they are applied to real systems are needed. Agent-based models can provide such electronic laboratories or ''e-laboratories.'' To better understand the requirements of an electricity market e-laboratory, a live electricity market simulation was created. This experience helped to shape the development of the Electricity Market Complex Adaptive Systems (EMCAS) model. To explore EMCAS' potential as an e-laboratory, several variations of the live simulation were created. These variations probed the possible effects of changing power plant outages and price setting rules on electricity market prices

  17. Towards a regional electricity market in Southeast Europe

    International Nuclear Information System (INIS)

    Ichord, R.F. Jr.

    2002-01-01

    Historical evolution of the region's electric power policy is overviewed. The regional characteristics of Southern Europe's electric power market are summarized. The reform indicators of the region's electricity markets are discussed. The status of privatization is presented. Factors in developing regional electricity market are considered. (R.P.)

  18. Electric glass capturing markets

    Energy Technology Data Exchange (ETDEWEB)

    Wikman, K.; Wikstroem, T.

    1996-11-01

    Electric glass has found its place on the construction market. In public buildings, electrically heatable windows are becoming the leading option for large glass walls. Studies on detached houses, both new and renovated, show that floor heating combined with electrically heatable windowpanes is the best choice with respect to resident`s comfort. (orig.)

  19. Using Intelligent System Approaches for Simulation of Electricity Markets

    Science.gov (United States)

    Hamagami, Tomoki

    Significances and approaches of applying intelligent systems to artificial electricity market is discussed. In recent years, with the moving into restructuring of electric system in Japan, the deregulation for the electric market is progressing. The most major change of the market is a founding of JEPX (Japan Electric Power eXchange.) which is expected to help lower power bills through effective use of surplus electricity. The electricity market designates exchange of electric power between electric power suppliers (supplier agents) themselves. In the market, the goal of each supplier agents is to maximize its revenue for the entire trading period, and shows complex behavior, which can model by a multiagent platform. Using the multiagent simulations which have been studied as “artificial market" helps to predict the spot prices, to plan investments, and to discuss the rules of market. Moreover, intelligent system approaches provide for constructing more reasonable policies of each agents. This article, first, makes a brief summary of the electricity market in Japan and the studies of artificial markets. Then, a survey of tipical studies of artificial electricity market is listed. Through these topics, the future vision is presented for the studies.

  20. Electric power and gas markets

    International Nuclear Information System (INIS)

    2001-01-01

    These two days organized by EFE in Paris, dealt with the european market of the gas and the electrical power. The first day developed the actual situation and the tendencies. The french market deregulation, the possibility of a united market and the energy transportation sector are discussed. The second day dealt with the new commercial technologies, the convergence of Gas and Electricity and the competing in a change world, the opportunities of the NTIC (new technologies of the information and communication). (A.L.B.)

  1. The European green electricity markets in 2010

    International Nuclear Information System (INIS)

    Meibom, Peter; Skytte, Klaus

    2003-01-01

    The market shares of different electricity producing renewable energy technologies in the green electricity markets in EU, and the size and prices obtained on these markets depends strongly on the market designs and support policies governing the development of these markets. These issues have been analysed with the use of the ADMIRE REBUS model. Costs data for all significant electricity producing renewable energy technologies and data on the sizes of the renewable energy resources in the EU are combined with different national development of the support policies for green electricity in the different EU countries towards a common EU market in 2010. The model simulates the operation of each green electricity market in EU and the interaction between the markets. Model results show that in a harmonized EU wide tradable green certificate system starting from 2010, i.e. in a system without technology-specific support, wind power will be the most competitive technology, but power plants using different types of biomass will also gain a large share of the market. To reach the indicative EU targets for RES-E production in 2010 a TGC price of 5.6 eurocents is necessary in addition to a physical power price of 2.2 eurocents. (au)

  2. Market Monitor, development of the wholesale trade market of electricity 2006. Results

    International Nuclear Information System (INIS)

    Vermeulen, M.; Mulder, M.; Van den Reek, W.; Thomeer, G.; De Kleijn, M.

    2007-12-01

    The Office of Energy Regulation carries out its legal task by means of a monitor, a practical tool to assess and analyze the wholesale market for electricity. Monitoring of the wholesale electricity market concerns continuous, accurate and structured following of developments in the market. The aim is to identify in time signals from the market that could lead to a decrease of competition and transparency. The starting point of the monitor for the wholesale electricity market is the selection of indicators which give insight in real competition, liquidity and transparency [nl

  3. Electricity markets evolution with the changing generation mix: An empirical analysis based on China 2050 High Renewable Energy Penetration Roadmap

    International Nuclear Information System (INIS)

    Zou, Peng; Chen, Qixin; Yu, Yang; Xia, Qing; Kang, Chongqing

    2017-01-01

    Highlights: • How electricity markets are evolving with the changing generation mix is studied. • China 2050 High Renewable Energy Penetration Roadmap are empirically analysed. • A multi-period Nash-Cournot model is established to study the market equilibrium. • Energy storages are analysed and compared to reveal their impacts on the equilibrium. - Abstract: The power generation mix are significantly changing due to the growth of stricter energy policies. The renewables are increasingly penetrating the power systems and leading to more clean energy and lower energy prices. However, they also require much more flexibilities and ancillary services to handle their uncertainties and variabilities. Thus, the requirements for regulation and reserve services may dramatically increase while the supplies of these services, which are mainly from the traditional thermal plants, remain almost invariant. This changing situation will cause higher regulation and reserve prices and impact the profit models and revenue structures of the traditional plants. How electricity markets are actually evolving with the changing generation mix? Can enough backup power plants be given adequate economic incentives and thus remained with the increasing renewables and the decreasing energy prices and productions? Can de-carbonization be fully performed in power systems? To explicitly answer the question, this paper uses a multi-period Nash-Cournot equilibrium model to formulate the evolution of power markets incorporating different types of generators, including thermal units, hydro units, wind farms, solar stations and energy storage systems. The price changes in the co-optimized energy, regulation and reserve markets, and the profit changes of various generators are studied. And the variabilities and uncertainties of renewable generation sources are considered in dynamically determining the requirements of regulation and reserve services. Based on the China 2050 High Renewable Energy

  4. Economic-efficiency considerations in restructuring electric markets

    Energy Technology Data Exchange (ETDEWEB)

    Hill, L.J.

    1996-12-01

    In response to the Energy Policy Act of 1992 and the Federal Energy Regulatory Commission`s subsequent rulemaking on transmission access, many states are exploring options to restructure their electric industries. In their deliberations on restructuring, policymakers should consider (1) the reliability of the electric system; (2) income-distribution effects on ratepayers and utilities; (3) social consequences such as effects on energy conservation, renewable energy, and the environment; and (4) economic efficiency. We address economic-efficiency considerations in this study. Economic efficiency is important because it is one of the primary reasons that policymakers should consider restructuring in the first place: improving the electric-industry`s efficiency lowers costs and, hence, electric prices. In this study, we look at the sources of (in)efficiency in existing and proposed electric markets with the objective of guiding policymakers to design efficient electric markets. The advantages of a competitive market are well known: it leads to lower costs for the utility, lower prices for consumers, more product choices, better customer service, and often the need for less regulation by federal and state agencies. In the short run, firms who cannot produce at the market-clearing price are forced to leave the industry, ensuring that customers have the lowest price possible. In the long run, competition promotes innovation and lower costs. The physical and institutional characteristics of the U.S. electric industry, however, could be impediments to attaining efficiently run, competitive markets. Because of these characteristics, there are multiple sources of efficiencies and inefficiencies in existing electric markets, and there will be multiple sources in restructured ones. The objective of policymakers should not be to trade one set of inefficiencies in existing electric markets for another set in restructured markets.

  5. Economic-efficiency considerations in restructuring electric markets

    International Nuclear Information System (INIS)

    Hill, L.J.

    1996-12-01

    In response to the Energy Policy Act of 1992 and the Federal Energy Regulatory Commission's subsequent rulemaking on transmission access, many states are exploring options to restructure their electric industries. In their deliberations on restructuring, policymakers should consider (1) the reliability of the electric system; (2) income-distribution effects on ratepayers and utilities; (3) social consequences such as effects on energy conservation, renewable energy, and the environment; and (4) economic efficiency. We address economic-efficiency considerations in this study. Economic efficiency is important because it is one of the primary reasons that policymakers should consider restructuring in the first place: improving the electric-industry's efficiency lowers costs and, hence, electric prices. In this study, we look at the sources of (in)efficiency in existing and proposed electric markets with the objective of guiding policymakers to design efficient electric markets. The advantages of a competitive market are well known: it leads to lower costs for the utility, lower prices for consumers, more product choices, better customer service, and often the need for less regulation by federal and state agencies. In the short run, firms who cannot produce at the market-clearing price are forced to leave the industry, ensuring that customers have the lowest price possible. In the long run, competition promotes innovation and lower costs. The physical and institutional characteristics of the U.S. electric industry, however, could be impediments to attaining efficiently run, competitive markets. Because of these characteristics, there are multiple sources of efficiencies and inefficiencies in existing electric markets, and there will be multiple sources in restructured ones. The objective of policymakers should not be to trade one set of inefficiencies in existing electric markets for another set in restructured markets

  6. Electricity costs in liberalized market

    International Nuclear Information System (INIS)

    Barkans, J.; Junghans, G.

    2006-01-01

    In the liberalized electricity market the flexible demand determines the operation of power plants. Under market conditions the producers are forced to compete, and their power plants are normally loaded in order of increasing prices. The electricity costs consist of fixed and variable components, and the competition among producers simulates minimization of both the components. Considering the fixed costs (including maintenance, depreciation, capital costs and other permanent costs not depending on production) to be known, the total electricity costs in different operating conditions are based on the economic characteristics and the equipment load of a power plant. The paper describes the method for determination of electricity costs for condensing thermal power plants with permanent steam take-off for regeneration purposes and adjustable steam take-off for the needs of local heat energy consumers. The marginal costs for CHP plants are determined considering a number of different steam take-off from a turbine. At the electricity cost determination, auxiliary services also are taken into account. These can be reduced by adjusting the rotational speed of electric motors. The paper also shows how to determine the electricity costs for gas turbines, combined cycle gas turbines, and nuclear power plants. The position of hydro power plants among other PPs in the free market is also analysed. (authors)

  7. Demand Response Within Current Electricity Wholesale Market Design

    OpenAIRE

    Ramos Gutierrez, Ariana Isabel; De Jonghe, Cedric; Six, Daan; Belmans, Ronnie

    2013-01-01

    The introduction of intermittent energy resources calls for the ability to modulate consumption patterns according to electricity availability. This paper provides a brief overview of the main electricity market design characteristics and places demand response within the framework of the existing timeline of market operation. The main differences between electricity markets lie in the price formation mechanisms where some markets pay-as- cleared and some pay- as- bid for the electricity tran...

  8. Integrating Renewables in Electricity Markets

    DEFF Research Database (Denmark)

    Morales González, Juan Miguel; Conejo, Antonio J.; Madsen, Henrik

    in the electricity market. • The development of procedures to enable demand response and to facilitate the integration of stochastic renewable units. This book is written in a modular and tutorial manner and includes many illustrative examples to facilitate its comprehension. It is intended for advanced...... such as: • The modeling and forecasting of stochastic renewable power production. • The characterization of the impact of renewable production on market outcomes. • The clearing of electricity markets with high penetration of stochastic renewable units. • The development of mechanisms to counteract...

  9. Financial risks for green electricity investors and producers in a tradable green certificate market

    International Nuclear Information System (INIS)

    Lemming, Jacob

    2003-01-01

    This paper analyzes financial risks in a market for tradable green certificates (TGC) from two perspectives; existing renewable producers and potential investors in new renewable electricity generation capacity. The equilibrium pricing mechanism for a consumer-based TGC market is described and a market with wind turbines as the sole renewable technology is analyzed. In this framework, TGC prices and fluctuations in production from wind turbines will be negatively correlated and, as a result, TGC price fluctuations can actually help decrease the total financial risk. Based on this recognition, analytical expressions for revenue-variance-minimizing trading strategies are derived and an analysis of the demand and supply for financial hedging is used to show that forward contracts will be traded at a risk premium

  10. Market study on the Mexican market for electrical distribution equipment

    International Nuclear Information System (INIS)

    1991-01-01

    A brief historical survey of the development of the Mexican electric power sector is presented, along with an overview of the state of the Mexican economy since the late 1980s and the present characteristics of the Mexican electricity sector. The Mexican market for electric power generation and distribution equipment is then assessed, from the perspective of Canadian suppliers and manufacturers intending to enter this market. Projected consumption of electrical generation and distribution equipment in Mexico for 1994 is estimated at US$1,035,600,000 ($719.4 million in production, $356.9 million in imports, and $40.7 million in exports). This market increased 12.3% in 1990, and since power demand in Mexico has been growing faster than growth in capacity, it is possible that investments in the electricity sector will grow at faster rates. Items which are traditionally imported include nuclear reactors and related equipment, boilers, turbines, power breakers, valves, coal and ash handling equipment, relays, automatic controls, and chemical treatment equipment. The USA has the greatest share of the import market with 35%, followed by Japan (22%), Switzerland (18%), and Germany (13%). Canadian exports have concentrated on distribution equipment and only totalled $1.7 million in 1990. Electricity is distributed to some 16.6 million users over a national interconnected system having total installed capacity of 30,513 MW in 1991. There are plans to increase capacity by 9.7 GW by 1994 and another 37.4-47.8 GW between 1995 and 2010. Projections of electricity needs by region are listed along with the new power plants targeted for investment. Market liberalization and lowering of tariffs have made the Mexican market more accessible to exporters. 8 tabs

  11. Electricity market design of the future

    International Nuclear Information System (INIS)

    Peek, Markus; Diels, Robert

    2016-01-01

    The transformation of the power generation system, to one in which renewable energies will form a cornerstone, will change the requirements for all market actors. To achieve the goals of the German Energiewende ('energy transition'), greater flexibility in production and consumption is of particular importance. Flexibility enables the cost-effective integration of the fluctuating actual feed-in of renewable energies. On the one hand, the technical options for reducing existing technical inflexibilities are given to a considerable extent. On the other hand, analyses of the transnational compensation effects of load and renewable energy supply (RES) feed-in show that flexibility requirements can be reduced significantly in a common electricity market. Electricity markets in which there is open technological competition are an appropriate instrument for the flexibilization of the power supply system. In the short term, the mechanisms of competitive electricity markets ensure an efficient synchronization of supply and demand. Over the medium and long term, the market creates efficient incentives to adapt the generation system and the behavior of consumers to future needs, resulting from the changes in the residual load structure. But at the same time, in recent years the occurrence of negative electricity prices in situations with significantly positive residual loads show that flexibility restraints exist. The causes of these restraints are at least partly due to the market design or the regulatory framework. On the one hand, there are barriers to market entry and, on the other hand, price signals from the electricity markets do not reach all market actors or reach them distortedly. To enable the cost effective development of the different flexibility options in an open technology competition, restraints resulting from market design and the regulatory framework (e. g. in the framework of grid charges, the market and product design of control power markets

  12. Engineering Electricity Markets for a Decarbonized Energy System

    DEFF Research Database (Denmark)

    Jenle, Rasmus Ploug; Pallesen, Trine

    Decarbonization of the Danish electricity sector has recently been sought achieved through the introduction of a novel retail electricity market, named EcoGrid, designed to create price responsive consumers. By following the market design process undertaken by engineers at the Technical Universit...... of introducing synthetic markets as means of governance.......Decarbonization of the Danish electricity sector has recently been sought achieved through the introduction of a novel retail electricity market, named EcoGrid, designed to create price responsive consumers. By following the market design process undertaken by engineers at the Technical University...... of Denmark, the analysis addresses the question: how do engineers make markets? The answer to this question as presented here is: engineers design control systems. By tracing the origins of EcoGrid, this paper documents the governing of electricity consumers through a ‘synthetic market’, i.e. a market...

  13. Measuring the Effects of Generic Dairy Advertising in a Multi-Market Equilibrium

    OpenAIRE

    Joseph V. Balagtas; Sounghun Kim

    2007-01-01

    We develop a multi-market equilibrium displacement model that allows demand linkages across downstream product markets, and supply linkages through the common use of a raw commodity as the key input. Applying the model to the dairy sector, we find that the effectiveness of producer-funded advertising depends on the demand relationships across dairy product markets (cross-price and cross-advertising elasticities) as well as the reallocation of milk toward the advertised market. We show that th...

  14. Overview of Wholesale Electricity Markets

    Energy Technology Data Exchange (ETDEWEB)

    Milligan, Michael [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Bloom, Aaron P [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Cochran, Jaquelin M [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Townsend, Aaron [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Ela, Erik [Electric Power Research Institute; Botterud, Audun [Argonne National Laboratory; Levin, Todd [Argonne National Laboratory

    2018-02-15

    This chapter provides a comprehensive review of four key electricity markets: energy markets (day-ahead and real-time markets); ancillary service markets; financial transmission rights markets; capacity markets. It also discusses how the outcomes of each of these markets may be impacted by the introduction of high penetrations of variable generation. Furthermore, the chapter examines considerations needed to ensure that wholesale market designs are inclusive of emerging technologies, such as demand response, distributed generation, and distributed storage.

  15. Renewables in Electricity Markets

    DEFF Research Database (Denmark)

    Ordoudis, Christos; Papakonstantinou, Athanasios; Pinson, Pierre

    2014-01-01

    Electricity is nowadays commonly exchanged through electricity markets, designed in a context where dispatchable generators, with non-negligible marginal costs, were dominating. By depending primarily on conventional (fossil, hydro and nuclear) power generation based on marginal pricing...... not designed to take into account the uncertainty brought by the substantial variability and limited predictability associated with stochastic sources, most notably wind power and solar energy. Due to these developments, the need for decision making models able to account for the uncertainty introduced by high...... from renewables, and on the adaption of electricity market designs and power system operations to the aforementioned characteristics of renewables. Additionally, the aim of the research group is supplemented by providing the appropriate frameworks for secure future investments in the field...

  16. Electric Circuit Model Analogy for Equilibrium Lattice Relaxation in Semiconductor Heterostructures

    Science.gov (United States)

    Kujofsa, Tedi; Ayers, John E.

    2018-01-01

    The design and analysis of semiconductor strained-layer device structures require an understanding of the equilibrium profiles of strain and dislocations associated with mismatched epitaxy. Although it has been shown that the equilibrium configuration for a general semiconductor strained-layer structure may be found numerically by energy minimization using an appropriate partitioning of the structure into sublayers, such an approach is computationally intense and non-intuitive. We have therefore developed a simple electric circuit model approach for the equilibrium analysis of these structures. In it, each sublayer of an epitaxial stack may be represented by an analogous circuit configuration involving an independent current source, a resistor, an independent voltage source, and an ideal diode. A multilayered structure may be built up by the connection of the appropriate number of these building blocks, and the node voltages in the analogous electric circuit correspond to the equilibrium strains in the original epitaxial structure. This enables analysis using widely accessible circuit simulators, and an intuitive understanding of electric circuits can easily be extended to the relaxation of strained-layer structures. Furthermore, the electrical circuit model may be extended to continuously-graded epitaxial layers by considering the limit as the individual sublayer thicknesses are diminished to zero. In this paper, we describe the mathematical foundation of the electrical circuit model, demonstrate its application to several representative structures involving In x Ga1- x As strained layers on GaAs (001) substrates, and develop its extension to continuously-graded layers. This extension allows the development of analytical expressions for the strain, misfit dislocation density, critical layer thickness and widths of misfit dislocation free zones for a continuously-graded layer having an arbitrary compositional profile. It is similar to the transition from circuit

  17. Forward and Spot Prices in Multi-Settlement Wholesale Electricity Markets

    Science.gov (United States)

    Larrieu, Jeremy

    In organized wholesale electricity markets, power is sold competitively in a multi-unit multi-settlement single-price auction comprised of a forward and a spot market. This dissertation attempts to understand the structure of the forward premium in these markets, and to identify the factors that may lead forward and spot prices to converge or diverge. These markets are unique in that the forward demand is price-sensitive, while spot residual demand is perfectly inelastic and must be met in full, a crucial design feature the literature often glosses over. An important contribution of this dissertation is the explicit modeling of each market separately in order to understand how generation and load choose to act in each one, and the consequences of these actions on equilibrium prices and quantities given that firms maximize joint profits over both markets. In the first essay, I construct a two-settlement model of electricity prices in which firms that own asymmetric capacity-constrained units facing convex costs compete to meet demand from consumers, first in quantities, then in prices. I show that the forward premium depends on the costliness of spot production relative to firms' ability to exercise market power by setting quantities in the forward market. In the second essay, I test the model from the first essay with unit-level capacity and marginal cost data from the California Independent System Operator (CAISO). I show that the model closely replicates observed price formation in the CAISO. In the third essay, I estimate a time series model of the CAISO forward premium in order to measure the impact that virtual bidding has had on forward and spot price convergence in California between April 2009 and March 2014. I find virtual bidding to have caused forward and spot prices to diverge due to the large number of market participants looking to hedge against - or speculate on - the occurrence of infrequent but large spot price spikes by placing virtual demand bids.

  18. Gas and electricity 2001: new market mechanisms

    International Nuclear Information System (INIS)

    2001-11-01

    This document brings together 15 testimonies of experts about the opening of gas and electricity markets: 1 - from the opening of the electricity market to the future deregulation of the gas market: what are the new rules of the world energy market? Gaz de France's strategy in front of the opening of the market. The problem of the gas supplies in Europe in the framework of the opening of markets; 2 - Is the access to the network the same for everybody: the regulation authority as catalyst of the electricity market; the technical network constraints and the conditions of access to the transport and interconnections; the regulatory and contractual framework of the access to interconnections; how a foreign producer can warrant the supply of electricity in France; 3 - which global offer and which new services to be supplied to clients today: what is the global offer of a new actor? Power supply and associated services: what is the global offer of new actors to answer the client's needs? 4 - What are the expectations and choices of consumers in a de-regulated environment; definitions and implementations of new European strategies of purchase: how the purchaser work has changed? 5 - What is the place of the energy trade: the implementation of the electricity stock exchange in France: Powernext. How to manage risks associated to a gas/electricity assets portfolio? (J.S.)

  19. A novel approach to electricity market education

    International Nuclear Information System (INIS)

    Karjalainen, R.; Viljainen, S.; Partanen, J.

    2007-01-01

    The special characteristics of the competitive Nordic electricity markets were discussed with particular references to the challenges of operating an open power market. Electricity prices in Norway are highly volatile and difficult to estimate because the demand for electricity depends highly on temperature, while the supply of electricity is influenced by water reservoir levels and the price of carbon dioxide allowances. An innovative approach to power engineering education was proposed in an effort to provide power engineering students at Lappeenranta University of Technology (LUT) with skills that are needed for open electricity markets. In addition to the basic power engineering skills, these include an understand of risk management, financing, sales and marketing. The approach was based on developing theoretical and practical teaching methods that are applied in power engineering education at LUT. The practical learning methods played a key role in the development of a Power Exchange Game which was based on the operation of the Nordic power exchange Nord Pool. During the game, student teams used their knowledge and acted as portfolio managers of electric utilities where they analyzed and made decisions regarding the operation in the Nordic electricity market. Upon completion of the game, students were expected analyze their own performance in a final report. Most of the students considered the course an effective and interesting way to study the operation of electricity markets. 9 refs., 1 tab., 9 figs

  20. 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

  1. Risk and investment management in liberalized electricity markets

    International Nuclear Information System (INIS)

    Lemming, J.

    2003-09-01

    Electricity markets around the world are currently undergoing a liberalization process that changes the way electricity is traded and priced as a commodity. The electricity system has unique technical characteristics and the importance of electricity in today's information society is significant. The liberalization will not change the fact that politicians and regulators will be held responsible for keeping electricity on reasonable costs. What changes is the tool used by regulators to accomplish this task. The introduction of competitive markets implies that market participants will be held financial responsible for their decisions. System operators remain responsible for the physical balancing, thus electricity markets will remain strongly regulated even after liberalization. The hypothesis of this thesis is that the relevance of financial tools for electricity market risk management depends critically on the technical characteristics of electricity assets and on the demands placed by the stakeholders in the electricity sector. In many cases such technical characteristics and stakeholder demands will imply a need for revised and renewed tools compared to those used for portfolios of financial assets. (BA)

  2. The electricity market 2002

    International Nuclear Information System (INIS)

    2002-01-01

    The purpose of the 'Electricity market 2002' publication is to meet the need for generalized and readily accessible information on the conditions on the Nordic market. Iceland is not included in the description. The publication also includes summaries of information from recent years concerning electricity generation and utilization in the Nordic countries, the structure of the electricity market from the players' perspective, trade in electricity in the Nordic countries and in Northern Europe, electricity prices in the Nordic and other countries, and the impact of the electricity sector on the environment. The publication contains data on electricity generation and use during the past years, structure of the electricity market, trade in electricity in the Nordic countries and northern Europe, electricity prices in the Nordic countries and other countries as well as impact of electricity generation system on the environment. The market price of electricity is affected by a number of factors, including fuel prices, availability of water, and the power and energy balances of the various countries. The availability of water in Norway and Sweden has been very good in recent years, which has had a major influence on the price. 1996 was a dry year, which led to a high system price on Nord Pool. The price of electricity then dropped and has remained at a relatively low level up to the year 2001. The price of electricity rose during the spring of 2001 and remained at a higher level also during the summer months. The main reason was that the availability of water was lower than normal in Norway during the early part of the year. This created a higher demand for imported electricity in Norway and caused some apprehension that the year would be dry. The total price of electricity to the end users has not followed the system price development. The total cost of electricity to the end consumers consists of three items, i.e. the price of electricity, the network charges and

  3. Retail markets. Electricity and natural gas retail markets Observatory 2. Quarter 2014

    International Nuclear Information System (INIS)

    2014-06-01

    The retail markets Observatory aims to provide general monitoring indicators of electricity and natural gas retail markets in France. This Observatory is updated on a Quarterly basis and published on CRE's web site (www.cre.fr). The first part of the report summarises the highlights of the electricity market (situation, market shares, suppliers, sales, dynamic analysis, regulated prices). The natural gas market is detailed in the second part

  4. Retail markets. Electricity and natural gas retail markets Observatory 1. Quarter 2015

    International Nuclear Information System (INIS)

    2015-03-01

    The retail markets Observatory aims to provide general monitoring indicators of electricity and natural gas retail markets in France. This Observatory is updated on a Quarterly basis and published on CRE's web site (www.cre.fr). The first part of the report summarises the highlights of the electricity market (situation, market shares, suppliers, sales, dynamic analysis, regulated prices). The natural gas market is detailed in the second part

  5. Retail markets. Electricity and natural gas retail markets Observatory 3. Quarter 2015

    International Nuclear Information System (INIS)

    2015-09-01

    The retail markets Observatory aims to provide general monitoring indicators of electricity and natural gas retail markets in France. This Observatory is updated on a Quarterly basis and published on CRE's web site (www.cre.fr). The first part of the report summarises the highlights of the electricity market (situation, market shares, suppliers, sales, dynamic analysis, regulated prices). The natural gas market is detailed in the second part

  6. Retail markets. Electricity and natural gas retail markets Observatory 4. Quarter 2015

    International Nuclear Information System (INIS)

    2015-12-01

    The retail markets Observatory aims to provide general monitoring indicators of electricity and natural gas retail markets in France. This Observatory is updated on a Quarterly basis and published on CRE's web site (www.cre.fr). The first part of the report summarises the highlights of the electricity market (situation, market shares, suppliers, sales, dynamic analysis, regulated prices). The natural gas market is detailed in the second part

  7. Retail markets. Electricity and natural gas retail markets Observatory 1. Quarter 2016

    International Nuclear Information System (INIS)

    2016-03-01

    The retail markets Observatory aims to provide general monitoring indicators of electricity and natural gas retail markets in France. This Observatory is updated on a Quarterly basis and published on CRE's web site (www.cre.fr). The first part of the report summarises the highlights of the electricity market (situation, market shares, suppliers, sales, dynamic analysis, regulated prices). The natural gas market is detailed in the second part

  8. Retail markets. Electricity and natural gas retail markets Observatory 2. Quarter 2015

    International Nuclear Information System (INIS)

    2015-06-01

    The retail markets Observatory aims to provide general monitoring indicators of electricity and natural gas retail markets in France. This Observatory is updated on a Quarterly basis and published on CRE's web site (www.cre.fr). The first part of the report summarises the highlights of the electricity market (situation, market shares, suppliers, sales, dynamic analysis, regulated prices). The natural gas market is detailed in the second part

  9. Retail markets. Electricity and natural gas retail markets Observatory 4. Quarter 2013

    International Nuclear Information System (INIS)

    2013-12-01

    The retail markets Observatory aims to provide general monitoring indicators of electricity and natural gas retail markets in France. This Observatory is updated on a Quarterly basis and published on CRE's web site (www.cre.fr). The first part of the report summarises the highlights of the electricity market (situation, market shares, suppliers, sales, dynamic analysis, regulated prices). The natural gas market is detailed in the second part

  10. Retail markets. Electricity and natural gas retail markets Observatory 1. Quarter 2014

    International Nuclear Information System (INIS)

    2014-03-01

    The retail markets Observatory aims to provide general monitoring indicators of electricity and natural gas retail markets in France. This Observatory is updated on a Quarterly basis and published on CRE's web site (www.cre.fr). The first part of the report summarises the highlights of the electricity market (situation, market shares, suppliers, sales, dynamic analysis, regulated prices). The natural gas market is detailed in the second part

  11. Retail markets. Electricity and natural gas retail markets Observatory 3. Quarter 2014

    International Nuclear Information System (INIS)

    2014-09-01

    The retail markets Observatory aims to provide general monitoring indicators of electricity and natural gas retail markets in France. This Observatory is updated on a Quarterly basis and published on CRE's web site (www.cre.fr). The first part of the report summarises the highlights of the electricity market (situation, market shares, suppliers, sales, dynamic analysis, regulated prices). The natural gas market is detailed in the second part

  12. Retail markets. Electricity and natural gas retail markets Observatory 3. Quarter 2013

    International Nuclear Information System (INIS)

    2013-09-01

    The retail markets Observatory aims to provide general monitoring indicators of electricity and natural gas retail markets in France. This Observatory is updated on a Quarterly basis and published on CRE's web site (www.cre.fr). The first part of the report summarises the highlights of the electricity market (situation, market shares, suppliers, sales, dynamic analysis, regulated prices). The natural gas market is detailed in the second part

  13. Retail markets. Electricity and natural gas retail markets Observatory 4. Quarter 2014

    International Nuclear Information System (INIS)

    2014-12-01

    The retail markets Observatory aims to provide general monitoring indicators of electricity and natural gas retail markets in France. This Observatory is updated on a Quarterly basis and published on CRE's web site (www.cre.fr). The first part of the report summarises the highlights of the electricity market (situation, market shares, suppliers, sales, dynamic analysis, regulated prices). The natural gas market is detailed in the second part

  14. Price dynamics among U.S. electricity spot markets

    International Nuclear Information System (INIS)

    Park, Haesun; Mjelde, James W.; Bessler, David A.

