The benefits of integrating European electricity markets

International Nuclear Information System (INIS)

Newbery, David; Strbac, Goran; Viehoff, Ivan

2016-01-01

The European Commission's Target Electricity Model (TEM) aims to integrate EU electricity markets. This paper estimates the potential benefit of coupling interconnectors to increase the efficiency of trading day-ahead, intra-day and balancing services across borders. Further gains are possible by eliminating unscheduled flows and avoiding the curtailment of renewables with better market design. In the short run the gains could be as high as €3.9 billion/yr, more than 100% of the current gains from trade. About one-quarter of this total comes from day-ahead coupling and another third from shared balancing. If shared balancing is so valuable, completing the TEM becomes more urgent, and regulators should ensure these gains are paid to interconnectors to make the needed investment in the cross-border links more commercially profitable. - Highlights: •The benefits from day-ahead market coupling are €1 bn/yr. •Intra-day and balancing benefits add a further €1.3 bn/yr. •Total benefits including removing unscheduled flows could be €3.4 bn/yr. •Sharing balancing and reserves is high priority. •Rewarding interconnectors for all services reduces barriers to expansion.

Global electricity transformation: The critical need for integrated market design and risk management research

International Nuclear Information System (INIS)

Hung-po Chao

2006-01-01

The past three decades transformed the electricity industry. The essential goals of liberalization have been to lower costs, improve reliability, and stimulate investment and innovations through establishment of competitive electricity markets, while also relying on market mechanisms to provide creative solutions to environmental and security problems. In many instances, these goals have been achieved, but the occurrence of some spectacular market failures have brought into question the whole restructuring effort. This paper reviews recent experiences with market reform and concludes that a significant cause of failure has been the rush to unbundle vertically integrated utilities without sufficient consideration of alternative ways to manage the risk of electricity market restructuring. In particular, there is a critical need for integrated market design and risk management research to improve the process of market transformation by taking a more evolutionary approach to discover a 'Third Way' above vertical integration and full unbundling. Such research can offer a crucial feedback link to the restructuring process by identifying important lessons to be learned from past experience and developing new analytical tools to help introduce more successful market designs for the future. (author)

The Integrated Nordic End-User Electricity Market - Feasibility and identified obstacles

International Nuclear Information System (INIS)

2006-02-01

The report identifies the various obstacles that currently exist which prevent the formation of a truly integrated Nordic electricity end-user market. The obstacles have been divided into three categories: technical, regulatory and commercial. NordREG proposes that to further integrate the Nordic end-user electricity markets, a number of differences of technical, legal and market nature ought to be gradually harmonized in order to facilitate market entry and cross-border trade. Technical obstacles: Especially the following problems related to the data and metering systems should be solved: Transferred messages, information and message timing should be harmonised; Message format should be decided; A common data transmission protocol should be specified. New solutions like web-based solutions should be studied; The identification of the final customers' metering point should be harmonised. Regulatory obstacles: The identified regulatory obstacles relate to three areas, namely the division of tasks between monopoly and competitive activities, the operation and duties of distribution network operators including how these are regulated, and the legal framework to provide protection for small end users. On the basis of the review of regulatory obstacles, the following recommendations are made: The principles of neutrality and the way these principles are being supervised by the regulator is a key issue to improve the functioning of the Nordic end-user market. Regulators should seek to harmonise regulation on neutrality and put it high on the agenda in a forthcoming process of market integration; The procedures for switching supplier should be as smooth, easy and quick as possible. It is also important that suppliers, especially the new market entrants, can participate in reliable, transparent and fluent switching practices, since this lowers the threshold for entering other than domestic electricity market. The switching model should be harmonised for the Nordic end

The Integrated Nordic End-User Electricity Market - Feasibility and identified obstacles

Energy Technology Data Exchange (ETDEWEB)

NONE

2006-02-15

The report identifies the various obstacles that currently exist which prevent the formation of a truly integrated Nordic electricity end-user market. The obstacles have been divided into three categories: technical, regulatory and commercial. NordREG proposes that to further integrate the Nordic end-user electricity markets, a number of differences of technical, legal and market nature ought to be gradually harmonized in order to facilitate market entry and cross-border trade. Technical obstacles: Especially the following problems related to the data and metering systems should be solved: Transferred messages, information and message timing should be harmonised; Message format should be decided; A common data transmission protocol should be specified. New solutions like web-based solutions should be studied; The identification of the final customers' metering point should be harmonised. Regulatory obstacles: The identified regulatory obstacles relate to three areas, namely the division of tasks between monopoly and competitive activities, the operation and duties of distribution network operators including how these are regulated, and the legal framework to provide protection for small end users. On the basis of the review of regulatory obstacles, the following recommendations are made: The principles of neutrality and the way these principles are being supervised by the regulator is a key issue to improve the functioning of the Nordic end-user market. Regulators should seek to harmonise regulation on neutrality and put it high on the agenda in a forthcoming process of market integration; The procedures for switching supplier should be as smooth, easy and quick as possible. It is also important that suppliers, especially the new market entrants, can participate in reliable, transparent and fluent switching practices, since this lowers the threshold for entering other than domestic electricity market. The switching model should be harmonised for the Nordic end

Germany's nuclear power plant closures and the integration of electricity markets in Europe

International Nuclear Information System (INIS)

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

2015-01-01

This paper examines the potential implications of national policies that lead to a sudden increase of wind power in the electricity mix for interconnected European electricity markets. More specifically, it examines market integration before and after the closures of eight nuclear power plants that occurred within a period of a few months in Germany during 2011. The short- and- long run interrelationships of daily electricity spot prices, from November 2009 to October 2012, in: APX-ENDEX, BELPEX, EPEX-DE, EPEX-FR, NORDPOOL, OMEL and SWISSIX; and wind power in the German system are analysed. Two MGARCH (Multivariate Generalized Autoregressive Conditional Heteroscedasticity) models with dynamic correlations are used to assess spot market behaviour in the short run, and a fractional cointegration analysis is conducted to investigate changes in the long-run behaviour of electricity spot prices. Results show: positive time-varying correlations between spot prices in markets with substantial shared interconnector capacity; a negative association between wind power penetration in Germany and electricity spot prices in the German and neighbouring markets; and, for most markets, a decreasing speed in mean reversion. -- Highlights: •Associations between spot prices and wind power are time-varying. •Greater spot price and volatility associations across markets are observed. •In the long run, the German market is less integrated with neighbouring markets. •Policies on a local electricity mix can affect spot prices in connected markets

Research document no. 24. The integration of european electric markets: from the national markets juxtaposition to the establishment of a regional market

International Nuclear Information System (INIS)

Finon, D.

2000-11-01

After the transcription of the electricity directive in national legislations, the European electricity market appears to be a vast set of juxtaposed markets which are weakly connected at the level of their wholesale contracts compartment. Referring to the technological peculiarities of electricity as a commodity, the paper identifies the direct conditions of regional integration of the electricity markets, those which would favour cross-border trade and allow to be near the normal functioning of a regional commodity market. The infrastructure network dependence and the need of a stringent technical coordination necessitate to unify the operation of the different systems and the rules of access, or at the least to come near this unification by strong coordination. A second major condition, which is not fully debated, is the increasing connexion of short-term markets, via daily physical trade and emergence of a European financial market, which could trade various standardised contracts referring to a single hourly spot price, or to prices in various delivery points. To reach such an integration, two paths are possible: either concentration into one single organised power exchange as the Nordic pool, or rules harmonization of the various power exchanges which would be a minimal requirement to allow arbitrations between them. (author)

Electricity market integration: Redistribution effect versus resource reallocation

International Nuclear Information System (INIS)

Finon, Dominique; Romano, Elliot

2009-01-01

Summary: In countries with a significant amount of low variable cost generation capacity, the integration of electricity markets poses a real problem with respect to consumers' interests. In such cases, consumers face a significant price rise compared with consumers in countries where low-cost capacities are lacking. This paper analyses this problem both in the short and long term, focusing on a market dominated by nuclear and hydro production. When there are too many restrictions on new capacity developments in low-cost technologies, market integration will lead to surplus redistribution without any production reallocation. This really makes it legitimate to contemplate redistributive compensations towards local consumers in countries which benefited from low variable cost generators at the moment of liberalisation. This paper examines two alternative ways of rent reallocation, one by income with a windfall tax on nuclear producers and the allocation of this revenue to energy efficiency policy funds, and another by price by giving drawing rights on the existing nuclear generators' production to small commercial and domestic consumers, at a level equivalent to the one necessary to maintain regulated prices.