    2006-01-01

    Combining recent advances in causal flows with time series analysis, relationships among 11 U.S. spot market electricity prices are examined. Results suggest that the relationships among the markets vary by time frame. In contemporaneous time, the western markets are separated from the eastern markets and the Electricity Reliability Council of Texas. At longer time frames these separations disappear, even though electricity transmission between the regions is limited. It appears the relationships among markets are not only a function of physical assets (such as transmissions lines among markets), but by similar and dissimilar institutional arrangements among the markets. (Author)

  15. Essays on pricing electricity and electricity derivatives in deregulated markets

    Science.gov (United States)

    Popova, Julia

    2008-10-01

    This dissertation is composed of four essays on the behavior of wholesale electricity prices and their derivatives. The first essay provides an empirical model that takes into account the spatial features of a transmission network on the electricity market. The spatial structure of the transmission grid plays a key role in determining electricity prices, but it has not been incorporated into previous empirical models. The econometric model in this essay incorporates a simple representation of the transmission system into a spatial panel data model of electricity prices, and also accounts for the effect of dynamic transmission system constraints on electricity market integration. Empirical results using PJM data confirm the existence of spatial patterns in electricity prices and show that spatial correlation diminishes as transmission lines become more congested. The second essay develops and empirically tests a model of the influence of natural gas storage inventories on the electricity forward premium. I link a model of the effect of gas storage constraints on the higher moments of the distribution of electricity prices to a model of the effect of those moments on the forward premium. Empirical results using PJM data support the model's predictions that gas storage inventories sharply reduce the electricity forward premium when demand for electricity is high and space-heating demand for gas is low. The third essay examines the efficiency of PJM electricity markets. A market is efficient if prices reflect all relevant information, so that prices follow a random walk. The hypothesis of random walk is examined using empirical tests, including the Portmanteau, Augmented Dickey-Fuller, KPSS, and multiple variance ratio tests. The results are mixed though evidence of some level of market efficiency is found. The last essay investigates the possibility that previous researchers have drawn spurious conclusions based on classical unit root tests incorrectly applied to

  16. 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

  17. Market Design and Supply Security in Imperfect Power Markets

    DEFF Research Database (Denmark)

    Schwenen, Sebastian

    2014-01-01

    Supply security in imperfect power markets is modelled under different market designs. In a uniform price auction for electricity with two firms, strategic behaviour may leave firms offering too few capacities and unable to supply all realized demand. Market design that relies oncapacity markets...... increases available generation capacities for sufficiently high capacity prices and consequently decreases energy prices. However, equilibrium capacity prices are non-competitive. Capacity markets can increase security of supply, but cannot mitigate market power, which is exercised in the capacity market...

  18. Managing total corporate electricity/energy market risks

    International Nuclear Information System (INIS)

    Henney, A.; Keers, G.

    1998-01-01

    The banking industry has developed a tool kit of very useful value at risk techniques for hedging risk, but these techniques must be adapted to the special complexities of the electricity market. This paper starts with a short history of the use of value-at-risk (VAR) techniques in banking risk management and then examines the specific and, in many instances, complex risk management challenges faced by electric companies from the behavior of prices in electricity markets and from the character of generation and electric retailing risks. The third section describes the main methods for making VAR calculations along with an analysis of their suitability for analyzing the risks of electricity portfolios and the case for using profit at risk and downside risk as measures of risk. The final section draws the threads together and explains how to look at managing total corporate electricity market risk, which is a big step toward managing total corporate energy market risk

  19. Micro-economic analysis of the physical constrained markets: game theory application to competitive electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Bompard, E.; Ma, Y.C. [Politecnico di Torino, Dept. of Electrical Engineering, Torino (Italy); Ragazzi, E. [CERIS, Institute for Economic Research on Firms and Growth, CNR, National Research Council, Moncalieri, TO (Italy)

    2006-03-15

    Competition has been introduced in the electricity markets with the goal of reducing prices and improving efficiency. The basic idea which stays behind this choice is that, in competitive markets, a greater quantity of the good is exchanged at a lower price, leading to higher market efficiency. Electricity markets are pretty different from other commodities mainly due to the physical constraints related to the network structure that may impact the market performance. The network structure of the system on which the economic transactions needs to be undertaken poses strict physical and operational constraints. Strategic interactions among producers that game the market with the objective of maximizing their producer surplus must be taken into account when modeling competitive electricity markets. The physical constraints, specific of the electricity markets, provide additional opportunity of gaming to the market players. Game theory provides a tool to model such a context. This paper discussed the application of game theory to physical constrained electricity markets with the goal of providing tools for assessing the market performance and pinpointing the critical network constraints that may impact the market efficiency. The basic models of game theory specifically designed to represent the electricity markets will be presented. IEEE30 bus test system of the constrained electricity market will be discussed to show the network impacts on the market performances in presence of strategic bidding behavior of the producers. (authors)

  20. Micro-economic analysis of the physical constrained markets: game theory application to competitive electricity markets

    Science.gov (United States)

    Bompard, E.; Ma, Y. C.; Ragazzi, E.

    2006-03-01

    Competition has been introduced in the electricity markets with the goal of reducing prices and improving efficiency. The basic idea which stays behind this choice is that, in competitive markets, a greater quantity of the good is exchanged at a lower price, leading to higher market efficiency. Electricity markets are pretty different from other commodities mainly due to the physical constraints related to the network structure that may impact the market performance. The network structure of the system on which the economic transactions need to be undertaken poses strict physical and operational constraints. Strategic interactions among producers that game the market with the objective of maximizing their producer surplus must be taken into account when modeling competitive electricity markets. The physical constraints, specific of the electricity markets, provide additional opportunity of gaming to the market players. Game theory provides a tool to model such a context. This paper discussed the application of game theory to physical constrained electricity markets with the goal of providing tools for assessing the market performance and pinpointing the critical network constraints that may impact the market efficiency. The basic models of game theory specifically designed to represent the electricity markets will be presented. IEEE30 bus test system of the constrained electricity market will be discussed to show the network impacts on the market performances in presence of strategic bidding behavior of the producers.

  1. 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)

  2. The liberalization of electricity markets

    International Nuclear Information System (INIS)

    Lepage, H.; Boucher, M.

    2001-01-01

    Since the end of the 1980s, the electric industry is changing. Privatization, vertical disintegrations, deregulation, restructuring, market openness are models which cause the world to question the regulated model inspired from natural monopolistic theories that are emerging in many parts of the industrialized world. Why are we witnessing these changes? What makes competitiveness possible in an industry where it was always assumed that market forces could not be relied upon? How do these markets function? On what basis and with what rules? What lessons can be learned from the experiments now taking place? This document updates this complex economic process, which proved irreversible, despite badly thought out deregulation in California and other locales. The authors explain the changes that have taken place in the electricity industry in the United States since the First World War and compares experiences with deregulation in Canada, Europe and Australia. The public monopoly being exercised by Hydro-Quebec in Quebec is examined in detail and avenues for changes in the context of liberalization of electricity markets in North America are discussed. refs., figs

  3. Technology mix configuration in liberalized electricity market

    International Nuclear Information System (INIS)

    Castro-Rodriguez, F.

    2007-01-01

    This paper analyzes the evolution of technology mix in the electricity industry when investment choices are left to private investors. In particular, possible failures and investment biases in recent liberalized electricity markets are presented. In addition, the main regulatory mechanisms used in practice and their effects are analyzed. Finally, this paper explores the government intervention in technology choices in the Spanish electricity market from the beginning of the liberalization process. While some regulatory rules have adequacy complemented the market functioning, others have distorted the electricity price, which is the reference to signal right investments. (Author) 13 refs

  4. Investments and price formation in a liberalized electric power market. Appendices; Investering og prisdannelse pae et liberaliseret elmarked. Bilag

    Energy Technology Data Exchange (ETDEWEB)

    Morthorst, P.E.

    2005-05-01

    How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. The appendix volume of the project report contains detailed descriptions of the three models that are used: the Balmorel model, the investment model, and the MARS model. The Balmorel model is a partial equilibrium model that describes a coherent, international electric power system and combined heat and power system. The model was developed in 2000 through international co-operation with the aim to have a model for analysing international aspects in the Baltic area. The investment model analyses and models the investment decisions in a liberalized Nordic electric power market. It is an exogenous model constructed outside the Balmorel model but uses the price pictures from the Balmorel model as input. MARS (MARket Simulation) is Eltra's (a Danish electric power transmission company) market model for simulating prices, production, demand and exchanges in the power market. The model covers the Nordic countries (Nord Pool) and Northern Germany. (LN)

  5. Optimal electricity market for wind power

    International Nuclear Information System (INIS)

    Holttinen, H.

    2005-01-01

    This paper is about electricity market operation when looking from the wind power producers' point of view. The focus in on market time horizons: how many hours there is between the closing and delivering the bids. The case is for the Nordic countries, the Nordpool electricity market and the Danish wind power production. Real data from year 2001 was used to study the benefits of a more flexible market to wind power producer. As a result of reduced regulating market costs from better hourly predictions to the market, wind power producer would gain up to 8% more if the time between market bids and delivery was shortened from the day ahead Elspot market (hourly bids by noon for 12-36 h ahead). An after sales market where surplus or deficit production could be traded 2 h before delivery could benefit the producer almost as much, gaining 7%

  6. Risk and investment management in liberalized electricity markets

    DEFF Research Database (Denmark)

    Lemming, Jacob Kjærgaard

    2005-01-01

    markets affects the nancial risk related to different decision problems within the areas of risk management and investments in liberalized electricity markets. Focus is on applied microeconomics and analyzes of the interplay between market design parameters and the technical characteristics...... of the electricity system. Theory, literature and introduction to speci c problem areas related to risk management and investments is provided in two separate introductory chapters. Contributions to research within specific problems areas is then subsequently provided by five research papers. The two topics...... are relatively broad, however the two chapters and ve papers all share analyzes of nancial risk in liberalized electricity markets as a common underlying theme. The risk management part of the thesis focusses on modelling and measurement of financial risk in electricity markets. Key topics are electricity price...

  7. Market design and supply security in imperfect power markets

    International Nuclear Information System (INIS)

    Schwenen, Sebastian

    2014-01-01

    Supply security in imperfect power markets is modelled under different market designs. In a uniform price auction for electricity with two firms, strategic behaviour may leave firms offering too few capacities and unable to supply all realized demand. Market design that relies on capacity markets increases available generation capacities for sufficiently high capacity prices and consequently decreases energy prices. However, equilibrium capacity prices are non-competitive. Capacity markets can increase security of supply, but cannot mitigate market power, which is exercised in the capacity market instead of the energy market. - Highlights: • I model two power generating firms who compete to serve stochastic demand in a multiunit uniform price auction. • In equilibrium, blackout probabilities can arise through capacity withholding. • Capacity mechanisms decrease capacity withholding and the expected energy price. • With dominant firms, capacity mechanisms are only effective if capacity prices are non-competitive and include a mark-up for leaving the energy-only market optimum

  8. Bi-Level Optimization for Available Transfer Capability Evaluation in Deregulated Electricity Market

    Directory of Open Access Journals (Sweden)

    Beibei Wang

    2015-11-01

    Full Text Available Available transfer capability (ATC is the transfer capability remaining in the physical transmission network for further commercial activity over and above already committed uses which needs to be posted in the electricity market to facilitate competition. ATC evaluation is a complicated task including the determination of total transfer capability (TTC and existing transfer capability (ETC. In the deregulated electricity market, ETC is decided by the independent system operator’s (ISO’s economic dispatch (ED. TTC can then be obtained by a continuation power flow (CPF method or by an optimal power flow (OPF method, based on the given ED solutions as well as the ETC. In this paper, a bi-level optimization framework for the ATC evaluation is proposed in which ATC results can be obtained simultaneously with the ED and ETC results in the deregulated electricity market. In this bi-level optimization model, ATC evaluation is formulated as the upper level problem and the ISO’s ED is the lower level problem. The bi-level model is first converted to a mathematic program with equilibrium constraints (MPEC by recasting the lower level problem as its Karush-Kuhn-Tucher (KKT optimality condition. Then, the MPEC is transformed into a mixed-integer linear programming (MILP problem, which can be solved with the help of available optimization software. In addition, case studies on PJM 5-bus, IEEE 30-bus, and IEEE 118-bus systems are presented to demonstrate the proposed methodology.

  9. On the evaluation of market power and market dominance-The Nordic electricity market

    International Nuclear Information System (INIS)

    Hellmer, Stefan; Warell, Linda

    2009-01-01

    This paper studies different concentration and dominance measures using structural indexes used to initially screen the competitive situation in a market. The Nordic and Swedish electricity markets are used as the empirical cases. Market concentration issues in the Nordic electricity market in general and in Sweden in particular have been, at least in initial screenings, approached by the Herfindahl-Hirschman Index (HHI). This article uses an alternative measure to HHI, which is based on market shares of the two largest firms in the market. The results shows that only the Swedish wholesale market has a firm that can be regarded as dominant, but only during very short periods. The results from a hypothetical merger between the second and third largest company in the Swedish wholesale market shows that when the dominant position of the largest firm is reduced, by increasing the size of the second largest firm, the threshold value indicates that competition actually will increase (contradicting to the HHI).

  10. Consumption, price asymmetries, transmission congestion and market power in the Norwegian electricity market

    Energy Technology Data Exchange (ETDEWEB)

    Mirza, Faisal Mehmood

    2011-07-01

    The results from this dissertation add to the ongoing debate in Norway if NordPool spot should shift from zonal price scheme to the nodal price scheme. Academically, the individual papers provide a number of theoretical frameworks that are helpful in analyzing electricity markets around the world. The PhD dissertation investigates price determination process in the Norwegian electricity market and evaluates if the market works at perfectly competitive level or producers exercise market power to drive prices away from their marginal cost of production. Using aggregate hourly electricity supply and demand data, the empirical analysis carried out in this dissertation leads to the following conclusions. 1. Market power at the generation level is not a major problem for the Norwegian electricity market. On average, when we consider the events of binding transmission capacity as exogenous, the average markup in economic terms is small and has not exceeded one percent. 2. Producers can use the information on available transmission capacity between different price areas in Norway and restrict their output to induce transmission congestion in their price area to exercise market power. Average markup during such instances has remained high at 20 percent. 3. Transmission capacity in Norway is not being optimally utilized as import capacity remains at its lowest level during the hours when southern Norway is generally a net importer of electricity, when compared to the rest of the hours of the day. 4. A segment of electricity retailers in the Norwegian electricity market exercises its market power by controlling the pass-through of price changes in the wholesale market to the retail market for variable price contract consumers. The pass-through is asymmetric, whereby cost increase is transmitted completely and quickly when compared to the case of cost decrease. 5.The Daylight saving time (Summer time) policy is helpful in ensuring energy efficiency. It results in electricity

  11. Opportunities for electricity storage in deregulating markets

    International Nuclear Information System (INIS)

    Graves, F.; Jenkin, T.; Murphy, D.

    1999-01-01

    This article addresses the value of electricity storage and its ability to take advantage of emerging energy arbitrage opportunities: buying power when it is inexpensive, and reselling it at a higher price. The focus of this article is on electricity markets and the opportunities they present for a merchant storage device, rather than on storage technologies themselves. There are a number of existing and emerging storage technologies: pumped hydro, various batteries, compressed air energy storage (CAES), superconducting magnetic energy storage (SMES), flywheels--even conventional hydro has storage-like properties. However, all these technologies operated on the same basic principle of exploiting short-term differentials in electricity prices: buy low, sell high (a strategy that is actually meaningful in electricity markets, unlike in financial markets). The object of this article is to develop and demonstrate a means for assessing the potential value of storage in different electricity markets, rather than to attempt to assess the prospects of a particular technology. The approach taken here is to look at price data from a number of actual electricity markets to determine what opportunities they might offer to a generic storage device. A storage technology is described here by its basic performance parameters--charge and generate capacity, energy inventory limits, and efficiency--which are sufficient to assess the basic economic potential of storage in a given market. The authors look primarily at US markets, but also compare and contrast findings with the situation in foreign markets in the U.K., Norway, Canada, and Australia, and discuss how market structure can influence the value of storage. Moreover, the authors use empirically observed relationships between hourly and 5 x 16 blocked prices to infer a rule for adjusting the value of storage assets in regions where only blocked price information is available

  12. 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)

  13. The challenges of the electricity trade in liberalised markets

    International Nuclear Information System (INIS)

    Wanzek, S.

    2001-01-01

    As a consequence of the electricity market liberalization a new market emerged allowing electricity to be traded as a commodity. The structure of the electricity companies has to be adopted in the new market model and the regulatory framework has to ensure a level playing field for the participants in the market. Trading has taken on considerable strategic significance for all market participants. The price of electricity is becoming more and more volatile. In this paper the targets, forms and lessons E. ON's electricity trade are discussed. In addition, the impacts of successful trading and obtained experiences are analysed. At the end an outlook for electricity trade in East and South-East Europe is given. (author)

  14. Medium-Term Probabilistic Forecasting of Extremely Low Prices in Electricity Markets: Application to the Spanish Case

    Directory of Open Access Journals (Sweden)

    Antonio Bello

    2016-03-01

    Full Text Available One of the most relevant challenges that have arisen in electricity markets during the last few years is the emergence of extremely low prices. Trying to predict these events is crucial for market agents in a competitive environment. This paper proposes a novel methodology to simultaneously accomplish punctual and probabilistic hourly predictions about the appearance of extremely low electricity prices in a medium-term scope. The proposed approach for making real ex ante forecasts consists of a nested compounding of different forecasting techniques, which incorporate Monte Carlo simulation, combined with spatial interpolation techniques. The procedure is based on the statistical identification of the process key drivers. Logistic regression for rare events, decision trees, multilayer perceptrons and a hybrid approach, which combines a market equilibrium model with logistic regression, are used. Moreover, this paper assesses whether periodic models in which parameters switch according to the day of the week can be even more accurate. The proposed techniques are compared to a Markov regime switching model and several naive methods. The proposed methodology empirically demonstrates its effectiveness by achieving promising results on a real case study based on the Spanish electricity market. This approach can provide valuable information for market agents when they face decision making and risk-management processes. Our findings support the additional benefit of using a hybrid approach for deriving more accurate predictions.

  15. 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

  16. Russian electricity market reform: Deregulation or re-regulation?

    International Nuclear Information System (INIS)

    Gore, Olga; Viljainen, Satu; Makkonen, Mari; Kuleshov, Dmitry

    2012-01-01

    Russia commenced liberalization of electricity prices in 2007 increasing the liberalization rate by 10–25% every six months. It was planned to reach full liberalization by 2011. Currently, the degree of liberalization is uncertain because of intense price regulation and a highly concentrated market in the hands of four large generating companies. Increased regulation and further consolidation may drive the market towards its pre-reform state. This paper analyses the competitive landscape of the Russian electricity market by assessing the ownership structure of electricity generation, price drivers, and government involvement in the electricity wholesale market in Russia. The main research question is why the targeted level of market liberalization has not been fully achieved in the Russian electricity market. - Highlights: ► Congested grid; deficit of capacity and market concentration hinder competition. ► Investment needs of the power sector led to price shocks. ► Price increase and poor competition force the government to regulate prices. ► Low liberalization rate and non-cost-reflective pricing is a result of price regulation. ► Increased regulation and consolidation drive the market toward its pre-reform state.

  17. Realistic electricity market simulator for energy and economic studies

    International Nuclear Information System (INIS)

    Bernal-Agustin, Jose L.; Contreras, Javier; Conejo, Antonio J.; Martin-Flores, Raul

    2007-01-01

    Electricity market simulators have become a useful tool to train engineers in the power industry. With the maturing of electricity markets throughout the world, there is a need for sophisticated software tools that can replicate the actual behavior of power markets. In most of these markets, power producers/consumers submit production/demand bids and the Market Operator clears the market producing a single price per hour. What makes markets different from each other are the bidding rules and the clearing algorithms to balance the market. This paper presents a realistic simulator of the day-ahead electricity market of mainland Spain. All the rules that govern this market are modeled. This simulator can be used either to train employees by power companies or to teach electricity markets courses in universities. To illustrate the tool, several realistic case studies are presented and discussed. (author)

  18. European internal electricity market. What next?

    International Nuclear Information System (INIS)

    Petrov, K.; Hewicker, C.; Boisseleau, F.; Nabuurs, P.

    2007-01-01

    2006 has been a very active year in the development of electricity markets worldwide. In Europe the liberalisation process was moving forward driven by the European Directives implemented in the EU states. Together with security of supply and environmental protection, implementation of competitive energy markets has also been one of the main objectives of EU energy policy. A competitive internal market for electricity has been progressively implemented across the European Union since 1999-2000. This process aims at increasing competition in electricity generation and supply leading to enhanced efficiency, which is closely associated with lower production costs and ultimately lower electricity prices. The sector inquiry and the country reviews conducted by the European Commission (EC) during 2006 showed that progress has been achieved. However, there are still a number of issues that need to be resolved in order to achieve an adequately operating internal electricity market. The EC energy package from 10th January 2007 is a set of concrete proposals for action in the energy field and arises in reaction to the Green Paper published on 8th March 2006. The Green Paper 'A European Strategy for Sustainable, Competitive and Secure Energy', on the one hand, identified the main problems that the European energy sector faces and, on the other hand, suggested possible actions to meet key objectives, including security of supply, environmental sustainability and competitiveness towards a unified European Energy Policy. The motivation of the EC package is the need to identify new measures or a strengthening of existing measures to reach the targets and their underlying objectives. The EC package deals with the main issues on energy policy (renewable electricity, internal electricity and gas market, sector competition, sustainable power generation from fossil fuels, nuclear energy, gas and electricity infrastructures and energy technology) and an action plan for energy

  19. 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.

  20. Liquidity in the Dutch wholesale electricity market

    International Nuclear Information System (INIS)

    Newbery, D.; Von der Fehr, N.H.; Van Damme, E.

    2003-05-01

    Industry concerns over perceived reductions in the liquidity of the Dutch wholesale electricity market led the DTe to ask the Market Surveillance Committee (MSC) to examine recent developments. This report starts with a generic examination of wholesale power markets and liquidity and its measurement. An overview of the Dutch wholesale electricity market and its constituent segments follows together with a summary of events and opinions connected to liquidity that have been reported in the trade press. Sources of information on market liquidity are then reviewed. Participation in the market is analysed before examining each market segment and this analysis and the earlier sections are then drawn together in conclusions and recommendations

  1. 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

  2. The New Electricity Market of Singapore: Regulatory framework, market power and competition

    International Nuclear Information System (INIS)

    Chang Youngho

    2007-01-01

    This study examines whether the New Electricity Market of Singapore (NEMS) is functioning at a workable level of competition. The generation market of the NEMS appears highly concentrated by a four-firm concentration ratio or the Herfindahl-Hirschman Index. However, other measures of market power present that the NEMS is working at close to a competitive market. First, there seems to be a number of effective competitors in the market. Second, Supply Margin Assessment and Residual Supply Index support that the market is competitive though there are some possibilities in which the largest generator or a few large generators jointly could still have market power. Third, the Lerner Index of the NEMS shows that the generation market is fairly competitive and the Lerner Index adjusted with an industry level price elasticity of demand implies that there has not been much exercise of market power. Finally, vesting contracts-a contractual obligation of a specified quantity of electricity supply to the market-have appeared to be a strong and effective tool to mitigate market power in the NEMS. The vesting contracts are considered the force behind the lowering in the average Uniform Singapore Electricity Price and the Lerner Index in 2004

  3. The Liberalisation of the Electricity Market in Italy

    International Nuclear Information System (INIS)

    Dessenibus, A.; Viskovic, A.; Carollo, T.

    2001-01-01

    The electricity sector is under reform in all EU countries on both of the aspects of market organisation and Utilities' restructuring, the latter being a consequence of the former. Until very recently, most governments have considered the whole power sector to be a natural monopoly and therefore it should be closely regulated. Market liberalisation shifts decision-making from the State to the market and, for the first time in the history of electricity Utility, gives consumer a choice. The new framework is featured by the introduction of competition in electricity generation and end-users' supply, non-discriminatory access to the electricity network and a redefinition of the regulatory function of governments. This study briefly resumes the market reforms and the new market organisation in Italy. Italy has implemented the EU directive on internal electricity market since 1999. So far, the process of market liberalisation has not come to an end yet. Currently ENEL, the former vertically integrated monopolist, is dismissing 25 percent of its power generation capacity, by selling in the market three power generation companies (GENCOs). An independent Transmission System Operator is fully operative since July 1999 and a transparent and non-discriminatory access to the network is guaranteed to all of the electricity power generation companies. The Market Pool Operator is defining the code of the Market Pool that will be applied to the price settlement into the Pool. The opening of the market on the demand side is growing year by year, according to the enlargement of the consumers who are allowed to sign freely contracts of supply with distributors (eligible consumers). Three months after the selling of the third Genco, the eligibility threshold will be lowered at 0.1 GWh. At that time, the open market is expected to represent 70 percent of the overall electricity consumption in Italy. Available evidence on liberalisation process in United Kingdom and in Scandinavian

  4. Energy subsidies in California's electricity market deregulation

    International Nuclear Information System (INIS)

    Ritschel, Alexander; Smestad, G.P.

    2003-01-01

    Deregulation and re-regulation of California's electricity market not only failed in terms of anticipated cost reductions, improved customer service and higher competition, it also led to the introduction of various additional energy subsidies. This paper analyzes California's electricity market deregulation process from a subsidy viewpoint. Under deregulation in California, investor-owned utilities were not allowed to pass their energy procurement costs fully on to their customers, and therefore subsequently, and inevitably, ran into severe financial problems. Such retail price regulation is an energy subsidy that is both economically and environmentally unfavorable, because it veils true price signals to electricity consumers and, in this way, discourages energy conservation. Other policies implemented in California that represent perverse energy subsidies are the purchase of power by the state of California, the suspension of retail competition, and the potential misuse of money from the recovery of stranded costs. Many interventions implemented by the state to smooth out the impacts of the energy crisis insulated electricity consumers from market realities, supported the existing structure of California's electricity market, which is predominantly based on fossil fuels, and suppressed market incentives to improve energy conservation

  5. Using forward markets to improve electricity market design

    International Nuclear Information System (INIS)

    Ausubel, Lawrence M.; Cramton, Peter

    2010-01-01

    Forward markets, both medium term and long term, complement the spot market for wholesale electricity. The forward markets reduce risk, mitigate market power, and coordinate new investment. In the medium term, a forward energy market lets suppliers and demanders lock in energy prices and quantities for one to three years. In the long term, a forward reliability market assures adequate resources are available when they are needed most. The forward markets reduce risk for both sides of the market, since they reduce the quantity of energy that trades at the more volatile spot price. Spot market power is mitigated by putting suppliers and demanders in a more balanced position at the time of the spot market. The markets also reduce transaction costs and improve liquidity and transparency. Recent innovations to the Colombia market illustrate the basic elements of the forward markets and their beneficial role. (author)

  6. Using forward markets to improve electricity market design

    Energy Technology Data Exchange (ETDEWEB)

    Ausubel, Lawrence M.; Cramton, Peter [University of Maryland, College Park, MD 20742 (United States)

    2010-12-15

    Forward markets, both medium term and long term, complement the spot market for wholesale electricity. The forward markets reduce risk, mitigate market power, and coordinate new investment. In the medium term, a forward energy market lets suppliers and demanders lock in energy prices and quantities for one to three years. In the long term, a forward reliability market assures adequate resources are available when they are needed most. The forward markets reduce risk for both sides of the market, since they reduce the quantity of energy that trades at the more volatile spot price. Spot market power is mitigated by putting suppliers and demanders in a more balanced position at the time of the spot market. The markets also reduce transaction costs and improve liquidity and transparency. Recent innovations to the Colombia market illustrate the basic elements of the forward markets and their beneficial role. (author)

  7. Decoding restricted participation in sequential electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Knaut, Andreas; Paschmann, Martin

    2017-06-15

    Restricted participation in sequential markets may cause high price volatility and welfare losses. In this paper we therefore analyze the drivers of restricted participation in the German intraday auction which is a short-term electricity market with quarter-hourly products. Applying a fundamental electricity market model with 15-minute temporal resolution, we identify the lack of sub-hourly market coupling being the most relevant driver of restricted participation. We derive a proxy for price volatility and find that full market coupling may trigger quarter-hourly price volatility to decrease by a factor close to four.