Electric vehicle integration in a real-time market

DEFF Research Database (Denmark)

Pedersen, Anders Bro

with an externally simulated model of the power grid, it is be possible, in real-time, to simulate the impact of EV charging and help to identify bottlenecks in the system. In EDISON the vehicles are aggregated using an entity called a Virtual Power Plant (VPP); a central server monitoring and controlling...... the distributed energy resources registered with it, in order to make them appear as a single producer in the eyes of the market. Although the concept of a VPP is used within the EcoGrid EU project, the idea of more individual control is introduced through a new proposed real-time electricity market, where......This project is rooted in the EDISON project, which dealt with Electrical Vehicle (EV) integration into the existing power grid, as well as with the infrastructure needed to facilitate the ever increasing penetration of fluctuating renewable energy resources like e.g. wind turbines. In the EDISON...

The integrated North American electricity market : assuring an adequate supply of electricity through cross-border cooperation and trade

International Nuclear Information System (INIS)

Egan, T.

2005-03-01

The purpose of this paper is to support cooperation and discussion of the long-term sufficiency of the electricity trading system between Canada and the United States. It discusses the integrated electricity market including details on exports and imports of electricity, major transmission interconnections, the economic and environmental benefits of an integrated market and electricity generation statistics by fuel source. The paper also discusses several areas of cooperation and presents several recommendations including: greater dialogue on regional supply requirements; mandatory reliability standards; coordinated regulatory approaches to new cross-border transmission; the role of emerging generation and transmission technologies; opportunities to exchange experience and learning on demand-side measures; coordinated strategies to manage greenhouse gas and other air pollutants; and, critical infrastructure protection. The paper concludes that the integration between Canada and the United States will only increase as energy demand and trade continue to grow, making close cooperation between the two countries a necessity. 6 figs

Opportunity for inter-regional integration of electricity markets: the case of Shandong and Shanghai in East China

International Nuclear Information System (INIS)

Gnansounou, Edgard; Dong Jun

2004-01-01

In this paper, the opportunity for the inter-regional integration of the electricity market in East China is analysed on the basis of strategies for the future expansion of the electricity generation system. We assume that during its first stage, the operational breakthrough of the electricity sector reform in China will be to achieve an economic dispatch of the generating plants. On the basis of this assumed goal a multi-region model is proposed to appraise the potential benefits of an integrated inter-regional electricity market. This model includes: propositions on design and operation of the market, electricity demand forecasting, least-cost generating system expansion. As case study, three strategies of electricity supply are assessed in two provinces: Shandong and Shanghai in East China. While Shandong is a potential electricity exporter due to availability of primary energy resources, Shanghai is an electricity importer. The strategies include: autarkical expansion of each regional system, import/export only for minimizing operation costs, integration of the system expansion for minimizing total costs including operation and investment costs. One of the findings is that building up an inter-regional integrated electricity market is profitable for both the Shanghai and Shandong regions compared with the two other strategies, if the future regulation makes it possible to insure an economic dispatch of the generating power plants

Integration scenarios of Demand Response into electricity markets: Load shifting, financial savings and policy implications

International Nuclear Information System (INIS)

Feuerriegel, Stefan; Neumann, Dirk

2016-01-01

Demand Response allows for the management of demand side resources in real-time; i.e. shifting electricity demand according to fluctuating supply. When integrated into electricity markets, Demand Response can be used for load shifting and as a replacement for both control reserve and balancing energy. These three usage scenarios are compared based on historic German data from 2011 to determine that load shifting provides the highest benefit: its annual financial savings accumulate to €3.110 M for both households and the service sector. This equals to relative savings of 2.83% compared to a scenario without load shifting. To improve Demand Response integration, the proposed model suggests policy implications: reducing bid sizes, delivery periods and the time-lag between market transactions and delivery dates in electricity markets. - Highlights: •Comparison of 3 scenarios to integrate Demand Response into electricity markets. •These are: optimize procurement, offer as control reserve, avoid balancing energy. •Ex post simulation to quantify financial impact and policy implications. •Highest savings from load shifting with a cost reduction of 3%. •Model suggests reducing bid sizes, delivery periods and time lags as policy issues.

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)

Proceedings of the CERI 2005 electricity conference : markets, integration, resistance

International Nuclear Information System (INIS)

2005-01-01

This conference was attended by power industry decision makers who face continuing challenges regarding changes in electricity market mechanisms, pricing options, and power generation and transmission alternatives. It provided an opportunity to review energy markets in North American with particular reference to supply and demand and opportunities for traditional or new generation technologies based on renewable energy sources including wind powered generation. The presentations focused on transmission issues, market design and capacity issues as well as market power and pricing. The integration of wind energy into the power grid as a measure to diversity the power generation portfolio in North America was also discussed along with hydrothermal synergies and interconnections. The role of wind, coal and nuclear power in future North American energy markets was also discussed along with their environmental consequences. tabs., figs

Integrating intermittent energy sources in liberalized electricity markets: from technical costs to economic penalties as a result of market rules

International Nuclear Information System (INIS)

Menanteau, Ph.; Finon, D.; Lamy, M.L.

2003-06-01

With the aim of preventing climatic change and ensuring the security of energy supplies, the recent European Directive on renewable energy production sources is aimed at bringing about a very substantial increase in electricity production from renewable sources in Europe by the 2010 horizon. Generally speaking, production of electricity from renewable sources will be assured by biomass and wind, and to a lesser extent by micro hydro, technologies whose characteristics are very different from the point of view of their integration into the electricity system. Their inclusion in the electricity systems will cause problems because of the intermittent nature of the production, a factor that does not enter into the paradigms of producers, system operators or regulators. The problems raised by the integration of intermittent production are technical in nature (risk of non-availability in peak periods, the need for additional reserves) and will incur adjustment costs, but the way in which the electricity markets function will impose economic penalties generally more substantial than the added technical costs. In this paper are examined in succession: (i) the additional costs raised by intermittence; (ii) the economic penalties imposed by the operating rules of de-regulated electricity markets with electricity production from renewable sources included, with particular reference to the case of the British and Nordic markets; and (iii) an analysis of the options that could limit the gap between the additional cost of intermittent production for the system and the adjustment surcharges imposed by the electricity markets, with the aim of reducing the tension between the deregulation of the electricity market and promoting the development of renewable energy sources. (A.L.B.)

The integrated North American electricity market : investment in electricity infrastructure and supply : a North American concern

International Nuclear Information System (INIS)

Egan, T.

2006-03-01

Electricity supply and infrastructure solutions for the United States and Canada were discussed along with the availability of fuel supply and the diversity of fuel sources. This document focuses on investment in transmission infrastructure in order to assure sustainable generation sources for both countries while addressing constraints along the border, which will allow for enhanced cross-border trade. The Canadian Electricity Association has proposed 3 areas of bi-national cooperation to promote effective investment in electricity infrastructure and supply in the North American market: (1) cooperation in enhancing electricity supply, (2) cooperation in enhancing transmission infrastructure, and (3) cooperation in addressing air quality issues and climate change. The report discussed electricity generation by fuel source in Canada and the United States; status of restructuring in Canada; as well as the economic and environmental benefits of an integrated market. It also discussed regulatory and policy matters affecting the investment environment. Last, it discussed the need for opportunities for investment in the North American market, distribution and demand side measures, and cooperation in enhancing transmission infrastructure. It was concluded that growing electricity demand in both the United States and Canada requires investment in electricity infrastructure and supply in the future. Resolving electricity infrastructure and supply needs must be an international concern, requiring the full engagement and cooperation of both countries. 1 tab, 2 figs

Pros and cons of exposing renewables to electricity market risks-A comparison of the market integration approaches in Germany, Spain, and the UK

International Nuclear Information System (INIS)

Klessmann, Corinna; Nabe, Christian; Burges, Karsten

2008-01-01

The article examines how renewable electricity (RES-E) producers are integrated into the electricity market under the support legislations and regulatory frameworks of Germany, Spain, and the UK. Focus is on wind power, which faces the highest market integration challenge of all RES-E. The analysis shows that the three countries follow contrasting approaches of exposing RES-E producers to the market risks of forward electricity markets, balancing markets and system planning requirements. Risk exposure is highest in the UK and lowest in Germany. From a policy maker's perspective, there is a trade-off between a 'high risk' and a 'low risk' approach. When RES-E face high market risks, a higher level of financial support is required to stimulate RES-E development than in a low risk environment, but the exposure to market risks may also give an incentive to make efficient use of the respective market, thus limiting the indirect costs to society. The special characteristics of wind energy, however, put natural limits to the response of wind power plants to market prices and locational price signals and will increasingly influence electricity markets and grid infrastructure. These interdependencies should be recognised in the design of RES-E policies and market regulations

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

Retail margins and the effects of an integrated Nordic end user market for electricity

Energy Technology Data Exchange (ETDEWEB)

Damsgaard, Niclas; Roempoetti, Marie

2007-09-15

There is an ongoing discussion about the need for further and deeper integration of the Nordic electricity market. Following the Nordic Council of Minister's summit in Akureyri in 2004 this work has been intensified. NordREG and Nordel have produced several studies on the integration of the market. Work is currently being done on a Nordic common market platform for balancing services and a Nordic balancing agreement, the market design for a common market and a common model for supply switches and several other issues. This study should be seen in relationship with these other studies and we have deliberately aimed at avoiding overlaps. An integrated Nordic retail market for electricity would in principle imply a common market for 14 million customers served by several hundred retail companies. The question asked in this study is what are the benefits for the customers of such a development? In order to create a common Nordic market there are several barriers that needs to be overcome. There are technical barriers such as differences in IT-systems, regulatory barriers caused by differences in e.g. the responsibilities and the regulation of the DSOs and finally of course business barriers that exists for all cross-border businesses. A well-functioning Nordic retail market would lead to price equalisation - at least if the costs are equal. This would mean that particularly customers in areas with high retail margins could benefit from a joint Nordic market. Furthermore, dilution of market power could lead to more intense competition which in turn both could lead to lower costs and lower margins. In this report we focus on the possible direct effects on prices. In addition to this it is likely that there are efficiency gains, for instance through decreased costs in developing IT-systems etc. for a larger market which would decrease costs both for the suppliers and for DSOs. There might also be other economies-of-scales arising from a larger market. The possible

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)

Cross-border integration in the European electricity market. Evidence from the pricing behavior of Norwegian and Swiss exporters

International Nuclear Information System (INIS)

Balaguer, Jacint

2011-01-01

This paper examines the electricity market integration process in two European areas based on the pricing behavior of Norwegian and Swiss exporters. The aim is to gain evidence for the period after the adoption of the 'Second Legislative Package' (2003). The pricing behavior of Norwegian exporters indicates that the wholesale markets for Denmark and Sweden are highly integrated. Moreover, results are fully compatible with the existence of a very competitive marketplace for electricity. This clearly contrasts with the evidence provided by Swiss exporters. In this last case, analysis revealed differences in pricing-to-market behavior between Italy, France and Germany, which indicates that exporters take advantage of international market segmentation and divergences between market structures. This outcome provides a reasonable explanation as to why price differences between countries cannot be fully attributed to transmission costs, as has been claimed in previous research. We also found cross-country convergence in levels of markups and in pricing-to-market behavior of the Swiss exporters for the first part of the period that was analyzed. The evidence is fully consistent with an initial impulse toward market integration originated by reforms implemented at the beginning of the last decade. - Highlights: → We exploit a model based on pricing-to-market behavior. → Price discrimination by Swiss exporters is found. → Nordic electricity markets are found to be already highly integrated. → Market integration was recently improved in continental area. → Results are consistent with reforms under the 'Second Legislative Package'.

Cross-border integration in the European electricity market. Evidence from the pricing behavior of Norwegian and Swiss exporters

Energy Technology Data Exchange (ETDEWEB)

Balaguer, Jacint, E-mail: jacint.balaguer@eco.uji.es [Department of Economics, Universitat Jaume I, 12071 Castellon (Spain)

2011-09-15

This paper examines the electricity market integration process in two European areas based on the pricing behavior of Norwegian and Swiss exporters. The aim is to gain evidence for the period after the adoption of the 'Second Legislative Package' (2003). The pricing behavior of Norwegian exporters indicates that the wholesale markets for Denmark and Sweden are highly integrated. Moreover, results are fully compatible with the existence of a very competitive marketplace for electricity. This clearly contrasts with the evidence provided by Swiss exporters. In this last case, analysis revealed differences in pricing-to-market behavior between Italy, France and Germany, which indicates that exporters take advantage of international market segmentation and divergences between market structures. This outcome provides a reasonable explanation as to why price differences between countries cannot be fully attributed to transmission costs, as has been claimed in previous research. We also found cross-country convergence in levels of markups and in pricing-to-market behavior of the Swiss exporters for the first part of the period that was analyzed. The evidence is fully consistent with an initial impulse toward market integration originated by reforms implemented at the beginning of the last decade. - Highlights: > We exploit a model based on pricing-to-market behavior. > Price discrimination by Swiss exporters is found. > Nordic electricity markets are found to be already highly integrated. > Market integration was recently improved in continental area. > Results are consistent with reforms under the 'Second Legislative Package'.

Integrating Variable Renewable Energy in Electric Power Markets: Best Practices from International Experience

Energy Technology Data Exchange (ETDEWEB)

Cochran, J.; Bird, L.; Heeter, J.; Arent, D. A.

2012-04-01

Many countries -- reflecting very different geographies, markets, and power systems -- are successfully managing high levels of variable renewable energy on the electric grid, including that from wind and solar energy. This study documents the diverse approaches to effective integration of variable renewable energy among six countries -- Australia (South Australia), Denmark, Germany, Ireland, Spain, and the United States (Western region-Colorado and Texas)-- and summarizes policy best practices that energy ministers and other stakeholders can pursue to ensure that electricity markets and power systems can effectively coevolve with increasing penetrations of variable renewable energy. Each country has crafted its own combination of policies, market designs, and system operations to achieve the system reliability and flexibility needed to successfully integrate renewables. Notwithstanding this diversity, the approaches taken by the countries studied all coalesce around five strategic areas: lead public engagement, particularly for new transmission; coordinate and integrate planning; develop rules for market evolution that enable system flexibility; expand access to diverse resources and geographic footprint of operations; and improve system operations. The ability to maintain a broad ecosystem perspective, to organize and make available the wealth of experiences, and to ensure a clear path from analysis to enactment should be the primary focus going forward.

Integration of renewable energies in the electricity market; Integration erneuerbarer Energien in den Strommarkt

Energy Technology Data Exchange (ETDEWEB)

Schwarz, Eike

2014-08-15

Capacity markets such as the decentralised performance market as demanded by the electricity economy put wind power and photovoltaic plants at a disadvantage. The author therefore argues against the establishment of a capacity market and in favour of making better use of the electricity market's already existing significant potential for further development, specifically through: flexibilisation of exchange electricity markets, closer coupling between exchange electricity markets and control energy markets, and incorporation of electricity consumers into the market mechanism. This would at the same time serve to meet a decisive prerequisite for a smooth transition from today's to tomorrow's electricity supply, and that is a single electricity market for conventional power plants as well as electricity production plants fuelled with renewable resources, whether or not entailing fuel costs, in which all types of plants compete with each other on a level playing field. If a capacity market should prove necessary after all in a few years, it can still be set up. Safeguarding security of supply is of vital importance for both the economy and society at large. For emergencies a strategic reserve with a capacity of several GW should therefore be created, and the Ordinance on Reserve Power Plants should be amended to this effect. The establishment by the Renewable Energy Law of 2014 of an obligation of direct marketing for wind power and photovoltaic plants appears to have been premature considering the deficits of the electricity market and the large fleet of inflexible conventional power plants. What is needed now is a near-term flexibilisation of the electricity market and reform of the CO{sub 2} emissions trading scheme.

Integrating Variable Renewable Energy in Electric Power Markets. Best Practices from International Experience

Energy Technology Data Exchange (ETDEWEB)

Cochran, Jaquelin [National Renewable Energy Lab. (NREL), Golden, CO (United States); Bird, Lori [National Renewable Energy Lab. (NREL), Golden, CO (United States); Heeter, Jenny [National Renewable Energy Lab. (NREL), Golden, CO (United States); Arent, Douglas J. [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2012-04-30

Many countries—reflecting very different geographies, markets, and power systems—are successfully managing high levels of variable renewable energy on the electric grid, including that from wind and solar energy. This document summarizes policy best practices that energy ministers and other stakeholders can pursue to ensure that electricity markets and power systems can effectively coevolve with increasing penetrations of variable renewable energy. There is no one-size-fits-all approach; each country studied has crafted its own combination of policies, market designs, and system operations to achieve the system reliability and flexibility needed to successfully integrate renewables. Notwithstanding this diversity, the approaches taken by the countries studied all coalesce around five strategic areas: lead public engagement, particularly for new transmission; coordinate and integrate planning; develop rules for market evolution that enable system flexibility; expand access to diverse resources and geographic footprint of operations; and improve system operations. This study also emphatically underscores the value of countries sharing their experiences. The more diverse and robust the experience base from which a country can draw, the more likely that it will be able to implement an appropriate, optimized, and system-wide approach.

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

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.