  8. Solar PV electricity and market characteristics: two Canadian case-studies

    International Nuclear Information System (INIS)

    Rowlands, I.H.

    2005-01-01

    To determine whether solar electricity (that is, electricity generated by photovoltaics) is, on an average, more valuable - in market terms - than the electricity generated in power systems as a whole, this article investigates the extent to which solar resource availability in two Canadian locations is associated with peak electricity market demand and peak electricity market price. More specifically, solar radiation and electricity market data for the period 1 May 2002 to 30 April 2004 are examined for Calgary, Alta. and Guelph, Ont. A variety of visual and statistical investigations reveal that solar radiation values coincide closely with peak electricity market demand and, though to a somewhat lesser extent, peak electricity market prices during the summertime in each location. While more detailed investigation is needed in order to determine the specific impact of different levels of PV penetration upon provincial electricity markets, the article provides ample encouragement for further research. The article also shows how different techniques can be used-in any location-to investigate the relationship among solar electricity potential, system-wide demand and market prices. With electricity industries being restructured around the world, it continues to be important for solar energy proponents to participate in discussions regarding economic costs and benefits. Techniques used in this article can help them advance the solar electricity case more effectively and thus catalyse the deployment of photovoltaics in markets around the world. (author)

  9. Th european market of the electric power

    International Nuclear Information System (INIS)

    2001-01-01

    This document presents the CRE (commission of the Electric power Control) progress report concerning the first july 2000 to the 30 june 2001. Three main subjects are discussed, illustrated by economic data and graphs: the electric power european market, the french market control and the CRE. A special interest is given to the deregulation of the market and its consequences. (A.L.B.)

  10. Electricity market models and RES integration: The Greek case

    International Nuclear Information System (INIS)

    Simoglou, Christos K.; Biskas, Pandelis N.; Vagropoulos, Stylianos I.; Bakirtzis, Anastasios G.

    2014-01-01

    This paper presents an extensive analysis of the Greek electricity market for the next 7-year period (2014–2020) based on an hour-by-hour simulation considering five different RES technologies, namely wind, PV, small hydro, biomass and CHP with emphasis on PV integration. The impact of RES penetration on the electricity market operation is evaluated under two different models regarding the organization of the Greek wholesale day-ahead electricity market: a mandatory power pool for year 2014 (current market design) and a power exchange for the period 2015–2020 (Target Model). An integrated software tool is used for the simulation of the current and the future day-ahead market clearing algorithm of the Greek wholesale electricity market. Simulation results indicate the impact of the anticipated large-scale RES integration, in conjunction with each market model, on specific indicators of the Greek electricity market in the long-term. - Highlights: • Analysis of the Greek electricity market for the next 7-year period (2014–2020) based on hour-by-hour simulation. • Five different RES technologies are considered with emphasis on PV integration. • A power pool (for 2014) and a power exchange (for 2015–2020) are considered. • Various market indicators are used for the analysis of the impact of the RES integration on the Greek electricity market. • Two alternative tariff schemes for the compensation of the new ground-mounted PV units from 2015 onwards are investigated

  11. A Revenue Equivalence Result in a Duopolistic Electricity Market where one of the suppliers has two production units

    Directory of Open Access Journals (Sweden)

    Estrella Alonso

    2012-04-01

    Full Text Available In this paper we will model the electricity market auction as a two-person game with incomplete information under the assumption that bid-ders are asymmetric in units production, risk neutral and with unknownvalues.We characterize the strictly monotone bayesian Nash equilibrium andwe rank a family of auction models which contains the classic models Uniform, Discriminatory and Vickrey auction models.

  12. Quantifying multiscale inefficiency in electricity markets

    International Nuclear Information System (INIS)

    Uritskaya, Olga Y.; Serletis, Apostolos

    2008-01-01

    One of the basic features of efficient markets is the absence of correlations between price increments over any time scale leading to random walk-type behavior of prices. In this paper, we propose a new approach for measuring deviations from the efficient market state based on an analysis of scale-dependent fractal exponent characterizing correlations at different time scales. The approach is applied to two electricity markets, Alberta and Mid Columbia (Mid-C), as well as to the AECO Alberta natural gas market (for purposes of providing a comparison between storable and non-storable commodities). We show that price fluctuations in all studied markets are not efficient, with electricity prices exhibiting complex multiscale correlated behavior not captured by monofractal methods used in previous studies. (author)

  13. Quantifying multiscale inefficiency in electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Uritskaya, Olga Y. [Department of Economics, University of Calgary, Calgary, Alberta T2N 1N4, and Department of Economics and Management, St. Petersburg Polytechnic University, St. Petersburg (Russian Federation); Serletis, Apostolos [Department of Economics, University of Calgary, Calgary, Alberta (Canada)

    2008-11-15

    One of the basic features of efficient markets is the absence of correlations between price increments over any time scale leading to random walk-type behavior of prices. In this paper, we propose a new approach for measuring deviations from the efficient market state based on an analysis of scale-dependent fractal exponent characterizing correlations at different time scales. The approach is applied to two electricity markets, Alberta and Mid Columbia (Mid-C), as well as to the AECO Alberta natural gas market (for purposes of providing a comparison between storable and non-storable commodities). We show that price fluctuations in all studied markets are not efficient, with electricity prices exhibiting complex multiscale correlated behavior not captured by monofractal methods used in previous studies. (author)

  14. 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)

  15. Fostering renewable electricity markets in North America

    International Nuclear Information System (INIS)

    Wingate, M.; Hamrin, J.; Kvale, L.; Alatorre, C.

    2007-04-01

    This paper provided an overview of key market demand and supply drivers for the renewable electricity in Canada, the United States and Mexico. The aim of the paper was to assist North American governments in supporting the development of renewable electricity by addressing barriers that currently contribute to higher costs as well as challenges related to policy implementation. The paper outlined regulatory mandates and discussed issues related to voluntary purchases, and financial incentives. Current policy frameworks for renewable electricity were also examined. Opportunities for developing the renewable electricity market North America were explored. Wind power environmental standards were reviewed. Various green pricing schemes were discussed. The paper also included recommendations for the current electricity market as well as for members of the North American Agreement on Environmental Cooperation. 84 refs., 4 tabs., 7 figs

  16. Market readiness report : status of preparation for Ontario's competitive retail electricity market

    International Nuclear Information System (INIS)

    2002-01-01

    The Ontario Energy Board (OEB) assumes a leadership role in the electricity sector to ensure the readiness of retail participants in Ontario's competitive electricity market. The Market Readiness Project Team is instrumental in this activity. The team, led by the Independent Electricity Market Operator, provides information and advice regarding the technical readiness of the retail industry, with particular focus on the readiness of distributors to carry out their important functions in a competitive market. This report provides an assessment of the team regarding the industry's technical readiness based on information as of December 14, 2001. The status of retail market readiness was reviewed in terms of the viability of the design of the new competitive market and on the status of Ontario distributors in enabling a competitive market. The workplan for the remaining industry activities needed to achieve market opening were then summarized along with the contingency arrangements for any distributors that are not ready for market opening. Based on several projections, an estimated 88 per cent of Ontario contracts will be served by a distributor starting on a May 1, 2002 market opening. tabs., figs., appendices

  17. Essays on environmental regulations in electricity markets

    Science.gov (United States)

    Sun, Yanming

    Reducing the Greenhouse Gas pollution and promoting energy efficiency among consumers' energy use have been major public policy issues recently. Currently, both the United States and the European Union have set up explicit percentage requirements that require energy generators or consumers to undertake a certain percentage of their energy production or consumption from renewable sources. To achieve their renewable targets, the Tradable Green Certificates (TGC) system has been introduced in their electricity markets. Moreover, in order to promote energy conservation and achieve energy efficiency targets, price policies and price changes derived from environmental regulations have played a more important role in reducing electricity consumption. My research studies problems associated with these policy implementations. In Chapter 1, I analyze a competitive electricity market with two countries operated under a common TGC system. By using geometric illustrations, I compare the two countries' welfare when the renewable quota is chosen optimally under the common certificate market with three different situations. The policy recommendation is that when the value of damage parameter is sufficiently small, full integration with a TGC market is welfare superior to full integration of an all fossil-fuel based market with an optimal emissions standard. In Chapter 2, by analyzing a stylized theoretical model and numerical examples, I investigate the performance of the optimal renewables policy under full separation and full integration scenarios for two countries' electricity markets operated under TGC systems. In my third chapter, I look at residential electricity consumption responsiveness to increases of electricity price in the U.S. and the different effect of a price increase on electricity use for states of different income levels. My analysis reveals that raising the energy price in the short run will not give consumers much incentive to adjust their appliances and make

  18. Time-dependent correlations in electricity markets

    International Nuclear Information System (INIS)

    Alvarez-Ramirez, Jose; Escarela-Perez, Rafael

    2010-01-01

    In the last years, many electricity markets were subjected to deregulated operation where prices are set by the action of market participants. In this form, producers and consumers rely on demand and price forecasts to decide their bidding strategies, allocate assets, negotiate bilateral contracts, hedge risks, and plan facility investments. A basic feature of efficient market hypothesis is the absence of correlations between price increments over any time scale leading to random walk-type behavior of prices, so arbitrage is not possible. However, recent studies have suggested that this is not the case and correlations are present in the behavior of diverse electricity markets. In this paper, a temporal quantification of electricity market correlations is made by means of detrended fluctuation and Allan analyses. The approach is applied to two Canadian electricity markets, Ontario and Alberta. The results show the existence of correlations in both demand and prices, exhibiting complex time-dependent behavior with lower correlations in winter while higher in summer. Relatively steady annual cycles in demand but unstable cycles in prices are detected. On the other hand, the more significant nonlinear effects (measured in terms of a multifractality index) are found for winter months, while the converse behavior is displayed during the summer period. In terms of forecasting models, our results suggest that nonlinear recursive models (e.g., feedback NNs) should be used for accurate day-ahead price estimation. In contrast, linear models can suffice for demand forecasting purposes. (author)

  19. Nordic Market report 2010. Development in the Nordic Electricity Market

    Energy Technology Data Exchange (ETDEWEB)

    2010-07-15

    The Nordic region is characterized by a unique mix of generation sources, with a very high share of hydropower. Hydropower accounts for virtually all of the Norwegian and nearly half of the Swedish generation capacity, making the level of precipitation vital when calculating and analysing potential generation levels. Climatic conditions such as, significantly colder winters than any other European country also influence consumption in the Nordic region, as many households are electrically heated. Overall electricity consumption in the Nordic region in 2009 was marked by decreasing consumption in every market - from a decrease of 1,5% in Denmark to a decrease of 5,5% in Finland. The Nordic transmission grid connects almost the entire region into one synchronous power system enabling increased security of supply as well as a more efficient use of the generation capacity, but congestion occurs. Congestions between the Nord Pool bidding areas are handled through market splitting, while internal congestions in general are handled through counter trade or by reducing interconnector capacity at the bidding area borders. The key future challenge for transmission network operations both in the Nordic area, and as well on the European level will be to facilitate the functioning of the pan-European wholesale electricity markets. The Nordic wholesale power market is well functioning. The volume traded at Nord Pool in 2009 was about the same share of total consumption as that of 2008. Although trading at Nord Pool is voluntary, significantly more power is traded on the power exchange than bilaterally. During 2009 average spot prices at Nord Pool were lower than prices in 2008 due to both lower demand and generation costs for thermal power plants for most of 2009. The Nordic retail markets are essentially four separate markets, influenced by national differences, but work on integration has started. Throughout 2009 retail prices in the Nordic region were lower than in 2008

  20. A novel approach for modeling deregulated electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Rubin, Ofir D., E-mail: rubino@agri.huji.ac.i [Department of Agricultural Economics and Management, Hebrew University of Jerusalem, P.O. Box 12, Rehovot 76100 (Israel); Babcock, Bruce A., E-mail: babcock@iastate.ed [Department of Economics, Iowa State University, 578F Heady Hall, Ames, IA 50011-1070 (United States); Center for Agricultural and Rural Development (CARD), Iowa State University, Ames, IA 50011-1070 (United States)

    2011-05-15

    The theoretical framework developed in this study allows development of a model of deregulated electricity markets that explains two familiar empirical findings; the existence of forward premiums and price-cost markups in the spot market. This is a significant contribution because electricity forward premiums have been previously explained exclusively by the assumptions of perfect competition and risk-averse behavior while spot markups are generally the outcome of a body of literature assuming oligopolistic competition. Our theoretical framework indicates that a certain premium for forward contracting is required for efficient allocation of generation capacity. However, due to the uniqueness of electricity and the design of deregulated electricity markets this premium might be substantially higher than its optimal level. - Research highlights: {yields} The state of knowledge regarding modeling electricity markets is incomplete. {yields} Electricity forward premiums are not necessarily driven by risk aversion. {yields} Efficiency in production requires a certain premium for forward contracting. {yields} It is likely that market premiums are substantially higher than their optimal level. {yields} Policy regulation should not seek to eliminate forward premium entirely.

  1. A novel approach for modeling deregulated electricity markets

    International Nuclear Information System (INIS)

    Rubin, Ofir D.; Babcock, Bruce A.

    2011-01-01

    The theoretical framework developed in this study allows development of a model of deregulated electricity markets that explains two familiar empirical findings; the existence of forward premiums and price-cost markups in the spot market. This is a significant contribution because electricity forward premiums have been previously explained exclusively by the assumptions of perfect competition and risk-averse behavior while spot markups are generally the outcome of a body of literature assuming oligopolistic competition. Our theoretical framework indicates that a certain premium for forward contracting is required for efficient allocation of generation capacity. However, due to the uniqueness of electricity and the design of deregulated electricity markets this premium might be substantially higher than its optimal level. - Research highlights: → The state of knowledge regarding modeling electricity markets is incomplete. → Electricity forward premiums are not necessarily driven by risk aversion. → Efficiency in production requires a certain premium for forward contracting. → It is likely that market premiums are substantially higher than their optimal level. → Policy regulation should not seek to eliminate forward premium entirely.

  2. Wholesale electricity markets indicators - September 2013

    International Nuclear Information System (INIS)

    2013-09-01

    The wholesale electricity markets indicators publication aims to provide general monitoring indicators about: wholesale electricity prices, electricity trade between France and neighboring countries, fuel prices, availability and capacity of power generation means, and grid interconnections

  3. Wholesale electricity market indicators - December 2013

    International Nuclear Information System (INIS)

    2013-12-01

    The wholesale electricity markets indicators publication aims to provide general monitoring indicators about: wholesale electricity prices, electricity trade between France and neighboring countries, fuel prices, availability and capacity of power generation means, and grid interconnections

  4. Use of demand response in electricity markets

    DEFF Research Database (Denmark)

    Singh, Sri Niwas; Østergaard, Jacob

    2010-01-01

    Demand response (DR) can provide sufficient measure, if implemented successfully, to provide economic, secure and stable supply to the customers even under the variability of the generated output from renewable energy source such as wind and solar. However, there are several issues to be analyzed...... before DR implementation. This paper critically examines the present practices of the DR in the various electricity markets existing in the world including Europe. The prospect of DR in various market levels such as day-ahead (spot) market, hour-ahead market, real time/regulating market and ancillary...... market is analyzed. This paper also addresses the key issues and challenges in the implementation of DR in the electricity markets....

  5. Gas/electric convergence: the role of marketers

    Energy Technology Data Exchange (ETDEWEB)

    Merritt, M. [Westcoast Gas Services, Vancouver, BC (Canada)

    1997-04-01

    The role of marketers in the convergence of the gas and electric power industry was discussed. Marketers are a byproduct of deregulation. They create competition, increase industry efficiency and lower customer and regulatory costs. To stay in business, marketers must provide customers with what they want. To achieve this, electricity, which is now fully bundled (capacity, generation, energy, transmission, VAR`s, and reliability) must be unbundled. This means that the marketer must strip down the bundle and repackage the components into bundles that meet the customers` needs. The nature of convergence (retailing efficiencies of scale, leveraged growth, price correlation, risk management, arbitrage opportunities) and the forces driving it (the emergence of natural gas as the fuel of choice, marketer`s requirements to manage risk, the influence of arbitrage, consumer-driven price, and the demand for choice) were reviewed. Two practical illustrations, one from Alberta and one from the California/Oregon border area of how gas/electric convergence works in the real world, were described. 4 figs.

  6. Electricity market liberalisation in Europe. Who's got the power?

    International Nuclear Information System (INIS)

    Lise, W.; Linderhof, V.

    2004-10-01

    The European electricity market is in the middle of a transformation from monopolistic state-owned production and distribution to privatised markets, with various competing firms. The speed of privatisation differs widely across Europe from full trade of electricity at the wholesale market in Scandinavian countries, to partial trade on the wholesale market in The Netherlands and Germany, and no trade on the wholesale market in France and Belgium. Hence, the market and its rules are no longer fixed, and the electricity market is in the middle of a dynamic and complex process of change. This report discusses whether the liberalisation process can result in more efficient electricity production in Europe. In addition, the environmental impacts of the liberalisation process are studied. Efficiency of electricity production is analysed with a static computational game theoretic model, which compares strategic options of and interactions among energy suppliers. This model is calibrated to the European electricity market in eight countries, namely Belgium, Denmark, Finland, France, Germany, The Netherlands, Norway, and Sweden. In a liberalised market, large firms are most likely to behave strategically and exercise market power in order to maximise profits. As a result, wholesale prices might increase, partially or fully off-setting the purpose of liberalisation, namely to decrease wholesale prices. Also, a potential market leader may emerge, who by anticipating on the reaction of followers, could acquire higher profits by increasing production and market share. Finally, firms can also acquire passive ownership in other firms. Passive cross-border ownership can increase a firm's market power and profits, resulting in even higher wholesale prices. The environmental impacts of different scenarios of producer behaviour are ambiguous. Under full competition, greenhouse gas emissions decline compared to the initial situation, while acidification and smog formation increase. In

  7. The New Electricity Market of Singapore : regulatory framework, market power and competition

    International Nuclear Information System (INIS)

    Chang, Y.

    2007-01-01

    This study examines whether the New Electricity Market of Singapore (NEMS) is functioning at a workable level of competition. The generation market of the NEMS appears highly concentrated by a four-firm concentration ratio or the Herfindahl-Hirschman Index. However, other measures of market power present that the NEMS is working at close to a competitive market. First, there seems to be a number of effective competitors in the market. Second, Supply Margin Assessment and Residual Supply Index support that the market is competitive though there are some possibilities in which the largest generator or a few large generators jointly could still have market power. Third, the Lerner Index of the NEMS shows that the generation market is fairly competitive and the Lerner Index adjusted with an industry level price elasticity of demand implies that there has not been much exercise of market power. Finally, vesting contracts - a contractual obligation of a specified quantity of electricity supply to the market - have appeared to be a strong and effective tool to mitigate market power in the NEMS. The vesting contracts are considered the force behind the lowering in the average Uniform Singapore Electricity Price and the Lerner Index in 2004. [Author

  8. Reforming the Russian electricity market

    International Nuclear Information System (INIS)

    Valladares, Mayra Rodriguez

    1999-08-01

    Contains Executive Summary and Chapters on: Overview; Russian energy markets; Evolution of the power sector; The electricity market; Regulation and proposed reforms; Politics in the power sector; Economics of the power sector; Regional differences; Foreign involvement; Valuation and company management; Conclusions. (Author)

  9. Market surveillance panel monitoring report on the IMO-administered electricity markets : Executive summary

    International Nuclear Information System (INIS)

    2002-01-01

    The electricity market in Ontario was opened on May 1, 2002. This document provides the executive summary for the first monitoring report prepared by the Market Surveillance Panel covering the period May to August 2002. In the introductory chapter of the main report, explanations are provided on why competition, when effective, benefits consumers, as well as touching on the conditions for the design of an effective competitive electricity market with special emphasis on the electricity market in Ontario and its operations. For the period under review, the report presents a description and analysis of the activities and operations of the Independent Electricity Market Operator (IMO)-administered markets (focus on energy markets). Rising costs for hydroelectric power and very high temperatures combined in July and August resulting in record levels of demand. It became apparent that the province relies on imports to satisfy demand. The figures reveal that reliability in July and August depended on imports 21 per cent of the time. A serious shortage of generating capacity exists in Ontario and steps to rectify the situation should be initiated to ensure reliability of electricity supply for next summer. Prospective entrants in the electricity market in Ontario may not be receiving clear, credible and consistent signals. Effective use of existing or potential transmission capacity may not always be made by the system. The lowering of consumption by consumers is difficult since consumers are not properly equipped, resulting in their lack of power to discipline price increases from suppliers. The future evolution of the market must be planned and measures implemented to enhance the effectiveness of competition. The incentives effects for some aspects of the market design do not completely satisfy the Panel

  10. 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.)

  11. Hedging strategies in energy markets: the case of electricity retailers

    International Nuclear Information System (INIS)

    Boroumand, Raphael Homayoun; Goutte, Stephane; Porcher, Simon; Porcher, Thomas

    2015-01-01

    As market intermediaries, electricity retailers buy electricity from the wholesale market or self-generate for re(sale) on the retail market. Electricity retailers are uncertain about how much electricity their residential customers will use at any time of the day until they actually turn switches on. While demand uncertainty is a common feature of all commodity markets, retailers generally rely on storage to manage demand uncertainty. On electricity markets, retailers are exposed to joint quantity and price risk on an hourly basis given the physical singularity of electricity as a commodity. In the literature on electricity markets, few articles deals on intra-day hedging portfolios to manage joint price and quantity risk whereas electricity markets are hourly markets. The contributions of the article are twofold. First, we define through a VaR and CVaR model optimal portfolios for specific hours (3 a.m., 6 a.m.,...,12 p.m.) based on electricity market data from 2001 to 2011 for the French market. We prove that the optimal hedging strategy differs depending on the cluster hour. Secondly, we demonstrate the significantly superior efficiency of intra-day hedging portfolios over daily (therefore weekly and yearly) portfolios. Over a decade (2001-2011), our results clearly show that the losses of an optimal daily portfolio are at least nine times higher than the losses of optimal intra-day portfolios. (authors)

  12. The Impact of Emissions Trading on the Price of Electricity in Nord Pool : Market Power and Price Determination in the Nordic Electricity Market

    OpenAIRE

    Oranen, Anna

    2006-01-01

    The objective of this thesis is to find out how dominant firms in a liberalised electricity market will react when they face an increase in the level of costs due to emissions trading, and how this will effect the price of electricity. The Nordic electricity market is chosen as the setting in which to examine the question, since recent studies on the subject suggest that interaction between electricity markets and emissions trading is very much dependent on conditions specific to each market ...

  13. The potential for electricity market restructuring in Quebec

    International Nuclear Information System (INIS)

    Clark, C.R.; Leach, A.

    2007-01-01

    Throughout the world, electricity market liberalization has taken place or is currently underway. However, in Canada, the province of Quebec has undertaken limited restructuring measures. Considerable debate as to the potential for further market restructuring has been ongoing. This article discussed the potential for future electricity market restructuring in Quebec where competition in electricity supply has resulted in 3 categories of supply distribution, including a block of energy and power known as the heritage pool. This article considered the political economy of the abolishment if the heritage pool requirement, which caps wholesale prices. The article presented a statistical overview of Quebec's electricity market and discussed the regulatory environment. It also identified the potential for market restructuring and the establishment of a competitive wholesale market. It was concluded that Quebecers could significantly benefit from any restructuring initiative that involved the elimination of the Heritage Pool requirement if the extra rents were properly redistributed and that production sector restructuring would be difficult. 37 refs., 3 tabs., 4 figs

  14. The Effect of Divestitures in the German Electricity Market

    NARCIS (Netherlands)

    Weigt, H.; Willems, Bert

    2011-01-01

    In most liberalized electricity markets, abuse of market power is a concern related to oligopolistic market structures, flaws in market architecture, and the specific characteristics of electricity generation and demand. Several methods have been suggested to improve the competitiveness of the

  15. Electricity prices in the Finnish retail market

    International Nuclear Information System (INIS)

    Lehto, Eero

    2011-01-01

    This study focuses, firstly, on the pricing of electricity in the Finnish retail market. In particular, the impact of the ownership structure on prices is tested empirically. Secondly, the influence of low-cost electricity sources on retail prices is considered. The question about whether the average fuel costs rather than the wholesale price determine the retail prices is thus addressed. The supply side behaviour characterised may explain the passivity of client activity in the seemingly competitive Finnish market. - Research highlights: → Ownership has a strong impact on retail prices in the Finnish electricity market. → Locally owned companies' rates are 5-15 per cent lower than investor owned companies' rates. → Own low cost acquisition of electricity helps local firms to keep prices at low levels.

  16. PRICING ELECTRIC POWER UNDER A HYBRID WHOLESALE MECHANISM: EVALUATING THE TURKISH ELECTRICITY MARKET

    Directory of Open Access Journals (Sweden)

    Hatice Karahan

    2013-01-01

    Full Text Available During the restructuring process, Turkish electricity sector has gone through significant changes both in wholesale and retail markets. In this framework, the Market Financial Settlement Mechanism established for handling market imbalances has become a spot market in time. So, it can be claimed that the wholesale electricity market in Turkey is a hybrid mechanism composed of bilateral contracts and the balancing market. On the other hand, the main target of liberalization program is providing consumers with affordable electric power. Hence, this study attempts to explore the link between retail tariffs for ineligible consumers and prices in the two wholesale mechanisms, in the period after the launch of the day-ahead market. Findings suggest that regulated wholesale prices are more effective in the determination of end-user prices, whereas unregulated ones might have a price reduction effect in case the free market dominates. However, the volatility in spot market prices implies that the sector would better continue with the hybrid mechanism for quite some time.

  17. Short-Term Expectation Formation Versus Long-Term Equilibrium Conditions: The Danish Housing Market

    Directory of Open Access Journals (Sweden)

    Andreas Hetland

    2017-09-01

    Full Text Available The primary contribution of this paper is to establish that the long-swings behavior observed in the market price of Danish housing since the 1970s can be understood by studying the interplay between short-term expectation formation and long-run equilibrium conditions. We introduce an asset market model for housing based on uncertainty rather than risk, which under mild assumptions allows for other forms of forecasting behavior than rational expectations. We test the theory via an I(2 cointegrated VAR model and find that the long-run equilibrium for the housing price corresponds closely to the predictions from the theoretical framework. Additionally, we corroborate previous findings that housing markets are well characterized by short-term momentum forecasting behavior. Our conclusions have wider relevance, since housing prices play a role in the wider Danish economy, and other developed economies, through wealth effects.

  18. Asynchronous decentralized method for interconnected electricity markets

    International Nuclear Information System (INIS)

    Huang, Anni; Joo, Sung-Kwan; Song, Kyung-Bin; Kim, Jin-Ho; Lee, Kisung

    2008-01-01

    This paper presents an asynchronous decentralized method to solve the optimization problem of interconnected electricity markets. The proposed method decomposes the optimization problem of combined electricity markets into individual optimization problems. The impact of neighboring markets' information is included in the objective function of the individual market optimization problem by the standard Lagrangian relaxation method. Most decentralized optimization methods use synchronous models of communication to exchange updated market information among markets during the iterative process. In this paper, however, the solutions of the individual optimization problems are coordinated through an asynchronous communication model until they converge to the global optimal solution of combined markets. Numerical examples are presented to demonstrate the advantages of the proposed asynchronous method over the existing synchronous methods. (author)

  19. 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

  20. On Monte Carlo Simulation and Analysis of Electricity Markets

    International Nuclear Information System (INIS)

    Amelin, Mikael

    2004-07-01

    This dissertation is about how Monte Carlo simulation can be used to analyse electricity markets. There are a wide range of applications for simulation; for example, players in the electricity market can use simulation to decide whether or not an investment can be expected to be profitable, and authorities can by means of simulation find out which consequences a certain market design can be expected to have on electricity prices, environmental impact, etc. In the first part of the dissertation, the focus is which electricity market models are suitable for Monte Carlo simulation. The starting point is a definition of an ideal electricity market. Such an electricity market is partly practical from a mathematical point of view (it is simple to formulate and does not require too complex calculations) and partly it is a representation of the best possible resource utilisation. The definition of the ideal electricity market is followed by analysis how the reality differs from the ideal model, what consequences the differences have on the rules of the electricity market and the strategies of the players, as well as how non-ideal properties can be included in a mathematical model. Particularly, questions about environmental impact, forecast uncertainty and grid costs are studied. The second part of the dissertation treats the Monte Carlo technique itself. To reduce the number of samples necessary to obtain accurate results, variance reduction techniques can be used. Here, six different variance reduction techniques are studied and possible applications are pointed out. The conclusions of these studies are turned into a method for efficient simulation of basic electricity markets. The method is applied to some test systems and the results show that the chosen variance reduction techniques can produce equal or better results using 99% fewer samples compared to when the same system is simulated without any variance reduction technique. More complex electricity market models

  1. The Effect of Divestitures in the German Electricity Market

    NARCIS (Netherlands)

    Weigt, H.; Willems, Bert

    2011-01-01

    In the most liberalized electricity markets, abuse of market power is a concern related to oligopolistic market structures, flaws in market architecture, and the specific characteristics of electricity generation and demand. Several methods have been suggested to improve the competitiveness of the

  2. How Does Pricing of Day-ahead Electricity Market Affect Put Option Pricing?

    Directory of Open Access Journals (Sweden)

    H. Raouf Sheybani

    2016-09-01

    Full Text Available In this paper, impacts of day-ahead market pricing on behavior of producers and consumers in option and day-ahead markets and on option pricing are studied. To this end, two comprehensive equilibrium models for joint put option and day-ahead markets under pay-as-bid and uniform pricing in day-ahead market are presented, respectively. Interaction between put option and day-ahead markets, uncertainty in fuel price, day-ahead market pricing, and elasticity of consumers to strike price, premium price, and day-ahead price are taken into account in these models. By applying the presented models to a test system impact of day-ahead market pricing on equilibrium of joint put option and day-ahead markets are studied.