Equilibrium pricing in electricity markets with wind power

Science.gov (United States)

Rubin, Ofir David

Estimates from the World Wind Energy Association assert that world total wind power installed capacity climbed from 18 Gigawatt (GW) to 152 GW from 2000 to 2009. Moreover, according to their predictions, by the end of 2010 global wind power capacity will reach 190 GW. Since electricity is a unique commodity, this remarkable expansion brings forward several key economic questions regarding the integration of significant amount of wind power capacity into deregulated electricity markets. The overall dissertation objective is to develop a comprehensive theoretical framework that enables the modeling of the performance and outcome of wind-integrated electricity markets. This is relevant because the state of knowledge of modeling electricity markets is insufficient for the purpose of wind power considerations. First, there is a need to decide about a consistent representation of deregulated electricity markets. Surprisingly, the related body of literature does not agree on the very economic basics of modeling electricity markets. That is important since we need to capture the fundamentals of electricity markets before we introduce wind power to our study. For example, the structure of the electric industry is a key. If market power is present, the integration of wind power has large consequences on welfare distribution. Since wind power uncertainty changes the dynamics of information it also impacts the ability to manipulate market prices. This is because the quantity supplied by wind energy is not a decision variable. Second, the intermittent spatial nature of wind over a geographical region is important because the market value of wind power capacity is derived from its statistical properties. Once integrated into the market, the distribution of wind will impact the price of electricity produced from conventional sources of energy. Third, although wind power forecasting has improved in recent years, at the time of trading short-term electricity forwards, forecasting

Modeling and analysis of a decentralized electricity market: An integrated simulation/optimization approach

International Nuclear Information System (INIS)

Sarıca, Kemal; Kumbaroğlu, Gürkan; Or, Ilhan

2012-01-01

In this study, a model is developed to investigate the implications of an hourly day-ahead competitive power market on generator profits, electricity prices, availability and supply security. An integrated simulation/optimization approach is employed integrating a multi-agent simulation model with two alternative optimization models. The simulation model represents interactions between power generator, system operator, power user and power transmitter agents while the network flow optimization model oversees and optimizes the electricity flows, dispatches generators based on two alternative approaches used in the modeling of the underlying transmission network: a linear minimum cost network flow model and a non-linear alternating current optimal power flow model. Supply, demand, transmission, capacity and other technological constraints are thereby enforced. The transmission network, on which the scenario analyses are carried out, includes 30 bus, 41 lines, 9 generators, and 21 power users. The scenarios examined in the analysis cover various settings of transmission line capacities/fees, and hourly learning algorithms. Results provide insight into key behavioral and structural aspects of a decentralized electricity market under network constraints and reveal the importance of using an AC network instead of a simplified linear network flow approach. -- Highlights: ► An agent-based simulation model with an AC transmission environment with a day-ahead market. ► Physical network parameters have dramatic effects over price levels and stability. ► Due to AC nature of transmission network, adaptive agents have more local market power than minimal cost network flow. ► Behavior of the generators has significant effect over market price formation, as pointed out by bidding strategies. ► Transmission line capacity and fee policies are found to be very effective in price formation in the market.

Integration of wind energy in the Dutch electricity system in the context of the Northwestern European market for electricity. Final report

International Nuclear Information System (INIS)

Benz, E.; Hewicker, C.; Moldovan, N.; Stienstra, G.; Van der Veen, W.

2010-04-01

A study was conducted of the integration of large volumes of wind energy in the Dutch electricity system in the context of a Northwest European electricity market for the year 2020. This study contributes to answering the questions that are at the centre of the project 'Fuel mix'. The following aspects are addressed: the capacity to combine large volumes of wind energy in the Dutch electricity system with the use of CHP; the impact of electricity costs; the influence on CO2 emissions and fuel use; the correlation between the electricity production of CHP units; wind parks and coal-fired plants. In this study the Dutch electricity system is simulated in connection with the framework of the regional electricity market in Northwest Europe for the year 2020. The conducted simulations are based on perfect competition with the marginal cost price of the production units as offer price in the electricity market. To this end the chronological production simulation model (PLEXOS) was used, which takes into account the dynamic operational management and limitations of the electricity plants and the transmission grid. [nl

The integrated North American electricity market : Enhancing opportunities for cross border trading and environmental performance

International Nuclear Information System (INIS)

Egan, T.

2003-03-01

The stability of the North American electricity industry has always been recognized, in both Canada and the United States. However, this sector is facing uncertainty mainly due to lack of clarity concerning market rules, environmental challenges, and the very poor investment climate. The principal thesis that was developed for this paper used those three factors as context and justification. The thesis is as follows: the evolving North American market is more and more regionally integrated, and that continued and growing regional integration will lessen uncertainty. All problems cannot be solved simply through increased regional integration, but it represents a step in the right direction in that it leads to greater efficiency, increased reliability, more predictable regulation and policy, lower costs and greater environmental benefits. The result is increased investor confidence and reduced uncertainty in the marketplace. To assist in the strengthening of this integration, the Canadian Electricity Association made seven recommendations. They were: (1) increased focus on harmonizing market rules and increased participation in the Regional Transmission Organizations, (2) development of North American strategy for the management of greenhouse gas emissions resulting from electricity generation, (3) identification of oportunites to further harmonize management of other air emissions, (4) creation of consistent methodology for the measurement of environmental performance, (5) enhancement of cross-border and interprovincial transmission transfer capability, (6) coordination of critical infrastructure protection, and (7) support of self-governing international organization for the development and enforcement of mandatory reliability standards for the evolving electricity industry. 5 figs

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?

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)

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

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.

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

Market integration of wind power in electricity system balancing

DEFF Research Database (Denmark)

Sorknæs, Peter; Andersen, Anders N.; Tang, Jens

2013-01-01

In most countries markets for electricity are divided into wholesale markets on which electricity is traded before the operation hour, and real-time balancing markets to handle the deviations from the wholesale trading. So far, wind power has been sold only on the wholesale market and has been...... known to increase the need for balancing. This article analyses whether wind turbines in the future should participate in the balancing markets and thereby play a proactive role. The analysis is based on a real-life test of proactive participation of a wind farm in West Denmark. It is found...... that the wind farm is able to play a proactive role regarding downward regulation and thereby increase profits....

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

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)

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

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

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

DEFF Research Database (Denmark)

Santos, Gabriel; Pinto, Tiago; Morais, Hugo

2015-01-01

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

An Integrated Design approach to Power Systems: from Power Flows to Electricity Markets

Science.gov (United States)

Bose, Subhonmesh

Power system is at the brink of change. Engineering needs, economic forces and environmental factors are the main drivers of this change. The vision is to build a smart electrical grid and a smarter market mechanism around it to fulfill mandates on clean energy. Looking at engineering and economic issues in isolation is no longer an option today; it needs an integrated design approach. In this thesis, I shall revisit some of the classical questions on the engineering operation of power systems that deals with the nonconvexity of power flow equations. Then I shall explore some issues of the interaction of these power flow equations on the electricity markets to address the fundamental issue of market power in a deregulated market environment. Finally, motivated by the emergence of new storage technologies, I present an interesting result on the investment decision problem of placing storage over a power network. The goal of this study is to demonstrate that modern optimization and game theory can provide unique insights into this complex system. Some of the ideas carry over to applications beyond power systems.

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)

Electrifying integration Electricity production and the South East Europe regional energy market

International Nuclear Information System (INIS)

Hooper, Elizabeth; Medvedev, Andrei

2009-01-01

The paper provides an overview of the generation of electricity in 10 countries in South East Europe during 1995-2004. Using the latest available statistics, we explore the potential of the nascent integration of the electricity markets in South East Europe. We conduct a cross-country analysis of electricity production based on different types of fuel used. The region has a low level of gasification combined with few nuclear power generation facilities, while some countries heavily rely on hydro electric generation. Differences in countries' resource endowment and the possibility of intertemporal substitution between electricity generated from various fuels could stimulate a regional trade in electricity. As an alternative to nationally independent energy policy, regional trade could displace a proportion of the substantial investment in generation facilities required to avert serious supply shortages. Finally, we consider the environmental impact of electricity generation, and identify some of the key trade-offs between different policy objectives. (author)

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

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.

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

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.

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

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....

Integration and shock transmissions across European electricity forward markets

International Nuclear Information System (INIS)

Bunn, Derek W.; Gianfreda, Angelica

2010-01-01

New results are presented relating to the integration of the French, German, British, Dutch and Spanish power markets at day-ahead, week-ahead, one month-ahead and two month-ahead lead times. Overall, there is evidence of market integration, increasing over time, despite an underlying inefficiency in each market with respect to the forward and spot price convergence. The spatial analysis, on a financial dimension, is undertaken using causality tests, cointegration and impulse-response techniques, for both price levels and volatilities. In general we find less influence of the size and proximity of neighbouring markets than other studies, more integration at baseload than peak, and, surprisingly, less integration in forwards than spot prices. (author)

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

Energy market integration in South America

International Nuclear Information System (INIS)

Hammons, T.J.; Franco, N. de; Sbertoli, L.V.; Khelil, C.; Rudnick, H.; Clerici, A.; Longhi, A.

1997-01-01

This article is a summary of presentations made during the 1997 Winter Meeting panel session on Power and Natural Gas in Latin America: Towards an Integrated Market. Reregulation and demand for energy resources to support economic growth are driving international natural gas and electricity exchange initiatives. Panelists focused on the gas and electric power industry in Latin America in terms of the: transport of gas or transmission of electricity; energy market integration in the southern cone of South America; and issues on gas use for electricity generation in South America countries. Countries such as Argentina, Bolivia, and Peru will export natural gas to Brazil, Uruguay, Paraguay and Chile, an the energy matrices of these countries will change

Large-scale integration of renewable energy into international electricity markets

DEFF Research Database (Denmark)

Lund, Henrik

2004-01-01

has lead to excess electricity production and thus low prices on the Nord Pool electricity market. This paper describes how such problems can be avoided by the introduction of flexible energy systems including changes in the regulation of power plants and investments in heat pumps and heat storage...... it possible for the system to secure a balance between supply and demand. At the same time most European electricity systems are in the process of being transformed into competitive electricity markets. Already today, the annual share of wind power in the western part of Denmark is nearly 20 percent, which...

Marketing Integration for the Implementation of Territorial and Sectoral Approach to the Management of Electricity Development

OpenAIRE

Ivan A. Unshchikov; Rashida T. Unshchikova

2017-01-01

This article contains a proposal for a new approach to management of development of electric power in the multi-level governance system. To improve the effectiveness of the multi-level governance is offered by the wide use of marketing. Tools of investment marketing can be used to match demand and supply, using all levels of management. To do this, the subjects at every level of government carried out an identical procedure horizontal integration of sectoral and territorial marketing. Isolate...

Integrating Variable Renewable Energy in Electric Power Markets: Best Practices from International Experience, Summary for Policymakers

Energy Technology Data Exchange (ETDEWEB)

Cochran, J.; Bird, L.; Heeter, J.; Arent, D. A.

2012-04-01

Many countries -- reflecting very different geographies, markets, and power systems -- are successfully managing high levels of variable renewable energy on the electric grid, including that from wind and solar energy. This document summarizes policy best practices that energy ministers and other stakeholders can pursue to ensure that electricity markets and power systems can effectively coevolve with increasing penetrations of variable renewable energy. There is no one-size-fits-all approach; each country studied has crafted its own combination of policies, market designs, and system operations to achieve the system reliability and flexibility needed to successfully integrate renewables. Notwithstanding this diversity, the approaches taken by the countries studied all coalesce around five strategic areas: lead public engagement, particularly for new transmission; coordinate and integrate planning; develop rules for market evolution that enable system flexibility; expand access to diverse resources and geographic footprint of operations; and improve system operations. This study also emphatically underscores the value of countries sharing their experiences. The more diverse and robust the experience base from which a country can draw, the more likely that it will be able to implement an appropriate, optimized, and system-wide approach.

Integrating Variable Renewable Energy in Electric Power Markets. Best Practices from International Experience, Summary for Policymakers

Energy Technology Data Exchange (ETDEWEB)

Cochran, Jaquelin [National Renewable Energy Lab. (NREL), Golden, CO (United States); Bird, Lori [National Renewable Energy Lab. (NREL), Golden, CO (United States); Heeter, Jenny [National Renewable Energy Lab. (NREL), Golden, CO (United States); Arent, Douglas J. [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2012-04-30

Many countries - reflecting very different geographies, markets, and power systems - are successfully managing high levels of variable renewable energy on the electric grid, including that from wind and solar energy. This document summarizes policy best practices that energy ministers and other stakeholders can pursue to ensure that electricity markets and power systems can effectively coevolve with increasing penetrations of variable renewable energy. There is no one-size-fits-all approach; each country studied has crafted its own combination of policies, market designs, and system operations to achieve the system reliability and flexibility needed to successfully integrate renewables. Notwithstanding this diversity, the approaches taken by the countries studied all coalesce around five strategic areas: lead public engagement, particularly for new transmission; coordinate and integrate planning; develop rules for market evolution that enable system flexibility; expand access to diverse resources and geographic footprint of operations; and improve system operations. This study also emphatically underscores the value of countries sharing their experiences. The more diverse and robust the experience base from which a country can draw, the more likely that it will be able to implement an appropriate, optimized, and system-wide approach.

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

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.

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

Restructuring Electricity Markets when Demand is Uncertain

DEFF Research Database (Denmark)

Boom, Anette; Buehler, Stefan

2006-01-01

We examine the effects of reorganizing electricity markets on capacity investments, retail prices and welfare when demand is uncertain. We study the following market configurations: (i) integrated monopoly, (ii) integrated duopoly with wholesale trade, and (iii) separated duopoly with wholesale...... trade. Assuming that wholesale prices can react to changes in retail prices (but not vice versa), we find that generators install sufficient capacity to serve retail demand in each market configuration, thus avoiding blackouts. Furthermore, aggregate capacity levels and retail prices...

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.

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

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.

Electricity Markets Ontology to Support MASCEM's Simulations

DEFF Research Database (Denmark)

Santos, Gabriel; Pinto, Tiago; Vale, Zita

2016-01-01

the several issues related to these systems, including the involved players that act in this domain. To take better advantage of these systems, their integration is mandatory. The main contribution of this paper is the development of the Electricity Markets Ontology, which integrates the essential concepts...... necessary to interpret all the available information related to electricity markets, while enabling an easier cooperation and adequate communication between related systems. Additionally, the concepts and rules defined by this ontology can be extended and complemented according to the needs of other......Power systems worldwide are complex and challenging environments. The increasing necessity for an adequate integration of renewable energy sources is resulting in a rising complexity in power systems operation. Multi-agent based simulation platforms have proven to be a good option to study...

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)

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)

Electrical energy market management in deregulated power system

International Nuclear Information System (INIS)

Abady, A. F.; Niknam, T.

2003-01-01

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

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...

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

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)

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.

Management of electricity markets in European Union

International Nuclear Information System (INIS)

Zamfir, A.; Florescu, M.S.

2007-01-01

The challenges facing energy markets in Europe were discussed with particular reference to the need to integrate and interconnect national energy markets. The Romanian power market evolution since 2000 was also analyzed, taking into account the fact that the strategic objective of the Romanian Government is to assume the role of Regional Exchange in the South-East European region. A common approach to energy is needed to enable the European Union (EU) to compete in global markets, to improve sustainability in the EU and to secure energy supply. An overall framework is needed in order to achieve these objectives. This paper presented the general measures needed to complete the internal gas and electricity markets in Europe. It also proposed measures to ensure that the EU's internal energy market guarantees security of supply and solidarity between Member States. The guiding principles that an approach to information management and market transparency should be based on were described. The authors suggested that an integrated and competitive electricity and gas markets should be established to promote efficient energy services and diversify the energy mix. The measures needed in order to achieve the goal of a genuine single market at EU level were described along with the actions needed to stimulate investments in infrastructure and generation capacity. Measures to prevent or manage energy supply crises were also proposed. 4 refs., 1 tab

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

How to Organize Electricity Savings in a Liberalized Electricity Market

DEFF Research Database (Denmark)

Nørgaard, Jørgen

1998-01-01

The basic idea of Integrated Ressource Planning is described and it is demonstrated how this is in conflict with the sub-optimizing necessary in a liberalized market. Afterwards are outlined how the measuring of savings energy consumption constitutes a fundamental problem. Finally are dicussed...... the future actors in the electricity sector and their roles in implementing electricity savings, followed by some proposals for an energy policy....

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

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)

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)

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

Market structure and the stability and volatility of electricity prices

International Nuclear Information System (INIS)

Bask, Mikael; Widerberg, Anna

2009-01-01

By using a novel approach in this paper, (λ,σ 2 )-analysis, we have found that electricity prices most of the time have increased in stability and decreased in volatility when the Nordic power market has expanded and the degree of competition has increased. That electricity prices at Nord Pool have been generated by a stochastic dynamic system that most often has become more stable during the step-wise integration of the Nordic power market means that this market is less sensitive to shocks after the integration process than it was before this process. This is good news

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)

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)

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...

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...

Electricity market design for the prosumer era

Science.gov (United States)

Parag, Yael; Sovacool, Benjamin K.

2016-04-01

Prosumers are agents that both consume and produce energy. With the growth in small and medium-sized agents using solar photovoltaic panels, smart meters, vehicle-to-grid electric automobiles, home batteries and other ‘smart’ devices, prosuming offers the potential for consumers and vehicle owners to re-evaluate their energy practices. As the number of prosumers increases, the electric utility sector of today is likely to undergo significant changes over the coming decades, offering possibilities for greening of the system, but also bringing many unknowns and risks that need to be identified and managed. To develop strategies for the future, policymakers and planners need knowledge of how prosumers could be integrated effectively and efficiently into competitive electricity markets. Here we identify and discuss three promising potential prosumer markets related to prosumer grid integration, peer-to-peer models and prosumer community groups. We also caution against optimism by laying out a series of caveats and complexities.

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.