  3. The electricity market in Croatia and eligible customers

    International Nuclear Information System (INIS)

    Kucic, D.; Baric, A.; Tomasic-Skevin, S.

    2003-01-01

    The paper first presents the model and main characteristics of the Croatian electricity market concerning eligible customers. The first phase of the market opening and the estimated inclusion of eligible customers as well as independent suppliers are also described. Presumed steps of opening of the electricity market are given.(author)

  4. Hourly Electricity Prices in Day-Ahead Markets

    NARCIS (Netherlands)

    R. Huisman (Ronald); C. Huurman; R.J. Mahieu (Ronald)

    2007-01-01

    textabstractThis paper focuses on the characteristics of hourly electricity prices in day-ahead markets. In these markets, quotes for day-ahead delivery of electricity are submitted simultaneously for all hours in the next day. The same information set is used for quoting all hours of the day. The

  5. Electricity Market Manipulation: How Behavioral Modeling Can Help Market Design

    Energy Technology Data Exchange (ETDEWEB)

    Gallo, Giulia [National Renewable Energy Lab. (NREL), Golden, CO (United States)

    2015-12-18

    The question of how to best design electricity markets to integrate variable and uncertain renewable energy resources is becoming increasingly important as more renewable energy is added to electric power systems. Current markets were designed based on a set of assumptions that are not always valid in scenarios of high penetrations of renewables. In a future where renewables might have a larger impact on market mechanisms as well as financial outcomes, there is a need for modeling tools and power system modeling software that can provide policy makers and industry actors with more realistic representations of wholesale markets. One option includes using agent-based modeling frameworks. This paper discusses how key elements of current and future wholesale power markets can be modeled using an agent-based approach and how this approach may become a useful paradigm that researchers can employ when studying and planning for power systems of the future.

  6. Dynamics of the Croatian electricity market opening

    International Nuclear Information System (INIS)

    Pesut, D.; Zeljko, M.; Zutobradic, S.

    2003-01-01

    Customer eligibility is regulated by the Law on Electricity Market and its Article 23 (Official Gazette 79/01). Eligibility is understood as a possible supplier choice. To ensure the eligible status, annual demand should exceed 40 GWh. The category of customers that has gained the eligibility status based on the Law on Electricity Market makes out a total of around 7 percent of the annual electric energy consumption in Croatia. Thus, it can be said that electricity market openness in Croatia lies somewhat below 10 percent. According to the already mentioned Article 23, paragraph 4, the Government may determine annual demand threshold lowering as a condition to grant the eligibility status. According to the Law on Gas Market from 2001, the category of eligible gas customers in Croatia includes all electricity generators who use gas, regardless of the annual gas consumption, and other customers whose annual consumption exceeds 100 million m3. In 2002 there were seven such customers and they participated with 1,374,160,000 m3, i.e. 51 percent in the total gas consumption. As INA is the sole natural gas producer in Croatia with a long-term contract on the supply line lease for the transportation of Russian gas, it is also the only supplier of natural gas. Therefore, in 2002 each eligible customer bought gas from INA. Issues related to this field are: what kind of dynamics should one proceed with toward further energy market opening in Croatia? How large is this share of electricity, i.e. gas consumption in Croatia? What are the prerequisites, both organisational and technical, for this kind of market opening? (author)

  7. The market for wireless electricity: The case of India

    Energy Technology Data Exchange (ETDEWEB)

    Kumar, Ashish, E-mail: ashish.kumar@nsn.co [Nokia Siemens Networks, 438 B Alexandra Road, Alexandra Technopark Block B, Singapore 119968 (Singapore); Shankar, Ravi, E-mail: ravi1@dms.iitd.ac.i [Department of Management Studies, IIT Delhi, New Delhi 110016 (India); Momaya, Kiran, E-mail: momaya@dms.iitd.ac.i [Department of Management Studies, IIT Delhi, New Delhi 110016 (India); Gupte, Sandeep, E-mail: Sandeep.gupte@industowers.co [Indus Towers, Building No. 10, Tower A, 4th floor, DLF Cyber City, Gurgaon 122002 (India)

    2010-03-15

    A wireless revolution has transformed telecoms in India and in other emerging markets. The electricity market, on the other hand, remains underdeveloped. We define Wireless Electricity as renewable energy produced within a few hundred meters of the point of consumption. A wireless revolution in electricity would solve the problem of electricity deficit, empower people at the bottom of the pyramid and mitigate the environmental impact of bringing hundreds of millions out of poverty as the Indian economy grows. Renewables are technically proven and economically viable in certain situations, but their use remains peripheral. The stark difference in the diffusion patterns in telecoms and electricity has been ignored by leaders in government, business and academics. We present common frameworks to explain the different directions of reform in telecoms and electricity. We explain some of the dynamics which prevent the diffusion of Wireless Electricity. We use a causal loop diagram to explain the status quo in the off-grid electricity market and propose changes which will lead to the formation of a market for Wireless Electricity. India has the entrepreneurial talent to develop this market-and the largest number of potential customers. The world will benefit as a result.

  8. The market for wireless electricity. The case of India

    Energy Technology Data Exchange (ETDEWEB)

    Kumar, Ashish [Nokia Siemens Networks, 438 B Alexandra Road, Alexandra Technopark Block B, Singapore 119968 (Singapore); Shankar, Ravi; Momaya, Kiran [Department of Management Studies, IIT Delhi, New Delhi 110016 (India); Gupte, Sandeep [Indus Towers, Building No. 10, Tower A, 4th floor, DLF Cyber City, Gurgaon 122002 (India)

    2010-03-15

    A wireless revolution has transformed telecoms in India and in other emerging markets. The electricity market, on the other hand, remains underdeveloped. We define Wireless Electricity as renewable energy produced within a few hundred meters of the point of consumption. A wireless revolution in electricity would solve the problem of electricity deficit, empower people at the bottom of the pyramid and mitigate the environmental impact of bringing hundreds of millions out of poverty as the Indian economy grows. Renewables are technically proven and economically viable in certain situations, but their use remains peripheral. The stark difference in the diffusion patterns in telecoms and electricity has been ignored by leaders in government, business and academics. We present common frameworks to explain the different directions of reform in telecoms and electricity. We explain some of the dynamics which prevent the diffusion of Wireless Electricity. We use a causal loop diagram to explain the status quo in the off-grid electricity market and propose changes which will lead to the formation of a market for Wireless Electricity. India has the entrepreneurial talent to develop this market - and the largest number of potential customers. The world will benefit as a result. (author)

  9. The market for wireless electricity: The case of India

    International Nuclear Information System (INIS)

    Kumar, Ashish; Shankar, Ravi; Momaya, Kiran; Gupte, Sandeep

    2010-01-01

    A wireless revolution has transformed telecoms in India and in other emerging markets. The electricity market, on the other hand, remains underdeveloped. We define Wireless Electricity as renewable energy produced within a few hundred meters of the point of consumption. A wireless revolution in electricity would solve the problem of electricity deficit, empower people at the bottom of the pyramid and mitigate the environmental impact of bringing hundreds of millions out of poverty as the Indian economy grows. Renewables are technically proven and economically viable in certain situations, but their use remains peripheral. The stark difference in the diffusion patterns in telecoms and electricity has been ignored by leaders in government, business and academics. We present common frameworks to explain the different directions of reform in telecoms and electricity. We explain some of the dynamics which prevent the diffusion of Wireless Electricity. We use a causal loop diagram to explain the status quo in the off-grid electricity market and propose changes which will lead to the formation of a market for Wireless Electricity. India has the entrepreneurial talent to develop this market-and the largest number of potential customers. The world will benefit as a result.

  10. The surveillance of the electricity wholesale market and emission trading market

    International Nuclear Information System (INIS)

    Luedemann, Volker

    2015-01-01

    The Regulation on Wholesale Market Integrity and Transparency (REMIT) and the German Law on the Establishment of a Market Transparency Office for Wholesale Trade in Electricity and Gas (MTS-G) have fundamentally changed the surveillance of electricity wholesale trade in Germany. From now on the Federal Network Agency and the Federal Cartel Office will be jointly responsible for monitoring the electricity wholesale trade for suspicious market phenomena and abusive behaviour. The REMIT specifies that the electricity trade must be surveilled ''with due consideration to interactions'' with the emission trade system. However, occurrences observed in recent years have shown that the emission trading system is in need of reform. This has also been recognised and has prompted extensive corrective action by the regulatory authorities of the European Union. These changes have yet to be transposed into the national surveillance regimes. The present article explains why the new role accorded to the Federal Network Agency under the REMIT fails to eliminate the structural shortcomings of the old surveillance system. At least the decision to put the collection and evaluation of data exclusively in the hands of the market transparency office and the cooperation this will prompt between the supervisory authorities responsible will make the task of surveilling the energy wholesale trading market a lot easier for the authorities. The energy transition and its exigencies will yet lead to further changes in the market and its surveillance regime.

  11. Protecting consumer interests in Alberta's deregulated electricity market

    International Nuclear Information System (INIS)

    Bradford, J.A.

    2003-01-01

    This paper explains why the province of Alberta decided to deregulate its electricity sector. In the early 1990s, electricity rates were reasonable in Alberta, there was no utility debt, and electricity costs were low. In 1994 California's open access transmission system suggested that open markets would result in lower electricity rates and attract new economic activity. The government of Alberta also believed that competitive markets would set prices with no need for economic regulation. In the initial transition to competition, regulated electricity rates were offered to customers who were not ready to switch to the new competitive market. The RRO rate was set by the Alberta Energy and Utilities Board (EUB). The rates included the forecasted cost of purchasing energy from markets, cost of system access, and retail service costs. The end of the RRO rate was scheduled for 2005 when the market was expected be well developed. This paper also describes other protection mechanisms for consumers. Alberta's new electricity policy (NEP) eliminates generator participant costs related to transmission. EUB's zonal interconnection charges are also overruled along with the EUB-approved 50/50 division of transmission costs. Under the NEP, the ISO is to build transmission in anticipation of new generation. Consumers will fund the total cost to build new transmission capacity for exports and imports. This new transmission policy is a complete change from the original government policy which allocated some transmission costs to generators. The sudden change in policy was due to pressure from oil sands producers and oil sands co-generation developers. The claimed benefit to Albertans is a 25 per cent reduction in pool price and greater system reliability. However, the author cautioned that government interference with competitive electricity markets will cripple the electric power industry in the foreseeable future because it interferes with market prices

  12. Reforming British Columbia's electricity market: A way forward. Final report

    International Nuclear Information System (INIS)

    1998-01-01

    This report begins with background on developments in electricity market structure and customer access, recent electricity market developments in British Columbia, factors driving change in that market, key elements of electricity market reform, and the work of the task force appointed to propose such reform. It then presents a consensus proposal for reform from the task force. The proposal has four major elements: Increasing customer access; transition toward a vertically de-integrated market structure; ensuring that social values associated with the existing electricity market are protected and enhanced; and environmental concerns (increasing energy efficiency and favoring the development of environmentally desirable electricity generation technologies). Finally, the proposals are evaluated against the task force terms of reference. Includes glossary

  13. Electricity market design for facilitating the integration of wind energy. Experience and prospects with the Australian National Electricity Market

    International Nuclear Information System (INIS)

    MacGill, Iain

    2010-01-01

    Australia has been an early and enthusiastic adopter of both electricity industry restructuring and market-based environmental regulation. The Australian National Electricity Market (NEM) was established in 1999 and Australia also implemented one of the world's first renewable energy target schemes in 2001. With significant recent growth in wind generation, Australia provides an interesting case for assessing different approaches to facilitating wind integration into the electricity industry. Wind project developers in Australia must assess both potential energy market and Tradeable Green Certificate income streams when making investments. Wind-farm energy income depends on the match of its uncertain time varying output with the regional half hourly market price; a price that exhibits daily, weekly and seasonal patterns and considerable uncertainty. Such price signals assist in driving investments that maximize project value to the electricity industry as a whole, including integration costs and benefits for other participants. Recent NEM rule changes will formally integrate wind generation in the market's scheduling processes while a centralized wind forecasting system has also been introduced. This paper outlines experience to date with wind integration in the NEM, describes the evolution of market rules in response and assesses their possible implications for facilitating high future wind penetrations. (author)

  14. Modeling spot markets for electricity and pricing electricity derivatives

    Science.gov (United States)

    Ning, Yumei

    Spot prices for electricity have been very volatile with dramatic price spikes occurring in restructured market. The task of forecasting electricity prices and managing price risk presents a new challenge for market players. The objectives of this dissertation are: (1) to develop a stochastic model of price behavior and predict price spikes; (2) to examine the effect of weather forecasts on forecasted prices; (3) to price electricity options and value generation capacity. The volatile behavior of prices can be represented by a stochastic regime-switching model. In the model, the means of the high-price and low-price regimes and the probabilities of switching from one regime to the other are specified as functions of daily peak load. The probability of switching to the high-price regime is positively related to load, but is still not high enough at the highest loads to predict price spikes accurately. An application of this model shows how the structure of the Pennsylvania-New Jersey-Maryland market changed when market-based offers were allowed, resulting in higher price spikes. An ARIMA model including temperature, seasonal, and weekly effects is estimated to forecast daily peak load. Forecasts of load under different assumptions about weather patterns are used to predict changes of price behavior given the regime-switching model of prices. Results show that the range of temperature forecasts from a normal summer to an extremely warm summer cause relatively small increases in temperature (+1.5%) and load (+3.0%). In contrast, the increases in prices are large (+20%). The conclusion is that the seasonal outlook forecasts provided by NOAA are potentially valuable for predicting prices in electricity markets. The traditional option models, based on Geometric Brownian Motion are not appropriate for electricity prices. An option model using the regime-switching framework is developed to value a European call option. The model includes volatility risk and allows changes

  15. Energy market for energy. Natural gas and electricity

    International Nuclear Information System (INIS)

    Van Scherpenzeel, H.; De Boer, I.

    2000-10-01

    The aim of the title market study is to provide insight into the energy market in Argentina for the Dutch industry and business sector, focusing on the structure of the natural gas and electricity sector and the market for equipment for the production and processing of natural gas and equipment for electricity generation

  16. The electricity market in transition: a decoding

    International Nuclear Information System (INIS)

    Mathieu, Mathilde; Schwarz, Virginie; Chapon, Antoine; Fouquet, Doerte; Joos, Marine; Jedliczka, Marc; Siess, Damien

    2015-01-01

    A set of article proposes a discussion of the main challenges for energy transition for the architecture of the European electricity market, an interview of the responsible of the energy department within the French ministry of ecology (she addresses the issues of market, electricity system, renewable energies), a discussion of the first lessons learned from the integration of renewable energies in the electricity market, a comment on hazardous evolutions for independent producers, a discussion of the pilot stage for bidding in Germany, a discussion of false ideas and true challenges in the relationship between demand management and integration, a comment on the evolution towards a complete reform of the support system for renewable energies, and a discussion of the perspectives beyond 40 per cent of renewable energies in the French electricity mix

  17. Failing electricity markets: should we shoot the pools?

    International Nuclear Information System (INIS)

    Green, Richard

    2003-01-01

    This paper discusses the electricity reforms in California and in England and Wales. In both cases, a centralised spot market played a major role, and both markets have now been abolished. This paper argues that their disappearance is not evidence that future electricity restructuring should avoid the use of spot markets. Instead, the problems in England and Wales were largely due to market power. In California, problems arising from market power and a tightening demand-supply balance were turned into a disaster because the spot market had not been backed up by hedging contracts. (Author)

  18. Why has the Nordic electricity market worked so well

    International Nuclear Information System (INIS)

    Bergman, Lars

    2005-06-01

    There are two major threats to the success of electricity market reform in the Nordic countries. The first is that security of supply can not be maintained. The second is that market power prevents the potential benefits of competition to be realized. So far security of supply has been maintained, although exceptional storms have created serious problems in electricity distribution. The major power companies have been accused of exercising market power, but convincing proofs are lacking. At the same time power industry productivity has increased, and retail electricity prices (before tax) have become strongly linked to wholesale electricity prices. The situation may change in the future. Thus it remains to be seen that investments in new capacity are carried out when they are needed, and that mergers and capacity expansion do not significantly increase concentration and market power. But the development of the Nordic electricity market so far to a large extent is quite successful. Does this mean that the 'Nordic model' should be adopted all over the world? The answer is 'no'. In many ways the success of the Nordic model depends on area specific factors such as ample supply of hydropower and significant inter-connector capacities. Yet there are some 'universal' lessons that can be learned from the Nordic experiences. In particular the Nordic experiences suggest that a 'deregulated' market for electricity works well if: There are no price regulations and constraints on the development of financial markets; There is continued political support for a market based electricity supply system also when electricity is scarce and prices are high

  19. The new electricity trading arrangements: prospects for market development

    International Nuclear Information System (INIS)

    Anon

    1999-09-01

    This Briefing Paper from OXERA argues that the OFGEM proposals will not solve the fundamental market problems and might even make things worse. They focus too narrowly on the technical design of one small part of the market (the Balancing Mechanism and associated imbalance settlement process), without considering the market context and dynamics. OXERA argues that the central emphasis of the White Paper was misplaced: reform of the electricity trading arrangements, the basis of the government's strategy, will not solve the upstream and downstream market problems. The Briefing Paper includes analysis of: the structure and operation of the proposed new electricity trading arrangements; risk in the electricity wholesale market, and the responses of market participants; the interaction between the new trading arrangements and other energy market developments - in particular, vertical integration between generators and suppliers; energy supply competition, and wider government policy; the prospects for market development under the new electricity trading arrangements. (author)

  20. Towards electricity markets accommodating uncertain offers

    DEFF Research Database (Denmark)

    Papakonstantinou, Athanasios; Pinson, Pierre

    2014-01-01

    formulation of an electricity market, based on the Continuous Ranked Probability Score (CRPS) reduces the impact of poor estimates for both the stochastic producers and the system operator. We introduce a simulation setting which first demonstrates that impact and then proceed to illustrate the main features......The use of renewable energy sources of energy and in particular wind and solar has been on the rise over the last decades with plans to increase it even more. Such developments introduce significant challenges in existing power systems and can result in high electricity prices and costly...... infrastructure investments. In this paper we propose a new electricity market mechanism whereby the uncertain and dynamic nature of wind power and other stochastic sources is embedded in the market mechanism itself, by modelling producers’ bids as probabilistic estimates. An extension on the bilevel programming...

  1. Applicability Analysis of Bidding Strategy in Electricity Market

    OpenAIRE

    Zhou Suyan; Chen Fei; Qiao Yahui; Zhang Wenzhe; Zhang Kaifeng; Yuan Kun; Dai Xuemei

    2017-01-01

    With the development of the electricity market, competition has been introduced in the generation side. It is the overall development trend of the electricity market reformulation to optimize the allocation of different resources through bidding. Therefore, it is significant to research the bidding strategies of the generation companies and the large consumers. This paper reviews the existing research methods of bidding strategy. According to the different market mechanisms, the market partic...

  2. European Electricity Markets in Crisis: Diagnostic and Way Forward

    International Nuclear Information System (INIS)

    Roques, Fabien

    2013-01-01

    The European electricity industry is going through a profound crisis as several factors combine to create a challenging operating environment for thermal plants. The key issue is that the regulatory and market framework create a climate of deep policy and regulatory uncertainty which will hamper investments and will not deliver on the long term objectives of decarbonization and competitiveness of the European economy. This report analyses both the short and long term challenges for the European electricity markets, and highlights some directions for reform. The report has three main parts. The first part describes the current status quo and challenges associated with the long term decarbonization of the European economy: Section 1 sets the scene by describing the current challenges for the European electricity industry and the challenges associated with the long term decarbonization of the European economy; Section 2 quantifies the investment challenge for the electricity industry and shows how the current regulatory uncertainty undermines investments and will likely not deliver on the stated policy objectives; The second part of the report focusses on the 'extrinsic' issues which affect electricity markets: Section 3 reviews the wider context for electricity market liberalization, which calls for a rethink of the European energy policy framework, including the recent developments in global energy markets, as well as the impact of rising energy prices on economic competitiveness; Section 4 presents the distortive effects of support policies for low carbon technologies and the issues with the European carbon Trading Scheme; The third and last part of the report concentrates on the 'intrinsic issues' with electricity markets: Section 5 details the experience to date with European electricity markets liberalization, and highlights the achievements as well as the shortcomings of the liberalization and integration process; Section 6 dwells into the 'intrinsic issues

  3. 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...

  4. Distributed generation in European electricity markets. Current challenges and future opportunities

    Energy Technology Data Exchange (ETDEWEB)

    Ropenus, S. (Technical Univ. of Denmark, Risoe National Lab. for Sustainable Energy. Systems Analysis Div., Roskilde (Denmark))

    2010-07-01

    This Ph.D. thesis studies the role of distributed generation in European electricity markets. It focuses primarily on the interactions of economics and policy with the aim of contributing to the understanding of how distributed generation is embedded in the present regulatory and market framework, which barriers exist, and which role it may possibly play in the future. To capture the interdisciplinarity of the topic, a combination of qualitative and quantitative methods is applied. Subsequent to the identification of barriers, this thesis turns to the microeconomic perspective on the interplay of vertical structure, regulation and distributed generation. This is done through the application of quantitative methods in the form of partial equilibrium models focusing on the effects induced by the vertical structure of the network operator, either a combined operator or a distribution system operator, in a market with small distributed producers. In areas where the promotion of renewable energy sources and combined heat and power has induced a substantial increase in distributed generation, new challenges in system integration arise. In particular, high levels of generation from intermittent energy sources, such as wind, add to the complexity of network operation and control, which can hardly be tackled with the present 'fit and forget' approach. The conclusion is that distributed generation has great potential to enhance competitiveness, sustainability and security of supply in European electricity markets. A prerequisite is the removal of market and regulatory barriers, taking the interdependencies of vertical structure, support mechanisms and network access into account. In the future, higher penetration levels of distributed generation necessitate changes in the power system and the adoption of new technologies, where hydrogen production by grid connected electrolysis constitutes one example. (LN)

  5. A Dynamic Market Mechanism for Markets with Shiftable Demand Response

    DEFF Research Database (Denmark)

    Hansen, Jacob; Knudsen, Jesper Viese; Kiani, Arman

    2014-01-01

    renewables, this mechanism accommodates both consumers with a shiftable Demand Response and an adjustable Demand Response. The overall market mechanism is evaluated in a Day Ahead Market and is shown in a numerical example to result in a reduction of the cost of electricity for the consumer, as well......In this paper, we propose a dynamic market mechanism that converges to the desired market equilibrium. Both locational marginal prices and the schedules for generation and consumption are determined through a negotiation process between the key market players. In addition to incorporating...

  6. Measuring the impact of market coupling on the Italian electricity market

    International Nuclear Information System (INIS)

    Pellini, Elisabetta

    2012-01-01

    This paper evaluates the impact on the Italian electricity market of replacing the current explicit auction mechanism with market coupling. Maximising the use of the cross-border interconnection capacity, market coupling increases the level of market integration and facilitates the access to low-cost generation by consumers located in high-cost generation countries. Thus, it is expected that a high-priced area such as Italy could greatly benefit from the introduction of this mechanism. In this paper, the welfare benefits are estimated for 2012 under alternative market scenarios, employing the optimal dispatch model ELFO++. The results of the simulations suggest that the improvement in social surplus is likely to be significant, especially when market fundamentals are tight. - Highlights: ► We study the impact on the Italian electricity market of introducing market coupling. ► We estimate welfare benefits under two market scenarios for 2012. ► Scenarios are simulated using the optimal dispatch model ELFO++. ► Welfare gains range between 33 M€/year and 741 M€/year.

  7. Enabling Communications in Heterogeneous Multi-Agent Systems: Electricity Markets Ontology

    Directory of Open Access Journals (Sweden)

    Gabriel SANTOS

    2016-11-01

    Full Text Available Electricity markets worldwide are complex and dynamic environments with very particular characteristics, resulting from their restructuring and evolution into regional and continental scales, along with the constant changes brought by the increasing necessity for an adequate integration of renewable energy sources. The rising complexity and unpredictability in electricity markets has increased the need for the intervenient entities in foreseeing market behaviour. Several modelling tools directed to the study of restructured wholesale electricity markets have emerged. However, they have a common limitation: the lack of interoperability between the various systems to allow the exchange of information and knowledge, to test different market models and to allow market players from different systems to interact in common market environments. This paper proposes the Electricity Markets Ontology, which integrates the essential necessary concepts related with electricity markets, while enabling an easier cooperation and adequate communication between related systems. Additionally, it can be extended and complemented according to the needs of other simulators and real systems in this area

  8. 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

  9. 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.

  10. Liberalization of the Swiss electricity and gas market

    International Nuclear Information System (INIS)

    Cattin, J.

    1999-01-01

    The Swiss government intends to liberalize the electricity and gas market. Competition is to be introduced in the electricity sector first because the European Union is also giving priority to this industry. Moreover, electricity prices in Switzerland are too high. The principle of market liberalization is not contested, but the route to be taken to achieve this goal is a matter of heated controversy. Opinions on the power line network, non-amortizable investments, hydropower plants or the pace of market liberalization still differ too widely. Liberalization of the gas market is also in preparation, but the problems here are less complex. This is because competition already exists on the heating market. In addition, domestic gas prices are not much higher than those charged in other countries. (author)

  11. Impact of renewables on electricity markets – Do support schemes matter?

    International Nuclear Information System (INIS)

    Winkler, Jenny; Gaio, Alberto; Pfluger, Benjamin; Ragwitz, Mario

    2016-01-01

    Rising renewable shares influence electricity markets in several ways: among others, average market prices are reduced and price volatility increases. Therefore, the “missing money problem” in energy-only electricity markets is more likely to occur in systems with high renewable shares. Nevertheless, renewables are supported in many countries due to their expected benefits. The kind of support instrument can however influence the degree to which renewables influence the market. While fixed feed-in tariffs lead to higher market impacts, more market-oriented support schemes such as market premiums, quota systems and capacity-based payments decrease the extent to which markets are affected. This paper analyzes the market impacts of different support schemes. For this purpose, a new module is added to an existing bottom-up simulation model of the electricity market. In addition, different degrees of flexibility in the electricity system are considered. A case study for Germany is used to derive policy recommendations regarding the choice of support scheme. - Highlights: •Renewable support schemes matter regarding the impact on electricity markets. •Market-oriented support schemes reduce the impact on electricity markets. •More flexible electricity systems reduce the need for market participation. •Sliding premiums combine market integration with a productive risk allocation.

  12. In search of the perfect electricity market

    International Nuclear Information System (INIS)

    De Vries, L.; Correlje, A.

    2008-01-01

    Nearly twelve years after the first electricity directive (Directive 96/92/EC), the European electricity sector is still fragmented along national borders. Within national or regional markets, competition has generally not developed as much as had been expected. The authors argue that progress is possible, but that we also have to learn to accept the inevitable imperfections of the integration process. Two questions are addressed in this article: (1) Why is every market designed in a different way?; and (2) How can the integration of European power markets be furthered, given the current diversity of market designs?

  13. Electricity spot price forecasting in free power market

    International Nuclear Information System (INIS)

    Lilleberg, J.; Laitinen, E.K.

    1998-01-01

    Deregulation has brought many changes to the electricity market. Freedom of choice has been granted to both the consumers and the utilities. Consumers may choose the seller of their energy. Utilities have a wider array of sources to acquire their electricity from. Also the types of sales contracts used are changing to fill the needs of this new situation. The consumers' right to choose has introduced a new risk uncertainty of volume, which was not true during the times of monopoly. As sold volume is unsure and the energy is not sold on same terms as it is bought, a price risk has to be dealt with also. The electric utility has to realize this, select a risk level that suits its business strategy and optimize its actions according to the selected risk level. The number of participants will grow as the electricity market integrates into a common market for Scandinavia and even Europe. Big customers are also taking a more active role in the market, further increasing the number of participants. This makes old bilateral arrangements outdated. New tools are needed to control the new business environment. The goal of this project has been to develop a theoretical model to predict the price in the Finnish electricity exchange, El-Ex Oy. An extensive literature review was conducted in order to (1) examine the solutions in deregulation of electricity markets in other countries, esp. in Norway and UK, (2) find similarities and differences in electricity exchange and exchanges generally and (3) find major sources of problems and inefficiency in the market

  14. Electricity spot price forecasting in free power market

    Energy Technology Data Exchange (ETDEWEB)

    Lilleberg, J; Laitinen, E K [Vaasa Univ. (Finland)

    1998-08-01

    Deregulation has brought many changes to the electricity market. Freedom of choice has been granted to both the consumers and the utilities. Consumers may choose the seller of their energy. Utilities have a wider array of sources to acquire their electricity from. Also the types of sales contracts used are changing to fill the needs of this new situation. The consumers` right to choose has introduced a new risk uncertainty of volume, which was not true during the times of monopoly. As sold volume is unsure and the energy is not sold on same terms as it is bought, a price risk has to be dealt with also. The electric utility has to realize this, select a risk level that suits its business strategy and optimize its actions according to the selected risk level. The number of participants will grow as the electricity market integrates into a common market for Scandinavia and even Europe. Big customers are also taking a more active role in the market, further increasing the number of participants. This makes old bilateral arrangements outdated. New tools are needed to control the new business environment. The goal of this project has been to develop a theoretical model to predict the price in the Finnish electricity exchange, El-Ex Oy. An extensive literature review was conducted in order to (1) examine the solutions in deregulation of electricity markets in other countries, esp. in Norway and UK, (2) find similarities and differences in electricity exchange and exchanges generally and (3) find major sources of problems and inefficiency in the market

  15. Dynamic pricing in the spanish gasoline market. A tacit collusion equilibrium

    International Nuclear Information System (INIS)

    Perdiguero Garcia, Jordi

    2010-01-01

    During the last twenty years, the Spanish petrol market has undergone an intensive restructuration process; it has changed from being a state-owned monopoly to total liberalization and privatization. This liberalization process was accompanied by measures that facilitated the creation of a 'national champion', the Repsol Group, which is a huge, vertically integrated company with a high market share in all the industry's segments. Using a dynamic model, this paper analyses whether the prices established by companies in the Spanish gasoline market, after the restructuration process, fits with a tacit collusion equilibrium. The empirical results show that a strategic behaviour of companies occurs and is compatible with a tacit collusion price strategy. So, the restructuration process does not seem to have introduced effective competition into the Spanish gasoline market. (author)

  16. Review of the timetable for gas and electricity market liberalisation

    International Nuclear Information System (INIS)

    2000-01-01

    The findings of the review undertaken by PA Consulting Group on behalf of the Ministry of Economic Affairs into the feasibility of accelerating electricity and gas market liberalisation in the Netherlands are set out. The main purpose of the review was to assess the technical and organisational requirements for the two markets and to consider the time required to deliver them. The chosen market models for electricity and gas liberalisation, as set out in the Electricity Act and the draft Gas Act, were to be taken as given. A review of the market models chosen and consideration of how the markets should be delivered were excluded from the study. The results of this review have been used by the Ministry of Economic Affairs as input into the decision making process regarding the revised opening dates for the electricity and gas markets for both medium size and small customers. The report includes: A description of the market models for electricity and gas; The technical and organisational requirements and progress to date; The time required to deliver each of the two markets; and The benefits and disadvantages of synchronising gas and electricity market openings and recommended timescales

  17. French dissatisfactions on the European electricity market

    International Nuclear Information System (INIS)

    Glachant, J.M.

    2007-01-01

    The author first notices that the French electricity professional consumers are dissatisfied with the results of the creation of the European domestic electricity market in 1997: price increase either on bills or on the wholesale markets, and even more price increases are to come. The author proposes to examine several issues: what has been done during the 6 or 7 past years, that is since the California crisis in 2000-2001, to put the European electrical reforms on a virtuous track? Have the basic market economy principles been respected to protect competitiveness of all energy consumer professionals? How and why the French government or EDF will make us pay gas, coal or CO 2 emission permits like in England or Germany whereas the French electricity production has mainly (90 or 95 per cent) a nuclear or hydraulic origin?

  18. Electricity wholesale market prices in Europe: Convergence?

    International Nuclear Information System (INIS)

    Zachmann, Georg

    2008-01-01

    This paper tests the hypothesis that the ongoing restructuring process in the European electricity sector has led to a common European market for electricity. Based on a Principal Component Analysis (PCA) of wholesale electricity prices in 2002-2006, we reject the assumption of full market integration. For several pairs of countries, the weaker hypothesis of (bilateral) convergence is accepted based on unit root tests (KPSS and ADF) and a convergence test based on filtered pairwise price relations. This indicates that the efforts to develop a single European market for electricity were so far only partially successful. We show that the daily auction prices of scarce cross-border transmission capacities are insufficient to explain the persistence of international price differentials. Empirically, our findings confirm the insufficiency of explicit capacity auctions as stated in the theoretical literature. (author)

  19. 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

  20. General Equilibrium in a Segmented Market Economy with Convex Transaction Cost: Existence, Efficiency, Commodity and Fiat Money

    OpenAIRE

    Starr, Ross M.

    2002-01-01

    This study derives the monetary structure of transactions, the use of commodity or fiat money, endogenously from transaction costs in a segmented market general equilibrium model. Market segmentation means there are separate budget constraints for each transaction: budgets balance in each transaction separately. Transaction costs imply differing bid and ask (selling and buying) prices. The most liquid instruments are those with the lowest proportionate bid/ask spread in equilibrium. Exist...

  1. Why has the Nordic electricity market worked so well

    Energy Technology Data Exchange (ETDEWEB)

    Bergman, Lars [Stockholm School of Economics (Sweden)

    2005-06-01

    There are two major threats to the success of electricity market reform in the Nordic countries. The first is that security of supply can not be maintained. The second is that market power prevents the potential benefits of competition to be realized. So far security of supply has been maintained, although exceptional storms have created serious problems in electricity distribution. The major power companies have been accused of exercising market power, but convincing proofs are lacking. At the same time power industry productivity has increased, and retail electricity prices (before tax) have become strongly linked to wholesale electricity prices. The situation may change in the future. Thus it remains to be seen that investments in new capacity are carried out when they are needed, and that mergers and capacity expansion do not significantly increase concentration and market power. But the development of the Nordic electricity market so far to a large extent is quite successful. Does this mean that the 'Nordic model' should be adopted all over the world? The answer is 'no'. In many ways the success of the Nordic model depends on area specific factors such as ample supply of hydropower and significant inter-connector capacities. Yet there are some 'universal' lessons that can be learned from the Nordic experiences. In particular the Nordic experiences suggest that a 'deregulated' market for electricity works well if: There are no price regulations and constraints on the development of financial markets; There is continued political support for a market based electricity supply system also when electricity is scarce and prices are high.

  2. Growth strategies of electric utilities in context of deregulation and liberalization of electricity market

    Directory of Open Access Journals (Sweden)

    Maria Đogić

    2017-01-01

    Full Text Available This paper identifies the growth strategies adopted by the electric utilities sector in the context of changes resulting from the deregulation and liberalization of the electricity market. Strategies pursued by the electric utilities sector were rarely the subject of research in the field of strategic management despite the fact that electricity is an indispensable element of everyday life and the economy as a whole. Therefore, a case study of the largest incumbent electric utilities in the Republic of Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Montenegro, and Macedonia has been conducted, and differences in the degree of market liberalization and core features of these companies have been noted. Research findings have shown that the degree of deregulation can affect the growth strategies of electric utilities. In those countries where the degree of deregulation is lower, electric utilities focus on the domestic market. On the other hand, a higher level of deregulation enables electric utilities to achieve their growth through diversification or innovation. Given the fact that the analyzed electric utilities are operating within relatively small economies, they cannot compete with electric utilities in developed countries, and, apart from international electricity trading, are mostly focused on their domestic markets.

  3. Insurance-markets Equilibrium with Sequential Non-convex Straight-time and Over-time Labor Supply

    OpenAIRE

    Vasilev, Aleksandar

    2016-01-01

    This note describes the lottery- and insurance-market equilibrium in an economy with non-convex straight-time and overtime employment. In contrast to Hansen and Sargent (1988), the overtime-decision is a sequential one. This requires two separate insurance market to operate, one for straight-time work, and one for overtime. In addi- tion, given that the labor choice for regular and overtime hours is made in succession, the insurance market for overtime needs to open once the insurance market ...

  4. 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.)

  5. Impact of electricity market deregulation on information systems

    International Nuclear Information System (INIS)

    Pharabod, E.; Berrier, M.

    2005-01-01

    Electricity market deregulation is based on un-bundling of activities between generation, transmission and distribution. In a very short time, mechanisms were put in place in order to allow the new market participants to buy and sell electricity. The market operation requires to exchange information at various time horizon, from yearly to real time exchanges, between various actors geographically distributed. The recent market opening to professional customers has also increased the amount of data involved. The information system developed by RTE to manage these data is organised around referential data base, internal and external exchange tools. It must be operated respecting confidentiality of commercial data and being non discriminatory with actors. The security of this information system is now a key issue for the electricity market operation. (authors)

  6. Chain governance in the market for electricity. A vision on how to deal with dependencies in the present and future Dutch electricity market

    International Nuclear Information System (INIS)

    Van Duren, M.

    2006-10-01

    The objective of this study is to develop a vision on the organization of the chain governance model for the electricity market in the present and in the future. Chapter 2 describes the complex electricity market, addressing the dependencies between market parties. Chapter 3 describes how enterprises can offer security internally with respect to reliability of processes and information, based on theory about 'governance' and internal management. Chapter 4 describes how external security can be offered in the electricity market based on theory about chains, networks and governance. Chapter 5 analyses the organization of the chain governance model in the current elecricity market. The developments that are anticipated affect the dependencies. Combined with the analysis a vision is formulated for organizing the chain governance model in view of offering security for the future electricity market. [mk] [nl

  7. Market readiness update : updated status of preparations for Ontario's competitive retail electricity market

    International Nuclear Information System (INIS)

    2002-01-01

    The Market Readiness Project Team of the Ontario Energy Board (OEB) is instrumental in ensuring the readiness of retail participants in Ontario's competitive electricity market. The team, led by the Independent Electricity Market Operator (IMO), provides information and advice regarding the technical readiness of the retail industry, with particular focus on the readiness of distributors to carry out their roles in a competitive market. This report provides an assessment of the team regarding the industry's technical readiness based on information as of April 24, 2002. In January 2002, the Ontario Government announced that it would open the electricity industry to competition on May 1, 2002. 54 of Ontario's 94 licensed electricity distributors claimed they were ready to offer retail choice by May 1. As of March 2002, about 858,000 customers (or 20 per cent of Ontario's 4.2 million customers) had signed a retail electricity contract with one of 9 active electricity retailers. By April 2002, 73 distributors, representing 93 per cent of Ontario's customers signed a contract with a retailer. Those customers who choose not to sign a contract will continue to receive service from their distributor but at energy prices set hourly by the IMO. It is expected that after May 1, the transition to a competitive market will proceed for several weeks as distributors progress through their billing cycles. 7 tabs., 2 figs

  8. Essays on the integration of renewables in electricity markets

    International Nuclear Information System (INIS)

    Knaut, Andreas

    2017-01-01

    The thesis sheds light onto the integration of renewable energy generation into electricity markets based on five articles. The first article is concerned with the optimal strategies of renewable producers selling electricity in sequential markets. A model is developed in which renewable generators trade their production in two sequential markets, which can be regarded as the day-ahead and intraday markets. Trading in the first market takes place under uncertainty about the final production level of renewable generation. The results show that it might be optimal for renewable producers to sell less than the expected quantity in the day-ahead market. The second article focuses on the high variability in production from renewable electricity and its effect on prices. A model for the allocation of hourly and quarter-hourly electricity generation is developed, assuming that the participation in the market for quarter-hourly products is restricted. Restricted participation in the market for quarter-hourly products may have caused welfare losses of about EUR 96 million in 2015. In the third article, the hourly price elasticity of demand for electricity in the German day-ahead market is empirically estimated. The results indicate a high level of variation of price elasticity of demand throughout the day ranging from -0.02 to -0.13 depending on the time of the day in the German day-ahead market in 2015. The fourth article is concerned with the tariff design in retail markets for electricity. It focuses on the inefficiency from time-invariant pricing in combination with an increasing share of renewable energies. The last article finally takes a closer look at the balancing power market and the impact of different market designs on efficiency and competition. Based on a developed model, it shows that shorter tender frequencies could lower the costs of balancing power procurement by up to 15 %. While market concentration decreases in many markets with shorter provision

  9. Essays on the integration of renewables in electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Knaut, Andreas

    2017-07-06

    The thesis sheds light onto the integration of renewable energy generation into electricity markets based on five articles. The first article is concerned with the optimal strategies of renewable producers selling electricity in sequential markets. A model is developed in which renewable generators trade their production in two sequential markets, which can be regarded as the day-ahead and intraday markets. Trading in the first market takes place under uncertainty about the final production level of renewable generation. The results show that it might be optimal for renewable producers to sell less than the expected quantity in the day-ahead market. The second article focuses on the high variability in production from renewable electricity and its effect on prices. A model for the allocation of hourly and quarter-hourly electricity generation is developed, assuming that the participation in the market for quarter-hourly products is restricted. Restricted participation in the market for quarter-hourly products may have caused welfare losses of about EUR 96 million in 2015. In the third article, the hourly price elasticity of demand for electricity in the German day-ahead market is empirically estimated. The results indicate a high level of variation of price elasticity of demand throughout the day ranging from -0.02 to -0.13 depending on the time of the day in the German day-ahead market in 2015. The fourth article is concerned with the tariff design in retail markets for electricity. It focuses on the inefficiency from time-invariant pricing in combination with an increasing share of renewable energies. The last article finally takes a closer look at the balancing power market and the impact of different market designs on efficiency and competition. Based on a developed model, it shows that shorter tender frequencies could lower the costs of balancing power procurement by up to 15 %. While market concentration decreases in many markets with shorter provision

  10. Electricity and emission allowance markets from Finnish viewpoint. Study

    International Nuclear Information System (INIS)

    Kara, M.

    2006-05-01

    During 1995.2005 the Nordic energy system has experienced two major changes, the opening of the electricity market for competition and emissions trading within the EU. The European Union's emissions trading scheme (EU ETS) that began operating at the beginning of 2005 has weakened the competitiveness of Finnish electricity production and raised electricity prices. Most electricity producers have accumulated large profits thanks to higher prices. The payers have been nearly all electricity users. This report studies the effects of emissions trading on the electricity market and the functionality of the power market. Very little investment has been made in power production capacity in the Nordic countries over the past ten years. Considerable increases have mainly been made in Danish wind power capacity. Simultaneously, the total consumption of electricity and maximum system load have increased more than installed capacity has grown. In the next few years the power and energy balances may be threatened. In previous years, Finland has often been separated as its own market price area on the Nordic power exchange. The formation of price areas has been affected by the limited capacity in transmission interconnectors, network reparation work and the operating method of the Swedish national system operator, Svenska Kraftnaet (transferring domestic bottlenecks to the borders). This study reviews the scale of price differences and the effect on market activities. On the common Nordic electricity market, Finnish coal and peat condensing power capacity is mainly used during poor precipitation years. These plants were once built for base load production. Carbon dioxide emissions trading has further weakened the competitiveness of these plants. The biggest problem for the Nordic power exchange, Nord Pool, is regarded to be that market concentration in electricity production is high. Market concentration decreases the investment willingness of existing players as new power

  11. 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

  12. Electricity trade under financial market supervision; Der Stromhandel unter Finanzmarktaufsicht

    Energy Technology Data Exchange (ETDEWEB)

    Hagena, Martin

    2011-07-01

    With the competitive opening of the electricity market at European and national level, the goods electricity became a freely traded commodity. The author of the contribution under consideration describes the legal consequences related to financial market for trading electricity in the context of the current Directive 2004/39/EC now under consideration of the commodity futures trading in its representational scope. The statements clearly indicate that the power market is a goods market with its own laws and not a classical financial market. It considers what characteristics exist in electricity trading and whether and how they are considered for regulatory purposes.

  13. PV Solar Electricity: From a Niche Market to One of the Most Important Mainstream Markets for Electricity

    Science.gov (United States)

    Hoffmann, W.; Waldmann, L.

    PV solar electricity is seen as one of the few booming markets, today and in the coming decades. This market has grown globally at a rate of about 40% per year over the past 10 years. Related industries have realized a two-digit, billion-dollar (U.S.) turnover worldwide. PV solar electricity is a high-tech industry with high performance potential in the coming decades, leaving even the electronics industries behind and approaching the automotive industry.

  14. Marketing wholesale electricity in British Columbia

    Energy Technology Data Exchange (ETDEWEB)

    Moghadam, B. [Powerex, Vancouver, BC (Canada)

    2002-03-14

    An open access wholesale transmission tariff (WTS) has been in place in British Columbia since 1997, and wholesale electricity can be sold to wholesale purchasers by independent producers located within the province. Customers range from municipalities to British Columbia Hydro (BC Hydro), to Powerex, to UtiliCorp Networks Corporation (UNC). Provided that the necessary approvals and transmission services have been acquired, the energy may be transmitted anywhere in Canada or the United States. The generation and sale of electricity within British Columbia and the United States is subject to government and regulatory approvals. Several buyers and sellers that come together to trade a product are part of a hub. The largest such hub in the Pacific Northwest is called the Mid-Columbia (Mid-C) hub in Washington. The commodity is traded in 25 MW standard blocks. The credit requirements of the purchaser must be satisfied by the generating party. BC Hydro wholesale transmission service can be purchased by any wholesale power marketer or generator to transmit the power to market. It is imperative that scheduling personnel be available at all times. The Western System Coordinating Council (WSCC) insists that an operating reserve of 5 per cent hydro generation and 7 per cent thermal generation to support the electrical system in the face of an emergency be available for the electricity marketed through the hub. Powerex has been successful since 1988 in the marketing of electricity throughout the WSCC. An example was provided to help make the rules a bit easier to comprehend. refs.

  15. Marketing wholesale electricity in British Columbia

    International Nuclear Information System (INIS)

    Moghadam, B.

    2002-01-01

    An open access wholesale transmission tariff (WTS) has been in place in British Columbia since 1997, and wholesale electricity can be sold to wholesale purchasers by independent producers located within the province. Customers range from municipalities to British Columbia Hydro (BC Hydro), to Powerex, to UtiliCorp Networks Corporation (UNC). Provided that the necessary approvals and transmission services have been acquired, the energy may be transmitted anywhere in Canada or the United States. The generation and sale of electricity within British Columbia and the United States is subject to government and regulatory approvals. Several buyers and sellers that come together to trade a product are part of a hub. The largest such hub in the Pacific Northwest is called the Mid-Columbia (Mid-C) hub in Washington. The commodity is traded in 25 MW standard blocks. The credit requirements of the purchaser must be satisfied by the generating party. BC Hydro wholesale transmission service can be purchased by any wholesale power marketer or generator to transmit the power to market. It is imperative that scheduling personnel be available at all times. The Western System Coordinating Council (WSCC) insists that an operating reserve of 5 per cent hydro generation and 7 per cent thermal generation to support the electrical system in the face of an emergency be available for the electricity marketed through the hub. Powerex has been successful since 1988 in the marketing of electricity throughout the WSCC. An example was provided to help make the rules a bit easier to comprehend. refs

  16. 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)

  17. How to benefit from a common European electricity market design

    International Nuclear Information System (INIS)

    Ringler, Philipp; Keles, Dogan; Fichtner, Wolf

    2017-01-01

    The realization of an Internal Electricity Market in Europe is currently, on the one hand, progressing, in particular thanks to the wide-spread implementation of market coupling solutions for cross-border congestion management. On the other hand, diverging national market designs pose a threat to the continuation of this process. Given the challenges to electricity market design in a multi-regional context, we analyze how different design aspects, namely cross-border congestion management and capacity mechanisms, affect welfare and generation adequacy in Europe. In doing so, we rely on an agent-based simulation model for electricity wholesale markets which we apply within several numerical, computational case studies for the region of Central Western Europe (2012–2030). Our results confirm the benefits of market coupling in terms of welfare as well as generation adequacy. Furthermore, we find indications that coordinating market designs across regions supports these targets. Therefore, we recommend that European energy policy forms a stable, transparent regulatory framework with cross-border market coupling as an integral component. In this context, energy policy targets should be clearly defined and operationalized, which also needs to consider potential conflicts between them. Finally, electricity market designs need to be coordinated among states to benefit most from a common European market. - Highlights: • European electricity markets at crossroads given diverging market designs • Simulation of CWE Market Coupling using an agent-based model. • Welfare and adequacy gains from European market coupling and new interconnections. • Conflicts between energy policy targets to be considered in market design. • Coordination key to further strengthen integration of electricity markets in Europe.

  18. Lithuanian way of reforms to electricity market

    International Nuclear Information System (INIS)

    Bacauskas, A.

    2002-01-01

    Lithuania has inherited a structure of the energy industry, which originally has been developed not for the country, as an independent state, but according to the provisions of the former USSR energy policy, covering energy demand of whole region, including the Baltic countries, Belarus and the Kaliningrad region of Russia. The Lithuanian power system is interconnected by high voltage power lines and operates in parallel with Latvian, Estonian, Russian and Belarus power systems. During twelve years of independence the power sector passed significant changes from a vertically integrated monopoly to some separate power companies and meets EU requirements to an internal electricity market. The main issues of reforms: transparency of costs, commercial relations in power sector, fulfilment of the Electricity Directive 96/92/EU. The Lithuanian electricity market is small and inefficient. Current reforms of a power sector are directed to create the common Baltic electricity market. (author)

  19. Canadian electricity trends and issues : an energy market assessment

    International Nuclear Information System (INIS)

    2001-05-01

    This report examines the supply and demand of electricity in Canada and provides a province by province analysis of trade, regulatory developments and electricity prices. The Canadian electricity market is regionally diverse, as evidenced by the variety of fuels used for power generation and the differences in market structure, regulation and pricing. Hydro accounts for 61 per cent of Canadian electricity generation. Other sources include coal (18 per cent), nuclear (13 per cent), natural gas (4 per cent) and oil and renewables (4 per cent). Most new power generation projects in Canada are expected to be gas-fired leading to a convergence between natural gas and electricity markets. Most provincial electricity markets are being adequately supplied, even with rising power demands. Alberta restructured its electricity market over a five year period culminating in full retail access on 1 January 2001. While power supply has been relatively tight in Alberta, new generation capacity is expected to become available over the next few years. Ontario plans to implement full retail access in May 2002. Most other provinces are implementing wholesale access. Canadian residential electricity prices are among the lowest of the industrialized countries, and tend to be lowest in hydro-rich provinces. Most hydro-rich provinces have surplus energy available for domestic and international trade. Some provinces are undergoing basic changes with respect to the restructuring of their markets through the unbundling of power generation, transmission and distribution services. 53 figs

  20. Information Uncertainty in Electricity Markets: Introducing Probabilistic Offers

    DEFF Research Database (Denmark)

    Papakonstantinou, Athanasios; Pinson, Pierre

    2016-01-01

    We propose a shift from the current paradigm of electricity markets treating stochastic producers similarly to conventional ones in terms of their offers. We argue that the producers’ offers should be probabilistic to reflect the limited predictability of renewable energy generation, while we...... should design market mechanisms to accommodate such offers. We argue that the transition from deterministic offers is a natural next step in electricity markets, by analytically proving our proposal’s equivalence with a two-price conventional market....

  1. Price volatility in wind dominant electricity markets

    DEFF Research Database (Denmark)

    Farashbashi-Astaneh, Seyed-Mostafa; Chen, Zhe

    2013-01-01

    High penetration of intermittent renewable energy sources causes price volatility in future electricity markets. This is specially the case in European countries that plan high penetration levels. This highlights the necessity for revising market regulations and mechanisms in accordance...... to generation combination portfolio. Proposed solutions should be able to tackle with emerging challenges which are mainly due to high variability and unpredictability of intermittent renewable resources. In this paper high price volatility will be introduced as an emerging challenge in wind dominant...... electricity markets. High price volatility is unappreciated because it imposes high financial risk levels to both electricity consumers and producers. Additionally high price variations impede tracking price signals by consumers in future smart grid and jeopardize implementation of demand response concepts...

  2. Analysis of the green certificate market; Ein analyse av den groene sertifikatmarknaden

    Energy Technology Data Exchange (ETDEWEB)

    Storeboe, Inger Oeydis

    2001-04-01

    This report studies the advantages and disadvantages of a separate financial market for the environmental advantages in the production of electricity from renewable energy sources. This market solution is evaluated against other financial systems used to promote the production of green electricity. By starting from a general equilibrium model for the green certificate market, the report discusses how the adaptation in the certificate market is influenced by changes in the market conditions. The certificate market is combined with a quota market for carbon dioxide, with and without international trade with electricity and certificate and market power in the production of electricity from renewable energy sources.

  3. Design of reactive power procurement in deregulated electricity market

    African Journals Online (AJOL)

    Reactive power management is different in the deregulated electricity market of various countries. In this paper, a novel reactive power procurement model is proposed, which ensure secure and reliable operation of deregulated electricity market. Various issues of reactive power management in the deregulated electricity ...

  4. Reforming European electricity industries: to each, his own ''single market''

    International Nuclear Information System (INIS)

    Glachant, J.M.

    2000-01-01

    National transpositions of the European directive on domestic electricity markets have maintained a degree of diversity; and this also characterizes the other conditions for accessing national electricity markets (physical, commercial, industrial and capital access). As a look at the prices of electricity shows, these national markets do not operate in a single way Europe-wide. Furthermore, electricity companies - key actors in this competition - differ widely from each other in size, electrical potential, investment portfolios and strategies for growth. (authors)

  5. Transmission-constrained oligopoly in the Japanese electricity market

    International Nuclear Information System (INIS)

    Tanaka, Makoto

    2009-01-01

    We simulate the Japanese wholesale electricity market as a transmission-constrained Cournot market using a linear complementarity approach. First, we investigate the effects of upgrading the bottleneck transmission line between the eastern and western regions, focusing on the mitigation of transmission congestion. Although increasing the bottleneck capacity would lead to welfare gains, they might not be substantial particularly when transmission capacity costs are taken into account. Second, we examine the effects of splitting the largest electric power company, which is located in the eastern region, focusing on the mitigation of market power. Splitting the largest company into two companies would lead to a 25% reduction in the eastern price, and a 50% reduction in deadweight loss. The divestiture of the largest company would have a significant effect of mitigating market power in the Japanese electricity market. (author)

  6. Stratum Electricity Markets: Toward Multi-temporal Distributed Risk Management for Sustainable Electricity Provision

    Science.gov (United States)

    Wu, Zhiyong (Richard)

    Motivated by the overall challenge of ensuring long-term sustainable electricity service, we view this challenge as a long-term decision making problem under uncertainties. We start by recognizing that, independent of the industry organization, the uncertainties are enormous and often exogenous to the energy service providers. They are multi-dimensional and are result of fundamental drivers, ranging from the supply side, through the demand side, to the regulatory and policy sides. The basic contribution of this thesis comes from the recognition that long-term investments for ensuring reliable and stable electricity service critically depend on how these uncertainties are perceived, valued and managed by the different stakeholders within the complex industry organization such as the electric power industry. We explain several reasons why price signals obtained from current short-term electricity markets alone are not sufficient enough for long-term sustainable provision. Some enhancements are presented in the thesis to improve the short-term electricity market price signals to reflect the true cost of operation. New market mechanisms and instruments are needed to facilitate the stakeholders to better deal with long-term risks. The problems of ensuring long-term stable reliable service in the sense of the traditional resource adequacy requirements are revisited in both the restructuring industry and regulated industry. We introduce a so-called Stratum Electricity Market (SEM) design as the basic market mechanism for solving the problem of long-term reliable electricity service through a series of interactive multi-lateral market exchange platforms for risks communication, management and evaluations over various time horizons and by the different groups of stakeholders. In other words, our proposed SEM is a basic IT-enabled framework for the decision making processes by various parties over different time. Because of the uniqueness of electricity as a commodity, the

  7. Support Vector Machines for decision support in electricity markets׳ strategic bidding

    DEFF Research Database (Denmark)

    Pinto, Tiago; Sousa, Tiago M.; Praça, Isabel

    2015-01-01

    . The ALBidS system allows MASCEM market negotiating players to take the best possible advantages from the market context. This paper presents the application of a Support Vector Machines (SVM) based approach to provide decision support to electricity market players. This strategy is tested and validated...... by being included in ALBidS and then compared with the application of an Artificial Neural Network (ANN), originating promising results: an effective electricity market price forecast in a fast execution time. The proposed approach is tested and validated using real electricity markets data from MIBEL......׳ research group has developed a multi-agent system: Multi-Agent System for Competitive Electricity Markets (MASCEM), which simulates the electricity markets environment. MASCEM is integrated with Adaptive Learning Strategic Bidding System (ALBidS) that works as a decision support system for market players...

  8. Ordered phase and non-equilibrium fluctuation in stock market

    Science.gov (United States)

    Maskawa, Jun-ichi

    2002-08-01

    We analyze the statistics of daily price change of stock market in the framework of a statistical physics model for the collective fluctuation of stock portfolio. In this model the time series of price changes are coded into the sequences of up and down spins, and the Hamiltonian of the system is expressed by spin-spin interactions as in spin glass models of disordered magnetic systems. Through the analysis of Dow-Jones industrial portfolio consisting of 30 stock issues by this model, we find a non-equilibrium fluctuation mode on the point slightly below the boundary between ordered and disordered phases. The remaining 29 modes are still in disordered phase and well described by Gibbs distribution. The variance of the fluctuation is outlined by the theoretical curve and peculiarly large in the non-equilibrium mode compared with those in the other modes remaining in ordinary phase.