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

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)

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

Research document no. 24. The integration of european electric markets: from the national markets juxtaposition to the establishment of a regional market; Cahier de recherche no. 24. L'integration des marches electriques europeens: de la juxtaposition de marches nationaux a l'etablissement d'un marche regional

Energy Technology Data Exchange (ETDEWEB)

Finon, D

2000-11-01

After the transcription of the electricity directive in national legislations, the European electricity market appears to be a vast set of juxtaposed markets which are weakly connected at the level of their wholesale contracts compartment. Referring to the technological peculiarities of electricity as a commodity, the paper identifies the direct conditions of regional integration of the electricity markets, those which would favour cross-border trade and allow to be near the normal functioning of a regional commodity market. The infrastructure network dependence and the need of a stringent technical coordination necessitate to unify the operation of the different systems and the rules of access, or at the least to come near this unification by strong coordination. A second major condition, which is not fully debated, is the increasing connexion of short-term markets, via daily physical trade and emergence of a European financial market, which could trade various standardised contracts referring to a single hourly spot price, or to prices in various delivery points. To reach such an integration, two paths are possible: either concentration into one single organised power exchange as the Nordic pool, or rules harmonization of the various power exchanges which would be a minimal requirement to allow arbitrations between them. (author)

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

Integration of liberalised energy market

International Nuclear Information System (INIS)

Klinge Jacobsen, H.; Fristrup, P.; Munksgaard, J.; Pade, L.L.; Henriksen, T.C.

2004-03-01

The markets for electricity, natural gas and district heating are inter-linked both with respect to the energy flows and with respect to ownership of supply sources and infrastructure. The extent and the possible consequences of these linkages are examined in this report. The options for public interventions in these markets are analysed to compare instruments with respect to their ability to provide the necessary incentives for an efficient functioning of the liberalised markets. Aspects of retail markets with households facing multi-product distribution companies and aspects of the production of combined heat and power based on natural gas has been covered. This project identifies some important aspects related to final consumers and the interaction of markets with different types of regulation and scope for liberalisation. From a Danish perspective the district heat market and the dependence on market conditions for natural gas is a specific concern. Consumer concerns also relate to the creation of multi-product energy distribution companies that are privately owned and possibly controlled by foreign interests. Such companies might use bundled sales of energy products to extent their dominant position in one market e.g. a regulated heat market to a market with considerable competition (electricity). Bundled sales would not necessarily result in a loss for the consumer due to economies of scope in supplying energy products. However, the regulatory authorities responsible for district heat prices will have a more complicated job in surveying the bundled price setting. Integration of activities within natural gas distribution and CHP production has been analysed with respect to incentives and welfare implications. Results of the project point to critical market conditions and identify areas of concern for regulatory policies. The analysis shows that there is a large welfare loss associated with having monopolies in both natural gas supplies and the CHP production

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.

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.

Misconceptions of Electric Propulsion Aircraft and Their Emergent Aviation Markets

Science.gov (United States)

Moore, Mark D.; Fredericks, Bill

2014-01-01

Over the past several years there have been aircraft conceptual design and system studies that have reached conflicting conclusions relating to the feasibility of full and hybrid electric aircraft. Some studies and propulsion discipline experts have claimed that battery technologies will need to improve by 10 to 20 times before electric aircraft can effectively compete with reciprocating or turbine engines. However, such studies have approached comparative assessments without understanding the compelling differences that electric propulsion offers, how these technologies will fundamentally alter the way propulsion integration is approached, or how these new technologies can not only compete but far exceed existing propulsion solutions in many ways at battery specific energy densities of only 400 watt hours per kilogram. Electric propulsion characteristics offer the opportunity to achieve 4 to 8 time improvements in energy costs with dramatically lower total operating costs, while dramatically improving efficiency, community noise, propulsion system reliability and safety through redundancy, as well as life cycle Green House Gas emissions. Integration of electric propulsion will involve far greater degrees of distribution than existing propulsion solutions due to their compact and scale-free nature to achieve multi-disciplinary coupling and synergistic integration with the aerodynamics, highlift system, acoustics, vehicle control, balance, and aeroelasticity. Appropriate metrics of comparison and differences in analysis/design tools are discussed while comparing electric propulsion to other disruptive technologies. For several initial applications, battery energy density is already sufficient for competitive products, and for many additional markets energy densities will likely be adequate within the next 7 years for vibrant introduction. Market evolution and early adopter markets are discussed, along with the investment areas that will fill technology gaps and

International energy technology collaboration: wind power integration into electricity systems

International Nuclear Information System (INIS)

Justus, D.

2006-01-01

A rapid growth of wind power since the 1990s has led to notable market shares in some electricity markets. This growth is concentrated in a few countries with effective Research, Development and Demonstration (RD and D) programmes and with policies that support its diffusion into the market place. The speed and depth of its penetration in these electricity markets have amplified the need to address grid integration concerns, so as not to impede the further penetration of wind power. Research on technologies, tools and practices for integrating large amounts of wind power into electricity supply systems is attempting to respond to this need. In recent years, existing international collaborative research efforts have expanded their focus to include grid integration of wind power and new consortia have been formed to pool knowledge and resources. Effective results benefit a few countries that already have a significant amount of wind in their electricity supply fuel mix, as well as to the potential large markets worldwide. This paper focuses on the challenge of bringing significant amounts of intermittent generating sources into grids dominated by large central generating units. It provides a brief overview of the growth of wind power, mainly since 1990, the technical and operational issues related to integration and selected collaborative programmes underway to address grid integration concerns. (author)

Integrating wind power using intelligent electric water heating

International Nuclear Information System (INIS)

Fitzgerald, Niall; Foley, Aoife M.; McKeogh, Eamon

2012-01-01

Dwindling fossil fuel resources and pressures to reduce greenhouse gas emissions will result in a more diverse range of generation portfolios for future electricity systems. Irrespective of the portfolio mix the overarching requirement for all electricity suppliers and system operators is to instantaneously meet demand, to operate to standards and reduce greenhouse gas emissions. Therefore all electricity market participants will ultimately need to use a variety of tools to balance the power system. Thus the role of demand side management with energy storage will be paramount to integrate future diverse generation portfolios. Electric water heating has been studied previously, particularly at the domestic level to provide load control, peak shave and to benefit end-users financially with lower bills, particularly in vertically integrated monopolies. In this paper a number of continuous direct load control demand response based electric water heating algorithms are modelled to test the effectiveness of wholesale electricity market signals to study the system benefits. The results are compared and contrasted to determine which control algorithm showed the best potential for energy savings, system marginal price savings and wind integration.

Optimal charging of electric drive vehicles in a market environment

DEFF Research Database (Denmark)

Kristoffersen, Trine Krogh; Capion, Karsten Emil; Meibom, Peter

2011-01-01

With a potential to facilitate the integration of renewable energy into the electricity system, electric drive vehicles may offer a considerable flexibility by allowing for charging and discharging when desired. This paper takes the perspective of an aggregator that manages the electricity market...... participation of a vehicle fleet and presents a framework for optimizing charging and discharging of the electric drive vehicles, given the driving patterns of the fleet and the variations in market prices of electricity. When the aggregator is a price-taker the optimization can be stated in terms of linear...... programming whereas a quadratic programming formulation is required when he/she has market power. A Danish case study illustrates the construction of representative driving patterns through clustering of survey data from Western Denmark and the prediction of electricity price variations through regression...

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

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

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

Competitive Electricity Market Regulation in the United States: A Primer

Energy Technology Data Exchange (ETDEWEB)

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

2016-12-01

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

Integration project of regional markets in Europe (European directive)

International Nuclear Information System (INIS)

Gonzalez Fernandez-Castaneda, J. J.

2010-01-01

The article presents the current situation of the Day-Ahead electricity markets in the different countries and Regions along West Europe. It describes the different possibilities applied to congestion management in the borders between countries and price areas, and the options employed to couple Day-ahead markets to form regional markets in Europe. Finally, it presents the initiative to Price couple Regional markets (PCR) that is being developed by Nord pool spot, EPEX Spot and OMEL with the objective to advance towards the integration of the markets that they operate in the internal Electricity Market. (Author)

Integral or integrated marketing

Directory of Open Access Journals (Sweden)

Davčik Nebojša

2006-01-01

Full Text Available Marketing theorists and experts try to develop business efficient organization and to get marketing performance at higher, business integrated level since its earliest beginnings. The core issue in this paperwork is the dialectic and practical approach dilemma should we develop integrated or integral marketing approach in the organization. The presented company cases as well as dialectic and functional explanations of this dilemma clearly shows that integrated marketing is narrower approach than integral marketing if we take as focal point new, unique and completed entity. In the integration the essence is in getting different parts together, which do not have to make necessary the new entity. The key elements in the definition of the integral marketing are necessity and holistic, e.g. necessity to develop new, holistic entity.