  9. Essays on liberalized energy markets

    Energy Technology Data Exchange (ETDEWEB)

    Nese, Gjermund

    2003-07-01

    This thesis consists of four essays that aim at contributing to the understanding of some of the new challenges associated by the liberalized energy markets. More specifically the essays consider investments in energy generation projects; international trade of Green Certificates, market power in a Green Certificate system, and finally the behaviour of public firms in liberalized markets. Essay 1 considers energy investment, when a choice has to be made between fossil fuel and biomass fired production technologies. A dynamic model is presented to illustrate the effect of the different degrees of input price uncertainty on the choice of technology and the timing of the investment. It is shown that when the choice of technology is irreversible, it may be optimal to postpone the investment even if it would otherwise be optimal to invest in one or both of the plant types. We provide a numerical example based on cost estimates of two different power plant types. Essay 2 presents an analytical equilibrium model for simultaneously functioning international markets for electricity and Green Certificates is formulated. The percentage requirement is perceived as the policy instrument affecting the level of green electricity in end-use consumption. In none of the cases considered does an increase in the country's percentage requirement necessarily result in an increase in the generation of green electricity in that country, but it may have a positive effect on the trading partner's generation of green electricity. Further, under quite realistic assumptions, a country maximizes its generation of green electricity by setting the percentage requirement to zero. In essay 3 an analytic equilibrium model for a simultaneously functioning electricity market and a market for Green Certificates is formulated. The major focus of the paper is the effect of market power in a Green Certificate system. One of the main results is that the certificate system faced with market power

  10. Essays on liberalized energy markets

    International Nuclear Information System (INIS)

    Nese, Gjermund

    2003-01-01

    This thesis consists of four essays that aim at contributing to the understanding of some of the new challenges associated by the liberalized energy markets. More specifically the essays consider investments in energy generation projects; international trade of Green Certificates, market power in a Green Certificate system, and finally the behaviour of public firms in liberalized markets. Essay 1 considers energy investment, when a choice has to be made between fossil fuel and biomass fired production technologies. A dynamic model is presented to illustrate the effect of the different degrees of input price uncertainty on the choice of technology and the timing of the investment. It is shown that when the choice of technology is irreversible, it may be optimal to postpone the investment even if it would otherwise be optimal to invest in one or both of the plant types. We provide a numerical example based on cost estimates of two different power plant types. Essay 2 presents an analytical equilibrium model for simultaneously functioning international markets for electricity and Green Certificates is formulated. The percentage requirement is perceived as the policy instrument affecting the level of green electricity in end-use consumption. In none of the cases considered does an increase in the country's percentage requirement necessarily result in an increase in the generation of green electricity in that country, but it may have a positive effect on the trading partner's generation of green electricity. Further, under quite realistic assumptions, a country maximizes its generation of green electricity by setting the percentage requirement to zero. In essay 3 an analytic equilibrium model for a simultaneously functioning electricity market and a market for Green Certificates is formulated. The major focus of the paper is the effect of market power in a Green Certificate system. One of the main results is that the certificate system faced with market power may

  11. Market integration among electricity markets and their major fuel source markets

    International Nuclear Information System (INIS)

    Mjelde, James W.; Bessler, David A.

    2009-01-01

    Dynamic price information flows among U.S. electricity wholesale spot prices and the prices of the major electricity generation fuel sources, natural gas, uranium, coal, and crude oil, are studied. Multivariate time series methods applied to weekly price data show that in contemporaneous time peak electricity prices move natural gas prices, which in turn influence crude oil. In the long run, price is discovered in the fuel sources market (except uranium), as these prices are weakly exogenous in a reduced rank regression representation of these energy prices.

  12. African electricity market liberalization, competition and structuring: Should double bid markets be set up?

    International Nuclear Information System (INIS)

    Founanou, M.

    2011-01-01

    In this paper, we analyse the possibility of using double auction mechanisms in the organization of the electricity markets in African countries. Today's electricity markets around the world are de-regulated and going through a restructuring process. In a context marked by the opening up to competition, a double auction for electricity supply is henceforth used to set prices in wholesale and retail electricity markets. Game theory analysis useful for studying the double auction prices proprieties. The double auction is a non-cooperative game, which is strategically equivalent to the auctions theory. The price formed, depending on the buyers and sellers' strategies, is a competitive price, which tends to the ideal price when competition operates intensely on both sides of market. For Africa, the presence of congestion costs and a chronic lack of capacity require the search for other solutions. We investigate optimal strategic behaviour when buyers and sellers are separated by a possibly constrained transmission line and show that bidders' strategies converge to truth-telling behaviour as the number of market participants increases. In the congestion case, this fails to occur. We also investigate how participants in wholesale electricity markets modify their bidding strategies as a function of the influence and behaviour of a transmission line owner. (author)

  13. Nordic market report 2009 : Development in the Nordic electricity market

    Energy Technology Data Exchange (ETDEWEB)

    2009-07-01

    The Nordic region is characterized by a unique mix of generation sources where the high share of hydropower, representing virtually all of the Norwegian and nearly half of the Swedish generation capacity, has a great influence on the market. The level of precipitation is thus vital when calculating and analysing potential generation levels. In addition, the Nordic region has significantly colder winters than any other European country, influencing the consumption as many households are electrically heated. In 2008 the overall electricity consumption in the Nordic region was slightly higher - 1.6 per cent - than in 2007. During periods of peak consumption the Nordic power system proved sufficient to ensure security of supply without restrictions on consumption. The Nordic region operates almost entirely as one synchronous power system through transmission grid. The continuous reinforcement of the Nordic transmission grid has enabled an increased security of supply as well as a more efficient use of the generation capacity. Increasing cross border power flows strain the transmission lines and increases the demand for transmission capacity. Possible congestions occurring between the Nord Pool bidding areas are handled through market splitting, while internal congestions in general are handled through counter trade or by reducing interconnector capacity at the bidding area borders. The Nordic wholesale power market is a well functioning electricity market. Trade at Nord Pool has increased steadily since it was established in 1993. Although trading at Nord Pool Spot is voluntary, significantly more physical power is now traded on the power exchange than bilaterally - from 42 per cent of total Nordic consumption in 2004 to 76 per cent in 2008. During 2008 average spot prices at Nord Pool were considerably higher (approximately 60 per cent) than prices in 2007. The Nordic retail markets are essentially four separate markets, influenced by national differences, but work on

  14. Nordic market report 2009. Development in the Nordic electricity market

    Energy Technology Data Exchange (ETDEWEB)

    2009-07-15

    The Nordic region is characterized by a unique mix of generation sources where the high share of hydropower, representing virtually all of the Norwegian and nearly half of the Swedish generation capacity, has a great influence on the market. The level of precipitation is thus vital when calculating and analysing potential generation levels. In addition, the Nordic region has significantly colder winters than any other European country, influencing the consumption as many households are electrically heated. In 2008 the overall electricity consumption in the Nordic region was slightly higher - 1.6 per cent - than in 2007. During periods of peak consumption the Nordic power system proved sufficient to ensure security of supply without restrictions on consumption. The Nordic region operates almost entirely as one synchronous power system through transmission grid. The continuous reinforcement of the Nordic transmission grid has enabled an increased security of supply as well as a more efficient use of the generation capacity. Increasing cross border power flows strain the transmission lines and increases the demand for transmission capacity. Possible congestions occurring between the Nord Pool bidding areas are handled through market splitting, while internal congestions in general are handled through counter trade or by reducing interconnector capacity at the bidding area borders. The Nordic wholesale power market is a well functioning electricity market. Trade at Nord Pool has increased steadily since it was established in 1993. Although trading at Nord Pool Spot is voluntary, significantly more physical power is now traded on the power exchange than bilaterally - from 42 per cent of total Nordic consumption in 2004 to 76 per cent in 2008. During 2008 average spot prices at Nord Pool were considerably higher (approximately 60 per cent) than prices in 2007. The Nordic retail markets are essentially four separate markets, influenced by national differences, but work on

  15. On the correlation of electricity spot market prices and photovoltaic electricity generation

    International Nuclear Information System (INIS)

    Meyer, Tim; Luther, Joachim

    2004-01-01

    Discussions about market introduction of grid connected photovoltaics (PV) and its costs usually concentrate only on the gross energy produced without taking the time dependency of electricity prices and, thus, the time dependency of the value of PV electricity into account. To make a first approximation of what the effect of the time variance of electricity cost on the value of PV electricity is, the correlation with spot market prices is analysed in this paper. PV is not dispatchable by nature, but is relatively well predictable in the range of one day, if the average of spatially dispersed systems is considered. Thus, this correlation gives a good indication for the additional value of PV electricity

  16. On the correlation of electricity spot market prices and photovoltaic electricity generation

    International Nuclear Information System (INIS)

    Meyer, T.; Luther, J.

    2004-01-01

    Discussions about market introduction of grid connected photovoltaics (PV) and its costs usually concentrate only on the gross energy produced without taking the time dependency of electricity prices and, thus, the time dependency of the value of PV electricity into account. To make a first approximation of what the effect of the time variance of electricity cost on the value of PV electricity is, the correlation with spot market prices is analysed in this paper. PV is not dispatchable by nature, but is relatively well predictable in the range of one day, if the average of spatially dispersed systems is considered. Thus, this correlation gives a good indication for the additional value of PV electricity. (Author)

  17. Mid-Term Electricity Market Clearing Price Forecasting with Sparse Data: A Case in Newly-Reformed Yunnan Electricity Market

    Directory of Open Access Journals (Sweden)

    Chuntian Cheng

    2016-10-01

    Full Text Available For the power systems, for which few data are available for mid-term electricity market clearing price (MCP forecasting at the early stage of market reform, a novel grey prediction model (defined as interval GM(0, N model is proposed in this paper. Over the traditional GM(0, N model, three major improvements of the proposed model are: (i the lower and upper bounds are firstly identified to give an interval estimation of the forecasting value; (ii a novel whitenization method is then established to determine the definite forecasting value from the forecasting interval; and (iii the model parameters are identified by an improved particle swarm optimization (PSO instead of the least square method (LSM for the limitation of LSM. Finally, a newly-reformed electricity market in Yunnan province of China is studied, and input variables are contrapuntally selected. The accuracy of the proposed model is validated by observed data. Compared with the multiple linear regression (MLR model, the traditional GM(0, N model and the artificial neural network (ANN model, the proposed model gives a better performance and its superiority is further ensured by the use of the modified Diebold–Mariano (MDM test, suggesting that it is suitable for mid-term electricity MCP forecasting in a data-sparse electricity market.

  18. Prices and tariffs in a liberalized electricity market

    International Nuclear Information System (INIS)

    Rijkers, F.; Wals, A.; Battjes, C.; Scheepers, M.

    2000-01-01

    First, it is described how prices and tariffs were determined before the introduction of the liberalization. Next, a brief overview is given of the transfer to the liberalized market and how the situation is on this market at present. Special attention is paid to the pricing of electricity in a free market, which is determined by competition between electricity producers in the Netherlands and abroad. Finally, a comparison is made between the expected prices and tariffs in a liberalized market and the prices before the liberalization

  19. 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

  20. Differential topology and general equilibrium with complete and incomplete markets

    CERN Document Server

    Villanacci, Antonio; Benevieri, Pierluigi; Battinelli, Andrea

    2002-01-01

    General equilibrium In this book we try to cope with the challenging task of reviewing the so called general equilibrium model and of discussing one specific aspect of the approach underlying it, namely, market completeness. With the denomination "general equilibrium" (from now on in short GE) we shall mainly refer to two different things. On one hand, in particular when using the expression "GE approach", we shall refer to a long established methodolog­ ical tradition in building and developing economic models, which includes, as of today, an enormous amount of contributions, ranging in number by several 1 thousands • On the other hand, in particular when using the expression "stan­ dard differentiable GE model", we refer to a very specific version of economic model of exchange and production, to be presented in Chapters 8 and 9, and to be modified in Chapters 10 to 15. Such a version is certainly formulated within the GE approach, but it is generated by making several quite restrictive 2 assumptions •...

  1. Competition and equilibria in electricity markets based on two-settlement system: A conjectural variation approach

    Science.gov (United States)

    Watts, David

    This dissertation studies electricity markets based on two-settlement systems and applies the concept of conjectural variation (CV) as a tool for representing different levels of competitiveness in the market. Some recent theoretical works are addressed to support the use of CV as a solution concept. A notion of consistency is introduced to make the level of competitiveness of the market endogenous, and allows finding consistent CV equilibria and the corresponding conditions for existence of equilibria. First, a case is studied in which firms hold exogenous levels of forward commitments. Then, backward induction and sub-game perfection are used to solve sequentially for the spot and forward market equilibrium. This allows analyzing how firms take positions in the forward market, based on considering their later impact on the spot market. It is concluded that positions taken in the forward market depend largely on firms expectations about the competitiveness of both the spot and the forward market. Forward markets are welfare enhancing even if they are not as competitive as the associated spot market as long as they are not too oligopolistie. The above formulation is used to model a dynamic scenario to analyze market stability, linking this research to Dr. Alvarado's earlier research on market stability. This brings about interesting trade offs between market power and market stability.

  2. Nuclear Power Plants in a Competitive Electricity Market

    International Nuclear Information System (INIS)

    Jankauskas, V.

    2002-01-01

    Electricity demand is growing in the world by an average rate of 3% and, according to the International Energy Agency, is going to keep this pace of growth for the 1st quarter of the 21st century. At the same time, the role of the nuclear in the world energy mix is diminishing, and in 2020 only 9% of the world electricity will be produced at the nuclear plants versus 17% in 2000. The main reasons for the nuclear power diminishing share in the world market are not environmental or safety problems, as one may assume, but technical and economical. Long construction time, high capital cost, huge liabilities connected with the spent nuclear fuel and radioactive waste treatment, storage and final disposal are the main factors restricting the further growth of the nuclear power. Nevertheless, in the liberalized markets (U.K., Germany, Scandinavian countries) nuclear power plants are operating rather successfully. In a short run nuclear plants may become very competitive as they have very low short-run marginal costs, but in the long run they may become very in competitive. The Ignalina NPP plays the dominant ro]e in the Lithuanian electricity market, producing more than 75% of the total domestic electricity. It produces the cheapest electricity in Lithuania, mostly due to its higher availability, than the thermal power plants. The price of electricity sold by Ignalina is also lower as it does not cover all costs connected with the future decommissioning of the plant, spent fuel storage and final disposal. If at least part of this cost were included into the selling price, Ignalina might become highly competitive in a liberalised electricity market. As the Lithuanian Electricity law requires to deregulate electricity. generation prices, these prices should be set by the market. (author)

  3. Risk management of power supply in open electricity market

    International Nuclear Information System (INIS)

    Rinta-Runsala, E.; Kiviniemi, J.

    1999-12-01

    The open electricity market has increased the need of risk management in electric utilities. In this publication the concepts of risk assessment and measures mostly concentrating on market risks for power supply companies are reported. An essential past of the risk management includes the electricity derivates and trade

  4. 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

  5. The German electricity market. Does the present market design provide security of supply?

    International Nuclear Information System (INIS)

    Janssen, Matthias; Peichert, Patrick; Perner, Jens; Riechmann, Christoph; Niedrig, Thomas

    2014-01-01

    A heated discussion is being waged in Germany and large parts of Europe over the introduction of what are referred to as capacity mechanisms, whose purpose is to provide security of supply in the electricity sector. In this context two consulting firms have undertaken a both qualitative and quantitative study of the fitness of the present market design, which is based on the ''Energy-Only Market'' (EOM), to provide security of supply in the German electricity market. The authors come to the conclusion that, if suitably framed, the EOM can continue to provide a secure electricity supply in accordance with consumer preferences and at the lowest possible cost.

  6. The Future of Centrally-Organized Wholesale Electricity Markets

    Energy Technology Data Exchange (ETDEWEB)

    Glazer, Craig [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Morrison, Jay [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Breakman, Paul [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Clements, Allison [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Schwartz, Lisa [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)

    2017-06-21

    The electricity grid in the United States is organized around a network of large, centralized power plants and high voltage transmission lines that transport electricity, sometimes over large distances, before it is delivered to the customer through a local distribution grid. This network of centralized generation and high voltage transmission lines is called the “bulk power system.” Costs relating to bulk power generation typically account for more than half of a customer’s electric bill.1 For this reason, the structure and functioning of wholesale electricity markets have major impacts on costs and economic value for consumers, as well as energy security and national security. Diverse arrangements for bulk power wholesale markets have evolved over the last several decades. The Southeast and Western United States outside of California have a “bilateral-based” bulk power system where market participants enter into long-term bilateral agreements — using competitive procurements through power marketers, direct arrangements among utilities or with other generation owners, and auctions and exchanges.

  7. Electricity Market Stochastic Dynamic Model and Its Mean Stability Analysis

    Directory of Open Access Journals (Sweden)

    Zhanhui Lu

    2014-01-01

    Full Text Available Based on the deterministic dynamic model of electricity market proposed by Alvarado, a stochastic electricity market model, considering the random nature of demand sides, is presented in this paper on the assumption that generator cost function and consumer utility function are quadratic functions. The stochastic electricity market model is a generalization of the deterministic dynamic model. Using the theory of stochastic differential equations, stochastic process theory, and eigenvalue techniques, the determining conditions of the mean stability for this electricity market model under small Gauss type random excitation are provided and testified theoretically. That is, if the demand elasticity of suppliers is nonnegative and the demand elasticity of consumers is negative, then the stochastic electricity market model is mean stable. It implies that the stability can be judged directly by initial data without any computation. Taking deterministic electricity market data combined with small Gauss type random excitation as numerical samples to interpret random phenomena from a statistical perspective, the results indicate the conclusions above are correct, valid, and practical.

  8. What went wrong in California's electricity market?

    International Nuclear Information System (INIS)

    Chikeung Woo

    2001-01-01

    The California electricity market reform promised to deliver reliable service at low and stable prices. Frequent capacity shortages and the ensuing rolling black-outs, price spikes, and large price volatility since Summer 2000 raise a simple but substantive question: what went wrong? The answer to this question will help countries contemplating electricity market reform not to commit similar mistakes. We find the answer by identifying the major factors that have turned the California dream into a nightmare. Such factors include poor market design, market power, sustained demand growth not matched by new capacity, rising marginal cost, and financial insolvency. Proposed remedies include an alternative market settlement process, long-term contract, fast licensing and siting process for new generation and transmission, conservation and energy-efficiency, distributed resources, rate options, and debt restructuring. The California experience suggests that a reversible regulatory reform is a safe alternative to an irreversible market reform. (Author)

  9. The reform of the Swedish electricity market

    International Nuclear Information System (INIS)

    Petsala, B.

    1995-01-01

    The objective of the ongoing reform of deregulation of the electricity market in Sweden is to create and improve the prerequisites for more efficient use of the generation and distribution, thus bringing about a more efficient price building. Similar reforms take place in the other Nordic countries. As a result of these changes the possibilities for international trade in electricity increases considerably. Tendencies towards concentration of production and distribution as well as increased vertical integration make it important for the State to monitor the development and if necessary suggest measures to counteract possible undesired effects. The national character of the former electricity market does no longer constitute a restriction to trade and the power companies already operate in each other's market. (author). 2 figs., 4 tabs., 6 refs

  10. Determining energy and climate market policy using multiobjective programs with equilibrium constraints

    International Nuclear Information System (INIS)

    Siddiqui, Sauleh; Christensen, Adam

    2016-01-01

    Energy and climate market policy is inherently multiobjective and multilevel, in that desired choices often conflict and are made at a higher level than influenced actors. Analyzing tradeoff between reducing emissions and keeping fuel prices low, while seeking compromise among producers, traders, and consumers is the crux of the policy problem. This paper aims to address this issue by combining multiobjective optimization problems, which allow the study of tradeoff between choices, with equilibrium problems that model the networks and players over which these policies are chosen, to produce a formulation called a Multiobjective Program with Equilibrium Constraints. We apply this formulation to the United States renewable fuel market to help understand why it has been so difficult in releasing the 2014 mandate for the RFS (Renewable Fuel Standard). The RFS ensures that a minimum volume of renewable fuel is included in transportation fuel sold in the United States. Determining the RFS volume requirements involves anticipating market reaction as well as balancing policy objectives. We provide policy alternatives to aid in setting these volume obligations that are applicable to a wide variety of climate and energy market settings and explain why the RFS is not an optimal policy for reducing emissions. - Highlights: • First time a MOPEC has been used to model energy markets and climate policy. • Method to endogenously determine energy policy along with associated tradeoff. • Computationally efficient algorithm for MOPECs and compare to methods. • Explain why the RFS is not an optimal policy for emission reduction.

  11. Electricity market liberalisation - the German model

    International Nuclear Information System (INIS)

    Mueller, W.

    2002-01-01

    This article discusses the experience gained as a result of the opening of the German electricity market - not only from the national but also from European and international points of view. The history of electricity market liberalisation in Germany is described and the market's structure is compared with that of Switzerland. Both the advantages and disadvantages that have been brought about by liberalisation are discussed as well as the role of state regulation. Certain problem areas still to be tackled are discussed, such those in the areas of cartels, possibilities of supplier-change and tariffs. Also, liberalisation in the context of the European Union's efforts in this area are discussed, especially with respect to the consideration of differing structures in the various member countries of the Union

  12. How Engineers Make Markets Organizing Electricity System Decarbonization

    DEFF Research Database (Denmark)

    Jenle, Rasmus Ploug; Pallesen, Trine

    2017-01-01

    construction process undertaken by scientists at the Technical University of Denmark, this article shows how engineers have approached the task by designing markets as technical control systems. It is demonstrated that EcoGrid has been designed by modeling a retail electricity market on three different...... conceptions of control systems as found in the discipline of control systems engineering. By tracing the origins of EcoGrid, this article documents the governing of electricity consumers through what we here call a synthetic market, i.e. a market artifact devised to attain goals. These findings about...

  13. Novel non-equilibrium modelling of a DC electric arc in argon

    Science.gov (United States)

    Baeva, M.; Benilov, M. S.; Almeida, N. A.; Uhrlandt, D.

    2016-06-01

    A novel non-equilibrium model has been developed to describe the interplay of heat and mass transfer and electric and magnetic fields in a DC electric arc. A complete diffusion treatment of particle fluxes, a generalized form of Ohm’s law, and numerical matching of the arc plasma with the space-charge sheaths adjacent to the electrodes are applied to analyze in detail the plasma parameters and the phenomena occurring in the plasma column and the near-electrode regions of a DC arc generated in atmospheric pressure argon for current levels from 20 A up to 200 A. Results comprising electric field and potential, current density, heating of the electrodes, and effects of thermal and chemical non-equilibrium are presented and discussed. The current-voltage characteristic obtained is in fair agreement with known experimental data. It indicates a minimum for arc current of about 80 A. For all current levels, a field reversal in front of the anode accompanied by a voltage drop of (0.7-2.6) V is observed. Another field reversal is observed near the cathode for arc currents below 80 A.

  14. Novel non-equilibrium modelling of a DC electric arc in argon

    International Nuclear Information System (INIS)

    Baeva, M; Uhrlandt, D; Benilov, M S; Almeida, N A

    2016-01-01

    A novel non-equilibrium model has been developed to describe the interplay of heat and mass transfer and electric and magnetic fields in a DC electric arc. A complete diffusion treatment of particle fluxes, a generalized form of Ohm’s law, and numerical matching of the arc plasma with the space-charge sheaths adjacent to the electrodes are applied to analyze in detail the plasma parameters and the phenomena occurring in the plasma column and the near-electrode regions of a DC arc generated in atmospheric pressure argon for current levels from 20 A up to 200 A. Results comprising electric field and potential, current density, heating of the electrodes, and effects of thermal and chemical non-equilibrium are presented and discussed. The current–voltage characteristic obtained is in fair agreement with known experimental data. It indicates a minimum for arc current of about 80 A. For all current levels, a field reversal in front of the anode accompanied by a voltage drop of (0.7–2.6) V is observed. Another field reversal is observed near the cathode for arc currents below 80 A. (paper)

  15. Importance of Electricity Transport Pricing in Liberalised Energy Markets

    International Nuclear Information System (INIS)

    Wohlgemuth, N.

    2001-01-01

    Electricity has traditionally been supplied by vertically integrated companies providing generation, transmission and distribution services. Consumers have purchased a bundled commodity - delivered electricity - and there has been no need to price the components individually. This is no longer the case in competitive and unbundled electricity markets. One of the outstanding issues in the restructuring of the electricity markets is the way in which transmission costs are translated into tariffs. The efforts to create a single European electricity market are difficult to reconcile due to different national network pricing approaches. The European Commission's draft regulation on conditions for access to the network for cross-border exchanges of electricity sets general principles for the pricing of international electricity exchanges. Nodal pricing provides incentives for an efficient use of generation and transmission assets. Experience shows that nodal pricing is workable, and its use may be expected to increase progressively. Postage stamp pricing does not generally provide adequate incentives for efficiency. However, inefficiencies may be small under certain conditions, and postage stamp pricing has the advantage of being relatively transparent and easy to implement. This paper presents an overview of objectives related to an effective design of transmission pricing approaches, of transmission pricing models and presents recent developments in Europe in this respect. Due to the great number of institutional designs of electricity market organisations, it will be difficult to design and implement a model of cross-border transmission pricing that results in a high degree of non-discriminatory international competition in electricity markets, a key objective of the Electricity Directive.(author)

  16. A critical survey of agent-based wholesale electricity market models

    International Nuclear Information System (INIS)

    Weidlich, Anke; Veit, Daniel

    2008-01-01

    The complexity of electricity markets calls for rich and flexible modeling techniques that help to understand market dynamics and to derive advice for the design of appropriate regulatory frameworks. Agent-Based Computational Economics (ACE) is a fairly young research paradigm that offers methods for realistic electricity market modeling. A growing number of researchers have developed agent-based models for simulating electricity markets. The diversity of approaches makes it difficult to overview the field of ACE electricity research; this literature survey should guide the way through and describe the state-of-the-art of this research area. In a conclusive summary, shortcomings of existing approaches and open issues that should be addressed by ACE electricity researchers are critically discussed. (author)

  17. An interpretative review of the electricity markets. A proposal

    International Nuclear Information System (INIS)

    Martini, A.; Pellegrini, L.; Gallanti, M.

    2001-01-01

    The electricity reform entails the passing from a monopolistic model based on costs to a competitive one grounded on market prices. The structural choices of the model must comply with technical constraints imposed by the electric system and have to be efficiency-driven. So far, more than a dozen of countries has completed the electricity industry restructuring process, with almost different solutions both in the architectural and the operational characteristics; this variety is even more emphasized whether developing and ready-to-start markets are considered. Starting from these premises and considering the forthcoming choices to be accomplished in order to put in competition in the Italian electric industry, as stated by the Decree n. 79 of March, 16, 1999 in reception of the European Directive n. 92/96, the paper presents a framework of the market architectures, as well as an electric auction-based market taxonomy [it

  18. Optimal DG placement in deregulated electricity market

    International Nuclear Information System (INIS)

    Gautam, Durga; Mithulananthan, Nadarajah

    2007-01-01

    This paper presents two new methodologies for optimal placement of distributed generation (DG) in an optimal power flow (OPF) based wholesale electricity market. DG is assumed to participate in real time wholesale electricity market. The problem of optimal placement, including size, is formulated for two different objectives, namely, social welfare maximization and profit maximization. The candidate locations for DG placement are identified on the basis of locational marginal price (LMP). Obtained as lagrangian multiplier associated with active power flow equation for each node, LMP gives the short run marginal cost (SRMC) of electricity. Consumer payment, evaluated as a product of LMP and load at each load bus, is proposed as another ranking to identify candidate nodes for DG placement. The proposed rankings bridges engineering aspects of system operation and economic aspects of market operation and act as good indicators for the placement of DG, especially in a market environment. In order to provide a scenario of variety of DGs available in the market, several cost characteristics are assumed. For each DG cost characteristic, an optimal placement and size is identified for each of the objectives. The proposed methodology is tested in a modified IEEE 14 bus test system. (author)

  19. Credit risk identification and suggestions of electricity market

    Science.gov (United States)

    He, Chuan; Wang, Haichao; Chen, Zhongyuan; Hao, Yuxing; Jiang, Hailong; Qian, Hanhan; Wang, Meibao

    2018-03-01

    The power industry has a long history of credit problems, and the power industry has credit problems such as power users defaulting on electricity bills before the new electricity reform. With the reform of the power system, the credit problems in the power industry will be more complicated. How to effectively avoid the risk factors existing in the course of market operation and how to safeguard the fairness and standardization of market operation is an urgent problem to be solved. This paper first describes the credit risk in power market, and analyzes the components of credit risk identification in power market, puts forward suggestions on power market risk management.

  20. The Market Surveillance Panel in Ontario's electricity market : monitoring, investigating and reporting : backgrounder

    International Nuclear Information System (INIS)

    2002-04-01

    The Market Surveillance Panel (MSP) is an independent body appointed by and accountable to the Independent Directors of Ontario's Independent Electricity Market Operator (IMO). The MSP is fundamental to the development of competitive electricity markets because it is instrumental in monitoring the activities of the Ontario electricity market open to competition as of May 2002. The role of the MSP is to monitor, investigate and report on the behaviour of markets that are administered by the IMO. It is instrumental in promoting the benefits of competition to Ontario energy users. While the MSP is not a regulator, it is empowered to make recommendations to the IMO, the Ontario Energy Board and the Competition Bureau. The role of the MSP is to identify, understand and explain market outcomes that are anomalous, with particular focus on real-time energy price movements and market outcomes, gaming and the exercise of local market power. The report notes that energy prices are expected to fluctuate more in a competitive market than in a regulated market, and that price movements are actually healthy. However, the role of the MSP is to assess energy prices by asking important questions regarding the signaling role of prices, and to ensure that the changes in prices are not a result of abuse of market power. The MSP will also focus on the impediments to effective competition and on recommending actions to mitigate them. 5 refs

  1. Security-Constrained Resource Planning in Electricity Market

    International Nuclear Information System (INIS)

    Roh, Jae Hyung; Shahidehpour, Mohammad; Yong Fu

    2007-06-01

    We propose a market-based competitive generation resource planning model in electricity markets. The objective of the model is to introduce the impact of transmission security in a multi-GENCO generation resource planning. The proposed approach is based on effective decomposition and coordination strategies. Lagrangian relaxation and Benders decomposition like structure are applied to the model. Locational price signal and capacity signal are defined for the simulation of competition among GENCOs and the coordination of security between GENCOs and the regulatory body (ISO). The numerical examples exhibit the effectiveness of the proposed generation planning model in electricity markets.