The draft of the new electricity market law at a glance

International Nuclear Information System (INIS)

Voss, Jan Ole; Kirschnick, Stephan

2016-01-01

The conclusion of the new electricity market law is: ''The market will judge it''. A refined market where the renewable energies are increasingly integrated, shall guarantee reasonable prices, security of supply and environmental protection. Whether this can be achieved in reality, is highly questionable. This would require that the overcapacity of the German electricity market confirmed in several reports and the wholesale price for electricity recovers the long term. Only then can it be assumed that investment incentives arise in the construction of modern and efficient power generation plants. Such a ''market-faithful'' system is also absolutely dependent on the behavior of neighboring European countries. Only when these go along the path and affect the price and capacity development not regulatory, the completion of a functioning, liberalized EU internal market for electricity can succeed. [de

Integrated resource planning in Danish electricity supply

International Nuclear Information System (INIS)

1994-01-01

Integrated Resource Planning in Danish Electricity Supply is a development project run by a cooperation of Danish electric power companies. It takes environmental issues, such as energy conservation, into consideration in addition to the European Union's proposal for a directive on the introduction of competition within the common energy market. The concept of integrated resource planning is described as a tool that can be used for a total cost minimization of the activities on the supply side and the demand side, this concept is further elucidated. It is explained that there must be an economic balance between the efforts on both sides and that this will ensure a total cost minimization. Preconditions, related for example to socio-economics, and procedures (step-by-step planning), functional barriers, a definition of roles and international influence and dialogue are also discussed. Satisfaction is expressed for this method of integrated resource planning, yet uncertainty as to the future structure of the free electricity market implies a cautious implementation. (AB)

Marketing Integration for the Implementation of Territorial and Sectoral Approach to the Management of Electricity Development

Directory of Open Access Journals (Sweden)

Ivan A. Unshchikov

2017-06-01

Full Text Available This article contains a proposal for a new approach to management of development of electric power in the multi-level governance system. To improve the effectiveness of the multi-level governance is offered by the wide use of marketing. Tools of investment marketing can be used to match demand and supply, using all levels of management. To do this, the subjects at every level of government carried out an identical procedure horizontal integration of sectoral and territorial marketing. Isolated, and then analyzed and evaluated by territorial competitive position and industry competitive position. Then, based on analysis and evaluation of produced competitive position produced directions of development and formed investment proposals. After conducted custom PESTanalysis, which is proposed to use as a tool for analysis and evaluation of investment demand subjects of external control levels and, in fact, is a vertically integrated marketing in the multi-level governance system. With this approach, each actively involved in the mechanism of the subject of management has the ability to efficiently allocate "through the corridors" of investment development, to select appropriate investment proposals. Goal setting, recording and evaluation of the competitive position in the performance of the above procedures can effectively compare and coordinate investment demand with investment proposals in the complex structure of multi-level governance. The use of horizontal and vertical integration of marketing in this system greatly increases the efficiency of management by taking into account the scale and evaluation of internal and external market factors.

Development of a model for integrated simulation of the European transmission networks and electricity markets

International Nuclear Information System (INIS)

Rathke, Christian

2013-01-01

The liberalisation of electricity markets and the increase of renewable energy generation actually causes dramatic changes for the whole European power industry. The transmission system operators in particular have to meet the challenge to ensure a stable and reliable system operation in the future. Significant changes in power generation will require a substantial extension to current inadequate original transmission grids to handle increased wide area power flows. This is the only way to avoid overloading the grid and to reduce the herefrom resulting limitations for the Pan-European cross-border trade of electricity. This work describes in detail the development of a Pan-European integrated grid and an electricity market simulation tool. For this purpose an overview about the today's structure of the European electricity industry is given initially. Afterwards the configuration of the transmission grid, the used equipment and different methods for the load flow and short circuit calculation are explained. Furthermore models for the calculation of local loads and the power plant dispatch are presented in the following chapters. Following on from this a detailed model of the European electricity industry is developed and the main functions are described by means of some exemplary simulations. The simulation tool developed in this work enables the user to calculate realistic power plant schedules and the consequent resulting physical effects on the European transmission grid. It combines a time series based simulation of the electricity market with a detailed model of the transmission grid. The highly detailing of the model offers the feasibility to execute a complete AC load flow calculation using the Newton Raphson algorithm.Therefore it is possible to identify the active as well as the reactive power flows in the grid. The results of the power flow calculation are the basis for further investigations (e. g. the short circuit calculation) and to decide on

Use of derivative instruments to integrate renewable energies into the electricity market

International Nuclear Information System (INIS)

Hartmann, Kilian; Nelles, Michael; Candra, Dodiek Ika

2017-01-01

The implementation of renewable energies to the electricity market is inefficient and expensive with current measures. Further these measures are prejudicial for the existing energy-only-market. The combination of fluctuating and controllable renewable powers in virtual power plants enables the marketing of this power as a derivate on the future market. Thus would relieve the spot market and stabilize pricing on both markets. Subsequently the renewable energy obligation will reduce and renewable energies could be marketed as secured power.

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

The Nordic electricity market and how it can be improved

Energy Technology Data Exchange (ETDEWEB)

Togeby, M.

2012-05-15

The Nordic electricity market is acknowledged worldwide as being successful. However, the market is not perfect. In this report we emphasise the consumer perspective of the electricity market - it seems clear that further development is required here. Challenges to the Nordic electricity market include: 1) Efficient involvement of the consumer in the market and consumer trust in the market. 2) Efficient integration of large scale renewable energy - e.g. 15,000 MW wind power in 2020. 3) Limited competition in peak load situations, in situations with little hydro availability and in situations with congestions in the transmission system. This analysis recommends three areas as focus points for future market development: 4) Ways to radically increase the volume of demand response. 5) Ways to improve the system of default suppliers. 6) Ways to improve the regulation of distribution companies. The issues related to these three focus points differ from country to country, but the overarching issues are relevant in all market areas. (Author)

The electricity market 2002

Energy Technology Data Exchange (ETDEWEB)

NONE

2002-10-01

charges and taxes. The price of electricity dropped between 1997 and 2000, but began rising again to all electricity customers during 2000 and 2001. During the same period, the network charges remained largely unchanged, while the tax on electricity increased substantially. This led to an increase in the total cost to domestic customers, whereas the cost to industrial customers, who are exempt from taxes, is lower. The reform has enabled customers to choose freely the supplier from whom they want to buy their electricity. An opinion poll shows that most customers know that they can choose their supplier, and 37 % have acted on this by changing to a different supplier or negotiating their electricity price. The market concentration has increased in recent years since the dominating companies in Nordic countries have bought shares in competing companies on the Nordic market. The power companies and electricity trading companies are being developed towards bigger and more integrated energy companies, with operations in several countries. In recent years, the former surplus generation capacity in Sweden has been reduced. The oil-fired condensing power stations that were previously used in Sweden as reserve capacity have been decommissioned, and the first reactor in Barsebaeck was shut down. Svenska Kraftnaet, the Swedish grid utility, purchased a power reserve before the winter of 2000/2001 in order to strengthen the power balance during consumption peaks. During the autumn of 2001, the Government also entrusted Svenska Kraftnaet with the task of safe-guarding electricity generation capacity during very cold weather. This was to be done by purchasing reserve power capacity. The assignment resulted in additional power generation capacity consisting of previously decommissioned power generation plants and companies that were prepared to reduce their power consumption voluntarily. The procurement of reserve capacity is a temporary transitional measure. In the Government

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...

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.

Bi-directional causality in California's electricity and natural-gas markets

International Nuclear Information System (INIS)

Woo, Chi-Keung; Olson, Arne; Horowitz, Ira; Luk, Stephen

2006-01-01

The Granger instantaneous-causality test is applied to explore the potential causal relationships between wholesale electricity and natural-gas prices in California. The test shows these relationships to be bi-directional, and reveals California's electricity and natural-gas markets to be as inextricably intertwined as casual observation and theoretical considerations would suggest they ought to be. This meshing of markets exacerbated the effects of California's natural-gas crisis on the contemporaneous electricity crisis, while concurrently the electricity crisis may have contributed to the dysfunction in the national-gas market and helped to precipitate the natural-gas crisis. The finding supports an integrated approach, as opposed to a piecemeal approach, for formulating energy policy recommendations, not just in California but in the world at large

A comparison of electric vehicle integration projects

DEFF Research Database (Denmark)

Andersen, Peter Bach; Garcia-Valle, Rodrigo; Kempton, Willett

2012-01-01

.g. utilization of electric vehicles for ancillary services. To arrive at standardized solutions, it is helpful to analyze the market integration and utilization concepts, architectures and technologies used in a set of state-of-the art electric vehicle demonstration projects. The goal of this paper......It is widely agreed that an intelligent integration of electric vehicles can yield benefits for electric vehicle owner, power grid, and the society as a whole. Numerous electric vehicle utilization concepts have been investigated ranging from the simple e.g. delayed charging to the more advanced e...... is to highlight different approaches to electric vehicle integration in three such projects and describe the underlying technical components which should be harmonized to support interoperability and a broad set of utilization concepts. The projects investigated are the American University of Delaware's V2G...