  2. 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

  3. Electricity and gas market observatory. 3. quarter 2006

    International Nuclear Information System (INIS)

    2006-01-01

    Since July 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). It completes the information already published by CRE: practical information for eligible customers: consumer guide, list of suppliers, communications regarding markets running, CRE annual activity report. (author)

  4. The Interval Stability of an Electricity Market Model

    Directory of Open Access Journals (Sweden)

    Weijuan Wang

    2014-01-01

    Full Text Available Combined with the electric power market dynamic model put forward by Alvarado, an interval model of electricity markets is established and investigated in this paper pertaining to the range of demand elasticity with suppliers and consumers. The stability of an electricity market framework with demand elasticity interval is analyzed. The conclusions characterizing the interval model provided are derived by constructing a suitable Lyapunov function and using the theory of interval dynamical system in differential equations and matrix inequality theory and so forth. Applying the corollary obtained can judge the system stability by available data about demand elasticity. The obtained results are validated and illustrated by a case example.

  5. Electricity and gas market observatory. 1. quarter 2006

    International Nuclear Information System (INIS)

    2006-01-01

    Since July 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). It completes the information already published by CRE: practical information for eligible customers: consumer guide, list of suppliers, communications regarding markets running, CRE annual activity report. (author)

  6. Electricity and gas market observatory. 1. 2005 quarter

    International Nuclear Information System (INIS)

    2005-01-01

    Since July 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). It completes the information already published by CRE: practical information for eligible customers: consumer guide, list of suppliers, communications regarding markets running, CRE annual activity report. (author)

  7. Electricity and gas market observatory. 2. quarter 2006

    International Nuclear Information System (INIS)

    2006-01-01

    Since July 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). It completes the information already published by CRE: practical information for eligible customers: consumer guide, list of suppliers, communications regarding markets running, CRE annual activity report. (author)

  8. Electricity and gas market observatory. 4. 2005 quarter

    International Nuclear Information System (INIS)

    2005-01-01

    Since July 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). It completes the information already published by CRE: practical information for eligible customers: consumer guide, list of suppliers, communications regarding markets running, CRE annual activity report. (author)

  9. Electricity and gas market observatory. 2. 2005 quarter

    International Nuclear Information System (INIS)

    2005-01-01

    Since July 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). It completes the information already published by CRE: practical information for eligible customers: consumer guide, list of suppliers, communications regarding markets running, CRE annual activity report. (author)

  10. Electricity and gas market observatory. 3. 2005 quarter

    International Nuclear Information System (INIS)

    2005-01-01

    Since July 2004, all electricity and gas consumers can be eligible according to their consumption site, as long as all or part of the electricity or gas consumed is designed for non-residential use. The purpose of the observatory is to provide the general public with indicators for monitoring market deregulation. It both covers the wholesale and retail electricity and gas markets in Metropolitan France. This observatory is updated every three months and data are available on CRE web site (www.cre.fr). It completes the information already published by CRE: practical information for eligible customers: consumer guide, list of suppliers, communications regarding markets running, CRE annual activity report. (author)

  11. Methods for Estimation of Market Power in Electric Power Industry

    Science.gov (United States)

    Turcik, M.; Oleinikova, I.; Junghans, G.; Kolcun, M.

    2012-01-01

    The article is related to a topical issue of the newly-arisen market power phenomenon in the electric power industry. The authors point out to the importance of effective instruments and methods for credible estimation of the market power on liberalized electricity market as well as the forms and consequences of market power abuse. The fundamental principles and methods of the market power estimation are given along with the most common relevant indicators. Furthermore, in the work a proposal for determination of the relevant market place taking into account the specific features of power system and a theoretical example of estimating the residual supply index (RSI) in the electricity market are given.

  12. The Brazilian electric power market: historic and forecasting

    International Nuclear Information System (INIS)

    Carvalho Afonso, C.A. de; Azevedo, J.B.L. de

    1992-01-01

    A historical analysis of electric power market evolution in Brazil and in their regions during 1950 to 1990, is described, showing the forecasting for the next ten years. Some considerations about population, energy conservation and industrial consumers are also presented, including statistical data of the electrical power market. (C.G.C.)

  13. 2008 Annual Report of SGCC on Electricity Market Transactions

    Institute of Scientific and Technical Information of China (English)

    2009-01-01

    On April 14,2009,the State Grid Corporation of China (SGCC) held the press conference in Beijing on electricity market transactions and then released the "2008 Annual Report of SGCC on Electricity Market Transactions".

  14. Competition in the European electricity markets – outcomes of a Delphi study

    International Nuclear Information System (INIS)

    Makkonen, Mari; Pätäri, Satu; Jantunen, Ari; Viljainen, Satu

    2012-01-01

    Internal European electricity markets are a target set by the European Union (EU) and under development at present. This article presents the findings of a Delphi study focusing on the prospects of European electricity markets. The main aim is to report the obstacles that participants in the survey felt were the most critical ones affecting competition in the European electricity markets of the future. The respondents were European electricity market specialists, and the themes of the survey ranged from transmission networks and electricity trade to demand flexibility. One of the key findings was shared concern over the adequacy of transmission network capacity in Europe. It was considered that technical issues, such as existing transmission network bottlenecks, are most likely to form obstacles to creating common European electricity markets if new capacity is not built quickly enough. It was seen by the panellists that electricity trading arrangements, whilst important, are unlikely to form a barrier to the development of an internal electricity market. It was noted that electricity trading issues have recently been the subject of development work in the EU. - Highlights: ► The internal electricity market is a priority of the European Union. ► The Delphi method was used to study competition in the European electricity markets. ► The congested grid hampers the development of internal electricity markets in Europe. ► The significance of a transmission network will be emphasised in the future. ► Electricity trading arrangements are likely to be solved.

  15. Electricity market reform failures: UK, Norway, Alberta and California

    International Nuclear Information System (INIS)

    Chikeung Woo; Lloyd, Debra; Tishler, Asher

    2003-01-01

    An analysis of electricity market reforms already taken place in the UK, Norway, Alberta (Canada) and California (USA) leads to our overall conclusion that the introduction of a competitive generation market, of itself, has failed to deliver reliable service at low and stable prices. The market reform failures are attributed to market power abuse by few dominant sellers (especially at times of transmission congestion), poor market design that invites strategic bidding by suppliers, the lack of customer response to price spikes, capacity shortage caused by demand growth not matched by new capacity, and thin trading of forward and futures contracts that are critical for price discovery and risk management. The paper then explains why an electricity market reform can easily fail to deliver the promised gains of better service at lower and more stable prices. The policy implication is that an electric market reform can be extremely risky, and may lead to a disastrous outcome. Thus, it is imprudent to implement such a reform in countries with limited sites for new generation and no indigenous fuels (e.g., Israel and Hong Kong). These countries should therefore consider introducing performance-based regulation that can immediately benefit electricity consumers in terms of lower prices, more stable prices, improved reliability, more choices, while encouraging the electric sector to pursue efficient operation and investment. (Author)

  16. Electricity market reform failures: UK, Norway, Alberta and California

    International Nuclear Information System (INIS)

    Woo, C.-K.; Lloyd, Debra; Tishler, Asher

    2003-01-01

    An analysis of electricity market reforms already taken place in the UK, Norway, Alberta (Canada) and California (USA) leads to our overall conclusion that the introduction of a competitive generation market, of itself, has failed to deliver reliable service at low and stable prices. The market reform failures are attributed to market power abuse by few dominant sellers (especially at times of transmission congestion), poor market design that invites strategic bidding by suppliers, the lack of customer response to price spikes, capacity shortage caused by demand growth not matched by new capacity, and thin trading of forward and futures contracts that are critical for price discovery and risk management. The paper then explains why an electricity market reform can easily fail to deliver the promised gains of better service at lower and more stable prices. The policy implication is that an electric market reform can be extremely risky, and may lead to a disastrous outcome. Thus, it is imprudent to implement such a reform in countries with limited sites for new generation and no indigenous fuels (e.g., Israel and Hong Kong). These countries should therefore consider introducing performance-based regulation that can immediately benefit electricity consumers in terms of lower prices, more stable prices, improved reliability, more choices, while encouraging the electric sector to pursue efficient operation and investment

  17. Post-neoliberal electricity market 're-reforms' in Argentina. Diverging from market prescriptions?

    International Nuclear Information System (INIS)

    Haselip, James; Potter, Clive

    2010-01-01

    This paper focuses upon the policy and institutional change that has taken place within the Argentine electricity market since the country's economic and social crisis of 2001/2. As one of the first less developed countries (LDCs) to liberalise and privatise its electricity industry, Argentina has since moved away from the orthodox market model after consumer prices were frozen by the Government in early 2002 when the national currency was devalued by 70%. Although its reforms were widely praised during the 1990s, the electricity market has undergone a number of interventions, ostensibly to keep consumer prices low and to avert the much-discussed energy 'crisis' caused by a dearth of new investment combined with rising demand levels. This paper explores how the economic crisis and its consequences have both enabled and legitimised these policy and institutional amendments, while drawing upon the specifics of the post-neoliberal market 're-reforms' to consider the extent to which the Government appears to be moving away from market-based prescriptions. In addition, this paper contributes to sector-specific understandings of how, despite these changes, neoliberal ideas and assumptions continue to dominate Argentine public policy well beyond the postcrisis era. (author)

  18. The liberalisation of the continental European electricity market : lessons learned

    International Nuclear Information System (INIS)

    Haas, R.; Auer, H.; Keseric, N.; Glachant, J.M.; Perez, Y.

    2006-01-01

    Before 1990, nearly all electricity supply companies in continental Europe (CE) were vertically integrated in a franchise market, either state-owned or under price-regulated mixed private-public ownership. In 1996, the European Commission (EC) issued a directive for a common electricity market, which launched the liberalisation of the electricity market in continental Europe (CE). The ultimate objective was to lower electricity prices throughout Europe by promoting competition in generation and supply through price deregulation and privatization. The intention of the EC was to create one common European electricity market. This paper analyzed the evolution of this market along with conditions needed to enhance competition in the long term. It also presented background information with major data on electricity supply and demand in the CE markets and outlined EC and national governments' market liberalisation initiatives and the major changes that countries have made. Currently, there are at least 7 distinct sub-markets separated by partly insufficient transmission capacity and differences in access conditions to the grid. In 2004, the total demand in the CE area was 2300 TWh. This paper also summarized generation capacity and load in CE; imports and exports between CE countries; past and current transmission issues; political issues for restructuring; providing non-discriminatory access to the market and to the grid; the new institutional and regulatory environment and the promotion of renewables. The performance of the market was also reviewed with particular reference to market access, mergers, acquisitions, market concentration, and the evolution of both wholesale and retail electricity prices. It was concluded that in order to bring about effective competition in the long run, the following conditions would be required: complete ownership separation of the transmission grid from generation and supply in all countries and sub-markets; adequate capacity margin in

  19. The liberalisation of the continental European electricity market : lessons learned

    Energy Technology Data Exchange (ETDEWEB)

    Haas, R.; Auer, H.; Keseric, N. [Vienna Univ. of Technology, Vienna (Austria). Energy Economics Group; Glachant, J.M.; Perez, Y. [Paris-Sud Univ., Paris (France). ADIS-Group Reseaux Jean-Monnet

    2006-10-01

    Before 1990, nearly all electricity supply companies in continental Europe (CE) were vertically integrated in a franchise market, either state-owned or under price-regulated mixed private-public ownership. In 1996, the European Commission (EC) issued a directive for a common electricity market, which launched the liberalisation of the electricity market in continental Europe (CE). The ultimate objective was to lower electricity prices throughout Europe by promoting competition in generation and supply through price deregulation and privatization. The intention of the EC was to create one common European electricity market. This paper analyzed the evolution of this market along with conditions needed to enhance competition in the long term. It also presented background information with major data on electricity supply and demand in the CE markets and outlined EC and national governments' market liberalisation initiatives and the major changes that countries have made. Currently, there are at least 7 distinct sub-markets separated by partly insufficient transmission capacity and differences in access conditions to the grid. In 2004, the total demand in the CE area was 2300 TWh. This paper also summarized generation capacity and load in CE; imports and exports between CE countries; past and current transmission issues; political issues for restructuring; providing non-discriminatory access to the market and to the grid; the new institutional and regulatory environment and the promotion of renewables. The performance of the market was also reviewed with particular reference to market access, mergers, acquisitions, market concentration, and the evolution of both wholesale and retail electricity prices. It was concluded that in order to bring about effective competition in the long run, the following conditions would be required: complete ownership separation of the transmission grid from generation and supply in all countries and sub-markets; adequate capacity

  20. Sustaining China's electricity market development

    International Nuclear Information System (INIS)

    Wu, Yang; Yu, Zichao; Ngan, H.W.; Tan, Zhongfu

    2014-01-01

    China's 12th Five-Year Plan addresses new challenges and sets new goals in the country's power sector. The structure of power generation development is to be optimised to properly balance coal transportation and power transmission. The controversy over the direction of grid transmission and distribution is also to be reconciled. The Plan puts forward specific requirements for energy conservation, developing clean energy, optimising the production of coal-fired electricity, rationalising the allocation of peak power, developing distributed energy and constructing a strong smart grid. It also strongly advocates renewable and other forms of clean energy resources. Considering all the above goals and requirements, it is necessary for China to adjust its blueprint for electricity market development by fine-tuning the original market-oriented reform momentum. This paper aims to design a policy framework for this and discusses how China should develop policies and strategies to meet these requirements and achieve these goals. Examples of compatible international experiences illustrate how China can secure a sustainable energy future. - Highlights: • This paper analyses the electricity market development in China. • Sustainable electricity market development strategies are identified in the paper. • A five-goal policy framework is established for sustaining China's EMD

  1. Electricity market competition and nuclear power

    International Nuclear Information System (INIS)

    Varley, C.; Paffenbarger, J.

    1999-01-01

    Throughout the world, the Organization for Economic Cooperation and Development (OECD) member countries' governments are promoting competitive electricity markets. In particular, there is a move away from administrative price-setting by government institutions to market price-setting through the introduction of competition. Today this is often focused on competition in generation. However, competition among final electricity suppliers and distributors to provide effective consumer choice is a further step that governments are likely to pursue as experience with market reform grows. This competitive environment will undoubtedly impact upon the nuclear generation industry. Competition will provide an opportunity to reinvigorate nuclear power; it will improve the transparency of energy policy-making and the policy framework for nuclear power; it will spur innovation in existing plants and help prospects for new plant build; and provide a strong impetus for cost reduction and innovation. This paper discusses these issues in detail. It looks at the potential benefits and challenges to the nuclear generation industry arising from an increasingly competitive market. (author)

  2. Reassessing the integration of European electricity markets: A fractional cointegration analysis

    International Nuclear Information System (INIS)

    Menezes, Lilian M. de; Houllier, Melanie A.

    2016-01-01

    This study extends existing literature on the assessment of electricity market integration in Europe, by developing and testing hypotheses on the convergence of electricity wholesale prices, and adopting a time-varying fractional cointegration analysis. In addition, the potential impacts of some special events that may affect system capacity (new interconnection, market coupling, increase in share of intermittent generation) on spot and forward markets are considered and evaluated. Daily spot prices from February 2000 to March 2013 of nine European electricity spot markets (APX-UK, APX-NL, Belpex, EPEX-FR, EPEX-DE, IPEX, Nordpool, Omel and OTE) and month-ahead prices in four markets (French, British, German and Dutch) from November 2007 to December 2012 are investigated. Results show that unit root tests, which are generally used in the literature to test market integration, are inadequate for assessing electricity spot market convergence, because spot prices are found to be fractionally integrated and mean-reverting time series. Furthermore, spot price behaviour and their association with different markets change over time, reflecting changes in the EU electrical system. One-month-ahead prices, by contrast, were found to have become more resilient to shocks and to follow more stable trends. - Highlights: • We examine electricity market convergence in the EU. • Common price dynamics are affected by changes in interconnection and capacity. • Forward markets have increased in resilience. • Germany's nuclear plant closures had an adverse effect on most European electricity markets.

  3. The effects of demand uncertainty on strategic gaming in the merit-order electricity pool market

    Science.gov (United States)

    Frem, Bassam

    In a merit-order electricity pool market, generating companies (Gencos) game with their offered incremental cost to meet the electricity demand and earn bigger market shares and higher profits. However when the demand is treated as a random variable instead of as a known constant, these Genco gaming strategies become more complex. After a brief introduction of electricity markets and gaming, the effects of demand uncertainty on strategic gaming are studied in two parts: (1) Demand modelled as a discrete random variable (2) Demand modelled as a continuous random variable. In the first part, we proposed an algorithm, the discrete stochastic strategy (DSS) algorithm that generates a strategic set of offers from the perspective of the Gencos' profits. The DSS offers were tested and compared to the deterministic Nash equilibrium (NE) offers based on the predicted demand. This comparison, based on the expected Genco profits, showed the DSS to be a better strategy in a probabilistic sense than the deterministic NE. In the second part, we presented three gaming strategies: (1) Deterministic NE (2) No-Risk (3) Risk-Taking. The strategies were then tested and their profit performances were compared using two assessment tools: (a) Expected value and standard deviation (b) Inverse cumulative distribution. We concluded that despite yielding higher profit performance under the right conjectures, Risk-Taking strategies are very sensitive to incorrect conjectures on the competitors' gaming decisions. As such, despite its lower profit performance, the No-Risk strategy was deemed preferable.

  4. Competitiveness of nuclear power in Japanese liberalized electricity market

    International Nuclear Information System (INIS)

    Abe, Y.

    2006-01-01

    The liberalization of Japanese electricity market expanded to customers of over 50 kV on April 1, 2005 and more than 60% of the market has been already open. The discussion about the assistance measures of nuclear power generation in Japanese liberalization of electricity market has come to grow warmer gradually. The opinions on the competitiveness of nuclear power are inconsistency among the supporters of nuclear power. Some says that nuclear power is the most competitive, others says nuclear power require some sort of financial or political assistance in the deregulation of electricity market. In this study, based on financial statements of each Japanese electric power company, the constitution of generation cost of nuclear power is illustrated and various financial and economic characteristics, including ''merit of scale'' and the impact of new nuclear power plant construction on the finance of electric power company, are discussed. In addition, the economic features of nuclear power generation are compared with those of thermal power generation through the analysis of financial statements. Finally, support policies for nuclear power required in deregulation of electric utilities are examined in terms of fairness of competition and security of electricity supply

  5. Electricity marketing and retailing

    International Nuclear Information System (INIS)

    Kilby, M.

    2001-01-01

    Canadian Metering Services provides metrology expertise to power producers and has more than 40 years experience in the industry. The company is privately and nationally accredited in Canada and is an expert in data communications. This power point presentation focused on issues regarding prices and price stability. Graphs were included with the presentation which depicted the profiles of winners and losers in electricity marketing and retailing. The presentation also discussed the benefits of a market surveillance panel, AMV, and MDMA and how to go about choosing them. tabs., figs

  6. Electricity marketing and retailing

    Energy Technology Data Exchange (ETDEWEB)

    Kilby, M. [Canadian Meter Services, Toronto ON (Canada)

    2001-07-01

    Canadian Metering Services provides metrology expertise to power producers and has more than 40 years experience in the industry. The company is privately and nationally accredited in Canada and is an expert in data communications. This power point presentation focused on issues regarding prices and price stability. Graphs were included with the presentation which depicted the profiles of winners and losers in electricity marketing and retailing. The presentation also discussed the benefits of a market surveillance panel, AMV, and MDMA and how to go about choosing them. tabs., figs.

  7. Equilibrium and surface stability of liquid dielectric interface in electrical and gravitational fields

    Energy Technology Data Exchange (ETDEWEB)

    Ievlev, I I; Isers, A B

    1976-01-01

    An examination is made of the problem of locating the stable equilibrium surface shape of the interface between two liquid, uniform, isotropic, ideal dielectrics subject to the force of gravity, surface tension, and electrical forces. The conditions for the equilibrium and surface stability of the interface were obtained from the minimum free energy principle. These conditions are used for solving problems on locating the stable equilibrium interface boundary between two dielectrics positioned between infinite charged vertical plates, between infinite vertical coaxial cylinders, between infinite grounded plates and two horizontal charged thin cylinders placed between them. 8 references, 4 figures.

  8. 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

  9. 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....

  10. The electricity prices in the European Union. The role of renewable energies and regulatory electric market reforms

    International Nuclear Information System (INIS)

    Moreno, Blanca; López, Ana J.; García-Álvarez, María Teresa

    2012-01-01

    The European Union electricity market has been gradually liberalized since 1990s. Theoretically, competitive markets should lead to efficiency gains in the economy thus reducing electricity prices. However, there is a controversial debate about the real effects of the electricity liberalization on electricity prices. Moreover, the increased generation of electricity from renewable energies RES-E (Electricity from Renewable Energy Sources) is also integrated in wholesale market reducing wholesale prices, but the final effect over household prices is not clear. In order to contribute to this debate, this paper provides an empirical investigation into the electricity prices determinants. In fact we develop econometric panel models to explore the relationship between the household electricity prices and variables related to the renewable energy sources and the competition in generation electricity market. More specifically we use a panel data set provided by Eurostat and covering 27 European Union countries during the period 1998–2009. Our results suggest that electricity prices increase with the deployment of RES-E and with the expansion of greenhouse gas emissions produced by energy industries- as a European Union CO 2 emission trading scheme exists. Results also reveal that country's characteristics can affect household electricity prices. -- Highlights: ► Electricity liberalized markets should lead to reduce electricity prices. ► The use of renewable energies (RES) reduce wholesale electricity prices. ► However, household electricity prices are increasing in European Union. ► Panel data models are developed to investigate the effect of RES and electricity competition on household electricity prices. ► We find that the deployment of RES increases prices paid by consumers in a liberalized market.

  11. Market power and technological bias in electricity generation markets

    International Nuclear Information System (INIS)

    Twomey, Paul; Neuhoff, Karsten

    2005-01-01

    It is difficult or very costly to avoid all market power in electricity markets. A recurring response is that a limited amount of market power is accepted with the justification that it is necessary to produce revenues to cover some of the fixed costs. It is assumed that all market participants benefit equally from the increased prices. However, this assumption is not satisfied if different production technologies are used. We assess the case of a generation mix of conventional generation and intermittent generation with exogenously varying production levels. If all output is sold in the spot market, then intermittent generation benefits less from market power than conventional generation. If forward contracts or option contracts are signed, then market power might be reduced but the bias against returns to intermittent generators persists. Thus allowing some level of market power as a means of encouraging investment in new generation may result in a bias against intermittent technologies or increase the costs of strategic deployment to achieve renewable quotas. (Author)

  12. Three essays on pricing and risk management in electricity markets

    Science.gov (United States)

    Kotsan, Serhiy

    2005-07-01

    A set of three papers forms this dissertation. In the first paper I analyze an electricity market that does not clear. The system operator satisfies fixed demand at a fixed price, and attempts to minimize "cost" as indicated by independent generators' supply bids. No equilibrium exists in this situation, and the operator lacks information sufficient to minimize actual cost. As a remedy, we propose a simple efficient tax mechanism. With the tax, Nash equilibrium bids still diverge from marginal cost but nonetheless provide sufficient information to minimize actual cost, regardless of the tax rate or number of generators. The second paper examines a price mechanism with one price assigned for each level of bundled real and reactive power. Equilibrium allocation under this pricing approach raises system efficiency via better allocation of the reactive power reserves, neglected in the traditional pricing approach. Pricing reactive power should be considered in the bundle with real power since its cost is highly dependent on real power output. The efficiency of pricing approach is shown in the general case, and tested on the 30-bus IEEE network with piecewise linear cost functions of the generators. Finally the third paper addresses the problem of optimal investment in generation based on mean-variance portfolio analysis. It is assumed the investor can freely create a portfolio of shares in generation located on buses of the electrical network. Investors are risk averse, and seek to minimize the variance of the weighted average Locational Marginal Price (LMP) in their portfolio, and to maximize its expected value. I conduct simulations using a standard IEEE 68-bus network that resembles the New York - New England system and calculate LMPs in accordance with the PJM methodology for a fully optimal AC power flow solution. Results indicate that the network topology is a crucial determinant of the investment decision as line congestion makes it difficult to deliver power to

  13. Electric markets and services of the system

    International Nuclear Information System (INIS)

    Carbajo, A.

    2007-01-01

    Electricity cannot be stored in significant quantities and requires generation and demand be balanced instantly in order to control the frequency. This means that the electric system must be equipped with specific devices in order to ensure this dynamic balance. Of the services required by the electric system, some are mandatory for the generators, while others are voluntary, these last ones being those supplied under market schemes. On the other hand, the commitment of the Spanish electric system to incorporate a significant volume of renewable energy, due to its intermittent properties, demands that these adjustment services use a greater volume of this energy in order to ensure the reliability of the system at all times. Finally, securing the Iberian electric market implies that there might be variations in these services - not only in the volume but also in their characteristics. (Author)

  14. How the physical electricity markets will work in Ontario

    International Nuclear Information System (INIS)

    Murphy, P.

    1998-01-01

    The issue of how the physical electricity markets in Ontario will operate was the focus of this presentation. Principal topics addressed included a definition of the physical market, (a mechanism through which the terms and conditions, including price, for the physical exchange of a commodity are established, and delivery is realized); a discussion on the role of the Independent Market Operator; wholesale and retail electricity markets; retail market proposals; the staging of congestion pricing; and the life cycle of physical transactions and payments. Market price components were summarized, and a typical transaction from bids and offers to billing and fund transfer was illustrated

  15. Applicability Analysis of Bidding Strategy in Electricity Market

    Directory of Open Access Journals (Sweden)

    Zhou Suyan

    2017-01-01

    Full Text Available With the development of the electricity market, competition has been introduced in the generation side. It is the overall development trend of the electricity market reformulation to optimize the allocation of different resources through bidding. Therefore, it is significant to research the bidding strategies of the generation companies and the large consumers. This paper reviews the existing research methods of bidding strategy. According to the different market mechanisms, the market participators will choose different bidding strategies based on their own cases. We analyze the applicability of bidding strategies under the different conditions, and give suggestions on how to select bidding strategy for the different market participators under different conditions.

  16. State policy change: Revenue decoupling in the electricity market

    Science.gov (United States)

    McNeil, Kytson L.

    The study seeks to answer the question, why are states adopting revenue decoupling in the electricity market, by investigating the relationship between policy adoption and attributes of the electricity market, the structure of the state utility commissions, and the political climate of the state. The study examines the period 1978-2008. Two econometric models, the marginal risk set model and the conditional risk set model, are estimated to predict the influence of covariates on the probability of the state adopting revenue decoupling in the electricity market. The models are both variants of the Cox proportional hazard model and use different underlying assumptions about the nature of adoption of revenue decoupling and when the states are considered to be at risk of adoption. Results suggest that market attributes, such as the source of electricity generation in the state, state energy intensity, and the distribution of non-public and public utilities, significantly influence the adoption of the policy. Also, the method of selecting commissioners and the party affiliation of elected officials in the state are important factors. The study concludes by suggestions to improve the implementation and evaluation of revenue decoupling in the electricity markets.

  17. An electricity market without hourly metering. A working-group report

    International Nuclear Information System (INIS)

    1997-01-01

    According to the Electricity Market Act even the least consumers shall, as from 1 January, be entitled to buy electricity direct from the market if the household is equipped with an electric that registers the consumption on an hour-to-hour basis. Access to the market may, however, for the very least-consuming households remain a theoretical option because of the high price of the meters. The working group set up by the Ministry of Trade and Industry to examine the possibility of an electricity market without meters operating on an hour-to-hour basis suggests that consumers who either buy electricity at less than 45 kW or have maximum 3x63A main fuses would be allowed to buy their electricity from the market without installing a new meter. The Ministry of Trade and Industry would, according to the proposal, issue a decision on so-called type load curves. Ordinary households, electrically heated apartments and other consumers would each have a curve of their own which would describe the temporal fluctuations in electricity consumption within the category. In specific cases, the net operator (i.e. the transmitting party) could apply even other curves to take account of local features. The net operator would decide to which consumer category each customer belongs. The working group considers that the proposed change would give small enterprises electrically and even electrically heated ordinary households a genuine access to the market. For those living in blocks of flats, the electricity bill is usually so small that their benefit from a tendering practice would remain very marginal after implementation of the proposal

  18. Adaptive Portfolio Optimization for Multiple Electricity Markets Participation.

    Science.gov (United States)

    Pinto, Tiago; Morais, Hugo; Sousa, Tiago M; Sousa, Tiago; Vale, Zita; Praca, Isabel; Faia, Ricardo; Pires, Eduardo Jose Solteiro

    2016-08-01

    The increase of distributed energy resources, mainly based on renewable sources, requires new solutions that are able to deal with this type of resources' particular characteristics (namely, the renewable energy sources intermittent nature). The smart grid concept is increasing its consensus as the most suitable solution to facilitate the small players' participation in electric power negotiations while improving energy efficiency. The opportunity for players' participation in multiple energy negotiation environments (smart grid negotiation in addition to the already implemented market types, such as day-ahead spot markets, balancing markets, intraday negotiations, bilateral contracts, forward and futures negotiations, and among other) requires players to take suitable decisions on whether to, and how to participate in each market type. This paper proposes a portfolio optimization methodology, which provides the best investment profile for a market player, considering different market opportunities. The amount of power that each supported player should negotiate in each available market type in order to maximize its profits, considers the prices that are expected to be achieved in each market, in different contexts. The price forecasts are performed using artificial neural networks, providing a specific database with the expected prices in the different market types, at each time. This database is then used as input by an evolutionary particle swarm optimization process, which originates the most advantage participation portfolio for the market player. The proposed approach is tested and validated with simulations performed in multiagent simulator of competitive electricity markets, using real electricity markets data from the Iberian operator-MIBEL.

  19. Cycles in deregulated electricity markets: Empirical evidence from two decades

    International Nuclear Information System (INIS)

    Arango, Santiago; Larsen, Erik

    2011-01-01

    In this article, we discuss the 'cycle hypothesis' in electricity generation, which states that the introduction of deregulation in an electricity system might lead to sustained fluctuations of over- and under-capacity. The occurrence of cycles is one of the major threats for electricity markets as it affects the security of supply, and creates uncertainty in both the profitability of electricity companies and in consumer prices. We discuss the background for these cycles using analogies with other capital-intensive industries, along with evidence from the analysis of behavioral simulation models as well as from experimental electricity markets. Using data from the oldest deregulated markets we find support for the hypothesis in the case of the English and Chilean markets, based on an autocorrelation analysis. Evidence from the Nordpool market is more ambiguous, although we might be observing the first half of a cycle in generation capacity. Comparing a simulation of the English market performed in 1992 with the actual performance we can observe that the qualitative behavior of the model is consistent with the actual evolution. Finally, we discuss possible mechanisms for damping cycles in electricity generation, such as mothballing, capacity payments, and reliability markets. - Research highlights: → We explore the emergence of cycles in the electricity generation capacity after deregulation. → We discuss the reason for cycles in generation capacity and compare different theories. → Analysis of England and Chile data show strong indications that cycles have emerged.

  20. The value of electricity storage in energy-only electricity markets

    Science.gov (United States)

    McConnell, D.; Forcey, T.; Sandiford, M.

    2015-12-01

    Price volatility and the prospect of increasing renewable energy generation have raised interest in the potential opportunities for storage technologies in energy-only electricity markets. In this paper we explore the value of a price-taking storage device in such a market, the National Electricity Market (NEM) in Australia. Our analysis suggests that under optimal operation, there is little value in having more than six hours of storage in this market. However, the inability to perfectly forecast wholesale prices, particularly extreme price spikes, may warrant some additional storage. We found that storage devices effectively provide a similar service as peak generators (such as Open Cycle Gas Turbines) and are similarly dependent on and exposed to extreme price events, with revenue for a merchant generator highly skewed to a few days of the year. In contrast to previous studies, this results in the round trip efficiency of the storage being relatively insignificant. Financing using hedging strategies similar to a peak generator effectively reduces the variability of revenue and exposure of storage to extreme prices. Our case study demonstrates that storage may have a competitive advantage over other peaking generators on the NEM, due to its ability to earn revenue outside of extreme peak events. As a consequence the outlook for storage options on the NEM is dependent on volatility, in turn dependent on capacity requirements. Further to this, increased integration of renewable energy may both depend on storage and improve the outlook for storage in technologies in electricity markets.

  1. Research on service strategy of electricity selling company under the reform of electricity market

    Science.gov (United States)

    Long, Zhuhan; Meng, Shiyu; Dou, Jinyue; Zeng, Ming; Sun, Chenjun

    2017-10-01

    The opening of the sale side of electricity market is an important goal of the new round of power system reform in China, and it is necessary to speed up the establishment and development of the electricity selling companies to achieve this goal. First of all, this paper defines the key problems, which are needed to be solved in the establishment of the sale side market, such as demand side response, optimization of users' power consumption mode, profit mode of electricity selling companies and fair competition in the market. On this basis, this paper analyzes the business of electricity selling company, from the aspects of the transition of business ideas, improving the energy efficiency level, providing integrated energy solutions and innovating business management mode; and then, the service strategies of electricity selling companies are put forward.

  2. The impacts of EU CO2 emissions trading on electricity markets and electricity consumers in Finland

    International Nuclear Information System (INIS)

    Kara, M.; Syri, S.; Lehtilae, A.; Helynen, S.; Kekkonen, V.; Ruska, M.; Forsstroem, J.

    2008-01-01

    In this paper, the likely impacts of the EU emission trading system on the Nordic electricity market and on the position of various market actors are assessed. In its first phase, the EU CO 2 emission trading system includes power plants with thermal capacity greater than 20 MW, metals industry, pulp and paper industry, mineral industry and oil refineries. This paper describes the assessment done for the Finnish Minister of Trade and Industry, analysing the likely impacts on power plant operators, on energy-intensive industries, on other industries and on other consumer groups. The impacts of emissions trading were studied with the VTT electricity market model and with the TIMES energy system model. The annual average electricity price was found to rise 0.74 EUR MW h -1 for every 1 Euro tonne CO 2 -1 in the Nordic area. Large windfall profits were estimated to incur to electricity producers in the Nordic electricity market. In Finland, metals industry and private consumers were estimated to be most affected by the electricity market price increases. Expanded nuclear power generation could limit the increases in the prices of electricity to one-third compared to those in the base case

  3. Wholesale electricity markets in Europe; Mercados Mayoristas de Electricidad en Europa

    Energy Technology Data Exchange (ETDEWEB)

    Rios, J. L.

    2010-07-01

    Electricity Wholesale Markets provide efficient operation of power stations, facilitate hedging instruments for generators and retailers and deliver price signals for new investments. Despite having a common regulatory framework at European level whose last aim is a single electricity market, Wholesale markets have been unevenly developed in each Member State. The evolution form a spot-based market towards a forward-based market needs a certain level of liquidity, transparency and regulatory stability. Interconnections are the key element to promote the integration of electricity markets. To facilitate this, European Regional Initiatives have pushed regulatory harmonization between countries and market coupling projects. (Author)

  4. Risk management in electricity markets emphasizing transmission congestion

    International Nuclear Information System (INIS)

    Kristiansen, Tarjei

    2004-01-01

    This thesis analyzes transmission pricing, transmission congestion risks and their associated hedging instruments as well as mechanisms for stimulating investments in transmission expansion. An example of risk management in the case of a hydropower producer is included. After liberalization and restructuring of electricity markets, risk management has become important. In particular the thesis analyzes risks due to transmission congestion both in the short- and long-term (investments) for market players such as generators, loads, traders, independent system operators and merchant investors. The work is focused on the northeastern United States electricity markets and the Nordic electricity markets. The first part of the thesis reviews the literature related to the eight research papers in the thesis. This describes the risks that are relevant for an electricity market player and how these can be managed. Next, the basic ingredients of a competitive electricity market are described including the design of the system operator. The transmission pricing method is decisive for hedging against transmission congestion risks and there is an overview of transmission pricing models considering their similarities and differences. Depending on the transmission pricing method used, locational or area (zonal) pricing, the electricity market players can use financial transmission rights or Contracts for Differences, respectively. In the long-term it is important to create mechanisms for investments in transmission expansion and the thesis describes one possible approach and its potential problems. The second part comprises eight research papers. It presents empirical analyses of existing markets for transmission congestion derivatives, theoretical analyses of transmission congestion derivatives, modeling of merchant long-term financial transmission rights, theoretical analysis of the risks of the independent system operator in providing financial transmission rights, an analysis

  5. Electricity market design of the future; Strommarktdesign der Zukunft

    Energy Technology Data Exchange (ETDEWEB)

    Peek, Markus; Diels, Robert [r2b energy consulting GmbH, Koeln (Germany)

    2016-02-15

    The transformation of the power generation system, to one in which renewable energies will form a cornerstone, will change the requirements for all market actors. To achieve the goals of the German Energiewende ('energy transition'), greater flexibility in production and consumption is of particular importance. Flexibility enables the cost-effective integration of the fluctuating actual feed-in of renewable energies. On the one hand, the technical options for reducing existing technical inflexibilities are given to a considerable extent. On the other hand, analyses of the transnational compensation effects of load and renewable energy supply (RES) feed-in show that flexibility requirements can be reduced significantly in a common electricity market. Electricity markets in which there is open technological competition are an appropriate instrument for the flexibilization of the power supply system. In the short term, the mechanisms of competitive electricity markets ensure an efficient synchronization of supply and demand. Over the medium and long term, the market creates efficient incentives to adapt the generation system and the behavior of consumers to future needs, resulting from the changes in the residual load structure. But at the same time, in recent years the occurrence of negative electricity prices in situations with significantly positive residual loads show that flexibility restraints exist. The causes of these restraints are at least partly due to the market design or the regulatory framework. On the one hand, there are barriers to market entry and, on the other hand, price signals from the electricity markets do not reach all market actors or reach them distortedly. To enable the cost effective development of the different flexibility options in an open technology competition, restraints resulting from market design and the regulatory framework (e. g. in the framework of grid charges, the market and product design of control power markets

  6. Conjectural variation based learning model of strategic bidding in spot market

    International Nuclear Information System (INIS)

    Yiqun Song; Yixin Ni; Fushuan Wen; Wu, F.F.

    2004-01-01

    In actual electricity market, which operates repeatedly on the basis of one hour or half hour, each firm might learn or estimate other competitors' strategic behaviors from available historical market operation data, and rationally aims at its maximum profit in the repeated biddings. A conjectural variation based learning method is proposed in this paper for generation firm to improve its strategic bidding performance. In the method, each firm learns and dynamically regulates its conjecture upon the reactions of its rivals to its bidding according to available information published in the electricity market, and then makes its optimal generation decision based on the updated conjectural variation of its rivals. Through such learning process, the equilibrium reached in the market is proven a Nash equilibrium. Motivation of generation firm to learn in the changing market environment and consequence of learning behavior in the market are also discussed through computer tests. (author)

  7. 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.

  8. Green light for the opening of the French electricity market

    International Nuclear Information System (INIS)

    Alary-Grall, L.

    2000-01-01

    The French market of electricity is progressively opening to competitiveness. A recent act of parliament allows main industrialists to choose their electricity suppliers, this choice concerns only one third of the electricity market. A regulatory authority has been set up to assure a fair competition and a fair access to the French distribution network for electricity producers. (A.C.)

  9. Analysis of Strategic Wind Power Participation in Energy Market using MASCEM simulator

    DEFF Research Database (Denmark)

    Soares, Tiago; Santos, Gabriel; Pinto, Tiago

    2015-01-01

    offering strategy for wind power plants to participate in both energy and ancillary services markets. MASCEM (Multi-Agent System for Competitive Electricity Markets) is used to simulate and validate the impact of wind power plants in market equilibrium. A case study based on real and recent data...... technology, suggests that wind power plants may participate in both energy and ancillary services markets with strategic behavior to improve their benefits. Thus, wind power generation with strategic behavior may have impact on market equilibrium and pricing. This paper evaluates the impact of a proportional...

  10. Wind power bidding in electricity markets with high wind penetration

    International Nuclear Information System (INIS)

    Vilim, Michael; Botterud, Audun

    2014-01-01

    Highlights: • We analyze the pricing systems and wind power trading in electricity markets. • We propose a model that captures the relation between market prices and wind power. • A probabilistic bidding model can increase profits for wind power producers. • Profit maximizing bidding strategies carry risks for power system operators. • We conclude that modifications of current market designs may be needed. - Abstract: Objective: The optimal day-ahead bidding strategy is studied for a wind power producer operating in an electricity market with high wind penetration. Methods: A generalized electricity market is studied with minimal assumptions about the structure of the production, bidding, or consumption of electricity. Two electricity imbalance pricing schemes are investigated, the one price and the two price scheme. A stochastic market model is created to capture the price effects of wind power production and consumption. A bidding algorithm called SCOPES (Supply Curve One Price Estimation Strategy) is developed for the one price system. A bidding algorithm called MIMICS (Multivariate Interdependence Minimizing Imbalance Cost Strategy) is developed for the two price system. Results: Both bidding strategies are shown to have advantages over the assumed “default” bidding strategy, the point forecast. Conclusion: The success of these strategies even in the case of high deviation penalties in a one price system and the implicit deviation penalties of the two price system has substantial implications for power producers and system operators in electricity markets with a high level of wind penetration. Practice implications: From an electricity market design perspective, the results indicate that further penalties or regulations may be needed to reduce system imbalance

  11. Simulation of demand side participation in Spanish short term electricity markets

    International Nuclear Information System (INIS)

    Valencia-Salazar, I.; Alvarez, C.; Escriva-Escriva, G.; Alcazar-Ortega, M.

    2011-01-01

    Highlights: → Benefits from customer active participation can be obtained with a proper generation of bids and offers. → Simulation of Spanish customers' participation is shown in daily, intra-daily and balancing markets. → Market efficiency and economics profits arise in balancing markets by using customer load reductions. → Real market prices and real customers' consumptions profiles are used in the simulations. -- Abstract: Demand response resources management is one of the most investigated solutions oriented to improve the efficiency in electricity markets. In this paper, the capability of customers to participate in short term markets is analyzed. An available methodology to analyze the daily and monthly energy consumptions of large customers is used to create energy offers and bids. This allows customers to participate in energy markets in order to buy, as first step, the usual electricity consumption and, additionally, to offer demand reductions in the short term electricity markets. Additionally, this paper shows the customer potential to participate in the Spanish electricity markets.

  12. Convergence to the long-run equilibrium: the case of natural gas markets

    International Nuclear Information System (INIS)

    Lien, D.; Root, T.H.

    1999-01-01

    Intuitively, the persistence of a shock may last longer in futures contracts with a longer maturity. Estimation of the speed with which different contract lengths converges to the long-run equilibrium following a shock, provides a means for comparing the informational efficiency of the contracts. Standard empirical investigation of the response of a market to a shock utilizes impulse response analysis. However, this analysis is problematic since there is not a unique variance-covariance decomposition. Pesaran and Shin [Pesaran, M.H., Shin, Y., 1996. Cointegration and speed of convergence to equilibrium. J. Econ. 71, 117-143] introduced an alternative to the standard impulse response analysis, the persistence profile. By estimating the one step ahead forecast error for the entire system, the persistence profile provides a unique measure of the effect of the shock. This paper empirically estimates persistence profiles for the natural gas futures market. The findings indicate that the persistence of a shock does increase with the contract length. (Copyright (c) 1999 Elsevier Science B.V., Amsterdam. All rights reserved.)

  13. Electricity market reforms: Institutional developments, investment dynamics and game modeling

    Science.gov (United States)

    Pineau, Pierre-Olivier

    The reform trend of the 1990's in electricity markets recreates, to some extent, the institutional framework from which they developed one century ago. Although these reforms do not endeavor to completely remove regulation, the basic objectives of deregulation dwell on limiting central and governmental control over the industry in order to promote free competition at all possible levels. To assess whether the electricity industry is or is not moving back to a 19th century structure is not the goal of this thesis. We will rather try to understand on what grounds deregulation reforms stand and review how different countries and large utilities have reacted to this trend. The special nature of electricity (non-storable basic good, centrally produced) creates different obstacles in the restructuring of electricity markets, compared to other industries like the airline or telecommunication ones. For example, the dominant positions of some utilities, the production structure and the importance of electricity in modern life could transform these reforms in a threatening move for consumers. Another specific issue arising from deregulation, now that national energy policy goals no longer rule the behavior of utilities, is how investment will be coordinated in the new market. A key element to keep in sight is the competition level targeted by these reforms. To which extent full competition can really occur in electricity markets remains an unanswered question. Indeed, the oligopolistic structure of the market could prevent such an outcome. An investigation of the investment dynamics in such a context seems therefore appropriate, and this will be an important theme of the thesis. This work offers an analysis of deregulated electricity markets and studies the oligopolistic market dynamics that could prevail in the new structure. Two complementary approaches are used for these purposes. The first is institutional and presents a thorough illustration of the economic arguments

  14. The current situation and mid-term prospects for European electricity markets

    International Nuclear Information System (INIS)

    Helm, Dieter

    2013-01-01

    This analysis of the current situation and mid-term prospects for European electricity markets presents: the objectives of energy policy, the historical legacy, the attempts at European integration and the Internal Energy Market (IEM), the coming of the Climate Change Package, the impact of the world economic and Euro-zone crises, the impact of shale gas and the new world of fossil fuel abundance, the impact of renewables on emissions, the impact of renewables on electricity markets, the EU emissions trading system (EU ETS) and the renewables and the electricity markets, the coming of capacity crunch in some cases, the capacity markets, the return of central buyers and national energy policies, and what is to be done for the world electricity markets

  15. Optimal Charge control of Electric Vehicles in Electricity Markets

    DEFF Research Database (Denmark)

    Lan, Tian; Hu, Junjie; Wu, Guang

    2011-01-01

    Environment constraints, petroleum scarcity, high price on fuel resources and recent advancements in battery technology have led to emergence of Electric Vehicles (EVs). As increasing numbers of EVs enter the electricity market, these extra loads may cause peak load and need to be properly...... controlled. In this paper, an algorithm is presented for every individual vehicles to minimize the charging cost while satisfying the vehicle owner’s requirements. The algorithm is based on a given future electricity prices and uses dynamic programming. Optimization aims to find the economically optimal...... solution for each vehicle....

  16. Batteries and fuel cells for emerging electric vehicle markets

    Science.gov (United States)

    Cano, Zachary P.; Banham, Dustin; Ye, Siyu; Hintennach, Andreas; Lu, Jun; Fowler, Michael; Chen, Zhongwei

    2018-04-01

    Today's electric vehicles are almost exclusively powered by lithium-ion batteries, but there is a long way to go before electric vehicles become dominant in the global automotive market. In addition to policy support, widespread deployment of electric vehicles requires high-performance and low-cost energy storage technologies, including not only batteries but also alternative electrochemical devices. Here, we provide a comprehensive evaluation of various batteries and hydrogen fuel cells that have the greatest potential to succeed in commercial applications. Three sectors that are not well served by current lithium-ion-powered electric vehicles, namely the long-range, low-cost and high-utilization transportation markets, are discussed. The technological properties that must be improved to fully enable these electric vehicle markets include specific energy, cost, safety and power grid compatibility. Six energy storage and conversion technologies that possess varying combinations of these improved characteristics are compared and separately evaluated for each market. The remainder of the Review briefly discusses the technological status of these clean energy technologies, emphasizing barriers that must be overcome.

  17. Agent-based simulation of electricity markets : a literature review

    International Nuclear Information System (INIS)

    Sensfuss, F.; Genoese, M.; Genoese, M.; Most, D.

    2007-01-01

    The electricity sector in Europe and North America is undergoing considerable changes as a result of deregulation, issues related to climate change, and the integration of renewable resources within the electricity grid. This article reviewed agent-based simulation methods of analyzing electricity markets. The paper provided an analysis of research currently being conducted on electricity market designs and examined methods of modelling agent decisions. Methods of coupling long term and short term decisions were also reviewed. Issues related to single and multiple market analysis methods were discussed, as well as different approaches to integrating agent-based models with models of other commodities. The integration of transmission constraints within agent-based models was also discussed, and methods of measuring market efficiency were evaluated. Other topics examined in the paper included approaches to integrating investment decisions, carbon dioxide (CO 2 ) trading, and renewable support schemes. It was concluded that agent-based models serve as a test bed for the electricity sector, and will help to provide insights for future policy decisions. 74 refs., 6 figs

  18. 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.)

  19. 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)

  20. 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)

  1. Self-employment in an equilibrium model of the labor market

    Directory of Open Access Journals (Sweden)

    Jake Bradley

    2016-06-01

    Full Text Available Abstract Self-employed workers account for between 8 and 30 % of participants in the labor markets of OECD countries (Blanchower, Self-employment: more may not be better, 2004. This paper develops and estimates a general equilibrium model of the labor market that accounts for this sizable proportion. The model incorporates self-employed workers, some of whom hire paid employees in the market. Employment rates and earnings distributions are determined endogenously and are estimated to match their empirical counterparts. The model is estimated using the British Household Panel Survey (BHPS. The model is able to estimate nonpecuniary amenities associated with employment in different labor market states, accounting for both different employment dynamics within state and the misreporting of earnings by self-employed workers. Structural parameter estimates are then used to assess the impact of an increase in the generosity of unemployment benefits on the aggregate employment rate. Findings suggest that modeling the self-employed, some of whom hire paid employees implies that small increases in unemployment benefits leads to an expansion in aggregate employment. JEL Classification J21, J24, J28, J64

  2. Modelling the impact of market interventions on the strategic evolution of electricity markets

    International Nuclear Information System (INIS)

    Bunn, Derek W.; Oliveira, Fernando S.

    2005-01-01

    In this paper, we seek to develop some model-based insights into this two-stage dynamic process linking market interventions with individual company performance through strategic asset trading and structural change. Essentially, this is achieved with an evolutionary, agent-based, computational model that is capable of simulating how a Cournot player, by interacting with his opponents, can rationally adapt his generation portfolio in order to increase value. The functional capabilities of the proposed computational approach facilitate: 1) The study of asset portfolio adaptation as a result of rational choice. This cannot be achieved with a static Cournot model that, by construction, does not take into account endogenously the rational choice of the installed capacities and technologies used by the players. Further, this evolutionary computational model internalizes the ''path dependencies'' as one of the determinants of portfolio adaptation. 2) The analysis of market structure as an endogenous co-evolutionary process, enabling an adaptive view of the impact of short-term regulatory policies on the evolution of the industry's market structure. 3) The analysis of the behavioural implications f the rational adaptation of players to regulatory interventions. This analysis is carried-out by modelling how players trade their assets in order to improve the value of their portfolio. Our model therefore incorporates two main components: a plant trading game and an electricity market game. The plant trading game simulates the interaction between electricity companies that trade generation plants. The electricity market game simulates the performance of portfolios of plant in an electricity market assuming Cournot players. From this two-stage modelling platform, we analyze two sorts of anti-trust interventions: (a) the ''structural changes'' of enforced divestiture and (b) the ''behavioural remedies'' (sic Competition commission) of capacity availability requirements. We have

  3. Liberalization of the Flemish market for electricity and natural gas

    International Nuclear Information System (INIS)

    2002-01-01

    In this first report of the Flemish Regulating Institute for the Electricity and Natural Gas Market (VREG) only attention is paid to the market for electricity. Every 3 months a state of the art will be given of the liberalization process of the energy market in Flanders [nl

  4. Particle Swarm Optimization of Electricity Market Negotiating Players Portfolio

    DEFF Research Database (Denmark)

    Pinto, Tiago; Vale, Zita; Sousa, Tiago

    2014-01-01

    Energy systems worldwide are complex and challenging environments. Multi-agent based simulation platforms are increasing at a high rate, as they show to be a good option to study many issues related to these systems, as well as the involved players at act in this domain. In this scope the authors......, the type of day (business day, weekend, holiday, etc.) and most important, the renewable based distributed generation forecast. The proposed approach is tested and validated using real electricity markets data from the Iberian operator – MIBEL.......’ research group has developed a multi-agent system: MASCEM (Multi- Agent System for Competitive Electricity Markets), which performs realistic simulations of the electricity markets. MASCEM is integrated with ALBidS (Adaptive Learning Strategic Bidding System) that works as a decision support system...... for market players. The ALBidS system allows MASCEM market negotiating players to take the best possible advantages from each market context. However, it is still necessary to adequately optimize the players’ portfolio investment. For this purpose, this paper proposes a market portfolio optimization method...

  5. Settlements and the future Ontario wholesale electricity market

    International Nuclear Information System (INIS)

    Kozlik, K.

    1998-01-01

    Settlement system processes which are likely to be in place in Ontario's new deregulated electricity market are discussed. Electricity settlements, i. e. the collection of metered and operational data, the processing of that data to ensure its integrity, the analysis of the data, the determination of payment, and the administration of the required transfer of funds, are analyzed. Some of the actions that those processes will require of prospective wholesale market participants are outlined. The paper also explains why it is that the settlement processes drove certain pivotal market design decisions

  6. Simulation of power plant construction in competitive Korean electricity market

    International Nuclear Information System (INIS)

    Ahn, Nam Sung; Huh, Sung Chul

    2001-01-01

    This paper describes the forecast of power plant construction in competitive Korean electricity market. In Korea, KEPCO (Korean Electric Power Corporation, fully controlled by government) was responsible for from the production of the electricity to the sale of electricity to customer. However, the generation part is separated from KEPCO and six generation companies were established for whole sale competition from April 1st, 2001. The generation companies consist of five fossil power companies and one nuclear power company. Fossil power companies are schedule to be sold to private companies including foreign investors. Nuclear power company is owned by government. The competition in generation market will start from 2003. ISO (Independence System Operator) will purchase the electricity from the power exchange market. The market price is determined by the SMP (System Marginal Price) which is decided by the balance between demand and supply of electricity in power exchange market. Under this uncertain circumstance, the energy policy planners are interested to the construction of the power plant in the future. These interests are accelerated due to the recent shortage of electricity supply in California. In the competitive market, investors are no longer interested in the investment for the capital intensive, long lead time generating technologies. Large nuclear and coal plants were no longer the top choices. Instead, investors in the competitive market are interested in smaller, more efficient, cheaper, cleaner technologies such as CCGT (Combined Cycle Gas Turbine). Electricity is treated as commodity in the competitive market. The investor's behavior in the commodity market shows that the new investment decision is made when the market price exceeds the sum of capital cost and variable cost of the new facility and the existing facility utilization depends on the marginal cost of the facility. This investor's behavior can be applied to the new investments for the

  7. Liberalization of electricity markets and energy security

    International Nuclear Information System (INIS)

    Yajima, Masayuki

    2004-01-01

    Liberalization of electricity markets begun in England in 1990 and became the trends of the times. Its effects on the energy security and atomic power generation are discussed. On the effects on energy security, change of construction of fuel of power generation, decrease of fuel feed by high efficiency of power generation, decrease of fuel stock by pressure of cost-cutting, increase of import rate of electricity, increase of power consumption with decrease of power cost, flexibility of supply contract, diversification of service, international cooperation on energy security and mutual dependence relation by international investment are discussed. On the effects of liberalization on the electricity markets, characteristics of nuclear power generation, risk of investment, effects of introduction of competition on development of the existing and new nuclear power generation, relation between development of nuclear power generation and market failure and what the government should do for development of nuclear power generation are discussed. (S.Y.)

  8. Equilibrium problems with complementarity constraints: case study with applications to oligopolistic markets

    Czech Academy of Sciences Publication Activity Database

    Mordukhovich, B. S.; Outrata, Jiří; Červinka, Michal

    2007-01-01

    Roč. 56, č. 4 (2007), s. 479-494 ISSN 0233-1934 R&D Projects: GA AV ČR IAA1030405 Institutional research plan: CEZ:AV0Z10750506 Keywords : equilibrium problems with complementarity constraints * multiobjective optimization * necessary optimality conditions * numerical methods * oligopolistic market s Subject RIV: BA - General Mathematics Impact factor: 0.408, year: 2007

  9. Independent power and cogeneration in Ontario's new competitive electricity market

    International Nuclear Information System (INIS)

    Barnstable, A.G.

    1999-01-01

    The factors influencing the initial market pricing in the early years of Ontario's new electricity market were discussed with particular insight on the potential for near term development of independent power and cogeneration. The major factors influencing prices include: (1) no increase in retail prices, (2) financial restructuring of Ontario Hydro, (3) the Market Power Mitigation Agreement, (4) tighter power plant emissions standards, and (5) an electricity supply and demand balance. Generation competition is not expected to influence market pricing in the early years of the new electricity market. Prices will instead reflect the restructuring decisions of the Ontario government. The decision to have Ontario Power Generation Inc. (OPGI) as a single generator for Ontario Hydro's generation assets will ensure that average spot market pricing in the early market years will be close to a 3.8 c/kWh revenue cap

  10. Evaluating the market splitting determinants: evidence from the Iberian spot electricity prices

    International Nuclear Information System (INIS)

    Figueiredo, Nuno Carvalho; Silva, Patrícia Pereira da; Cerqueira, Pedro A.

    2015-01-01

    This paper aims to assess the main determinants on the market splitting behaviour of the Iberian electricity spot markets. Iberia stands as an ideal case-study, where the high level deployment of wind power is observed, together with the implementation of the market splitting arrangement between the Portuguese and the Spanish spot electricity markets. Logit and non-parametric models are used to express the probability response for market splitting of day-ahead spot electricity prices as a function of the explanatory variables representing the main technologies in the generation mix: wind, hydro, thermal and nuclear power, together with the available transfer capacity and electricity demand. Logit models give preliminary indications about market splitting behaviour, and then, notwithstanding the demanding computational challenge, a non-parametric model is applied in order to overcome the limitations of the former models. Results show an increase of market splitting probability with higher wind power generation or, more generally, with higher availability of low marginal cost electricity such as nuclear power generation. The European interconnection capacity target of 10% of the peak demand of the smallest interconnected market might be insufficient to maintain electricity market integration. Therefore, pro-active coordination policies, governing both interconnections and renewables deployment, should be further developed. -- Highlights: •Assess determinants on market splitting behaviour of Iberian electricity markets. •Logit and non-parametric models to express market splitting probability response. •Explanatory variables: wind, hydro, thermal and nuclear power; ATC and demand. •Results: increase of market splitting probability with higher availability of low marginal cost electricity. •Coordination policies governing both interconnections and renewables deployment

  11. The liberalisation of the European electricity market : an unstructured restructuring process?

    International Nuclear Information System (INIS)

    Boisseleau, F.; Hakvoort, R.

    2005-01-01

    The European Union (EU) directive 96/92/EC defines common rules for the generation, transmission and distribution of electricity, paving the way for the liberalization of the electricity markets of EU member states. Member states are obliged to open their national electricity supply markets, meaning that eligible customers can choose their own suppliers. This paper discussed the process by which the countries of the EU have restructured their electricity markets, arguing that the process has focused on legal and organizational issues, rather than specific prescriptions for the economic design of the market. Although the objective of the EU directive was to create a competitive market, restructuring has led to 15 or more fragmented markets, each liberalized to a different degree and shaped following a wide range of different principles. Areas where the EU has failed to provide a coherent market view were discussed. Issues concerning short-term market arrangements, congestion management and long-term investment were examined. Section 1 of the paper focused on policy issues in the liberalization process, while section 2 emphasized the importance of market design. Section 3 addressed the need for market monitoring and the issue of market power. It was concluded that liberalization is only one step in the process that alone cannot deliver the expected benefits of single integrated European-wide market. At present, the European electricity ma