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

Regionalism versus integration of the EU electricity market : An open debate from the comparative and prospective analysis of regulatory regimes in the central European countries

Energy Technology Data Exchange (ETDEWEB)

Engoian, Alda; Mouchart, Christel

2005-12-15

The failure of integration of 25 national energy markets into an unique one has been clearly expressed by the European Commission in its last benchmarking report. This working paper investigate the question of the more appropriate and realistic market design to limit perverse effects linked to the gaps between Western and Eastern European electricity markets. The paper consists in comparing electricity regulations per segment of the value chain in the CECs (Czech Republic, Hungary, Poland, Slovakia) characterized by industrial structures stemming from the socialism. Our regulatory approach and the example of South-East Europe support the idea of regionalism as an interim stage towards a final integrated European market. This regionalism based on the Standard Market Design concept, with flexible principles, and simultaneously combined to national reforms would seem to be a ''key of success''. (Author)

Regionalism versus integration of the EU electricity market : An open debate from the comparative and prospective analysis of regulatory regimes in the central European countries

International Nuclear Information System (INIS)

Engoian, Alda; Mouchart, Christel

2005-01-01

The failure of integration of 25 national energy markets into an unique one has been clearly expressed by the European Commission in its last benchmarking report. This working paper investigate the question of the more appropriate and realistic market design to limit perverse effects linked to the gaps between Western and Eastern European electricity markets. The paper consists in comparing electricity regulations per segment of the value chain in the CECs (Czech Republic, Hungary, Poland, Slovakia) characterized by industrial structures stemming from the socialism. Our regulatory approach and the example of South-East Europe support the idea of regionalism as an interim stage towards a final integrated European market. This regionalism based on the Standard Market Design concept, with flexible principles, and simultaneously combined to national reforms would seem to be a ''key of success''. (Author)

Differences in regulation and efficiency on the electricity market. A preliminary study in the Market Design program

International Nuclear Information System (INIS)

Bergendahl, Goeran; Lindblom, Ted; Olsson, Sven-Olof; Sandoff, Anders

2001-05-01

should be applied to solve this problem? A marginal cost based pricing may lead to substantial profits ('excess profits') for power companies that possess older hydro power plants. How likely are these producers to set electricity prices below marginal costs in order to prevent new actors from entering the market? Companies that have a jointly production of electricity and district heating may be tempted to subsidise the electricity business by utilising the (local monopoly) profits from the district heating. What measures can be taken to uphold an efficient electricity pricing based on marginal costs, while still allowing the companies to benefit from economies of scope? There are substantial economic benefits from horizontal as well as vertical integration. Is it possible to obtain these benefits in combination with efficient electricity pricing? After the deregulation of the electricity industry investments in production and transmission facilities are associated with different risks. How does this risk difference influence the cost of capital and the willingness to invest in new capacity? How are the risks managed in practice? A few large actors dominate most electricity markets. To what extent do they exercise their market power? Is it possible to analyse their conduct in terms of game theory? In the second part of this preliminary study the historic review shows that the development of electricity markets may be separated into several stages, where a common denominator is a transition from a highly regulated environment into an open and free market. However, to a certain extent this transition has been carried through differently in each market. This raises further questions and a need for conducting comparative studies concerning the market conditions in different countries and time periods: What cultural differences exist between electricity companies in different countries? Does it matter whether the companies are private firms, municipal utilities or state

System and market integration of wind power in Denmark

DEFF Research Database (Denmark)

Lund, Henrik; Hvelplund, Frede; Alberg Østergaard, Poul

2013-01-01

Denmark has more than 10 years’ of experience with a wind share of approximately 20 per cent. During these 10 years, electricity markets have been subject to developments with a key focus on integrating wind power as well as trading electricity with neighbouring countries. This article introduces...... a methodology to analyse and understand the current market integration of wind power and concludes that the majority of Danish wind power in the period 2004e2008 was used to meet the domestic demand. Based on a physical analysis, at least 63 per cent of Danish wind power was used domestically in 2008....... To analyse the remaining 37 per cent, we must apply a market model to identify cause-effect relationships. The Danish case does not illustrate any upper limit for wind power integration, as also illustrated by Danish political targets to integrate 50 per cent by 2020. In recent years, Danish wind power has...

Basic Principles of Electrical Network Reliability Optimization in Liberalised Electricity Market

Science.gov (United States)

Oleinikova, I.; Krishans, Z.; Mutule, A.

2008-01-01

The authors propose to select long-term solutions to the reliability problems of electrical networks in the stage of development planning. The guide lines or basic principles of such optimization are: 1) its dynamical nature; 2) development sustainability; 3) integrated solution of the problems of network development and electricity supply reliability; 4) consideration of information uncertainty; 5) concurrent consideration of the network and generation development problems; 6) application of specialized information technologies; 7) definition of requirements for independent electricity producers. In the article, the major aspects of liberalized electricity market, its functions and tasks are reviewed, with emphasis placed on the optimization of electrical network development as a significant component of sustainable management of power systems.

A framework for analyzing the impact of data integrity/quality on electricity market operations

Science.gov (United States)

Choi, Dae Hyun

This dissertation examines the impact of data integrity/quality in the supervisory control and data acquisition (SCADA) system on real-time locational marginal price (LMP) in electricity market operations. Measurement noise and/or manipulated sensor errors in a SCADA system may mislead system operators about real-time conditions in a power system, which, in turn, may impact the price signals in real-time power markets. This dissertation serves as a first attempt to analytically investigate the impact of bad/malicious data on electric power market operations. In future power system operations, which will probably involve many more sensors, the impact of sensor data integrity/quality on grid operations will become increasingly important. The first part of this dissertation studies from a market participant's perspective a new class of malicious data attacks on state estimation, which subsequently influences the result of the newly emerging look-ahead dispatch models in the real-time power market. In comparison with prior work of cyber-attack on static dispatch where no inter-temporal ramping constraint is considered, we propose a novel attack strategy, named ramp-induced data (RID) attack, with which the attacker can manipulate the limits of ramp constraints of generators in look-ahead dispatch. It is demonstrated that the proposed attack can lead to financial profits via malicious capacity withholding of selected generators, while being undetected by the existing bad data detection algorithm embedded in today's state estimation software. In the second part, we investigate from a system operator's perspective the sensitivity of locational marginal price (LMP) with respect to data corruption-induced state estimation error in real-time power market. Two data corruption scenarios are considered, in which corrupted continuous data (e.g., the power injection/flow and voltage magnitude) falsify power flow estimate whereas corrupted discrete data (e.g., the on/off status of

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)

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.

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

Market power in the Nordic electricity wholesale market: A survey of the empirical evidence

International Nuclear Information System (INIS)

Fridolfsson, Sven-Olof; Tangeras, Thomas P.

2009-01-01

We review the recent empirical research assessing market power on the Nordic wholesale market for electricity, Nord Pool. The studies find no evidence of systematic exploitation of system level market power on Nord Pool. Local market power arising from transmission constraints seems to be more problematic in some price areas across the Nordic countries. Market power can manifest itself in a number of ways that have so far escaped empirical scrutiny. We discuss investment incentives, vertical integration and buyer power, as well as withholding of base-load (nuclear) capacity.

Electricity deregulation - impact on gas users and markets

International Nuclear Information System (INIS)

Koeppel, H.

1995-01-01

Various scenarios for the natural gas market as a function a electricity deregulation were predicted. One scenario was the formation of an integrated market where sellers would offer a broad spectrum of energy products. This diversification would expand into the retail sector across North America. The second effect of electricity deregulation was energy cost reduction. The consumers have already been experiencing this benefit of deregulation. Cost reduction has also stimulated competition among energy suppliers, and improved suppliers' response to consumers'demands. The eventual shake-out of energy suppliers was predicted. Smaller companies that could not survive the competition would give up the market to larger companies that understood and met the customers' needs. It was concluded that deregulation of the electricity industry would have an enormous impact on the natural gas industry and that there would be opportunities for gain among buyers and sellers

Predictability of Wave Energy and Electricity Markets

DEFF Research Database (Denmark)

Chozas, Julia Fernandez

2012-01-01

The articlw addresses an important challenge ahead the integration of the electricity generated by wave energy conversion technologies into the electric grid. Particularly, it looks into the role of wave energy within the day-ahead electricity market. For that the predictability of the theoretical...... power outputs of three wave energy technologies in the Danish North Sea are examined. The simultaneous and co-located forecast and buoy-measured wave parameters at Hanstholm, Denmark, during a non-consecutive autumn and winter 3-month period form the basis of the investigation. The objective...

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

Towards a single European electricity market. A structured approach to regulatory mode decision-making

International Nuclear Information System (INIS)

De Jong, H.M.

2009-01-01

This study focuses on the processes through which the rules and regulations that govern European electricity markets - and inherently, their integration process - are established. So far, European policy makers have largely followed a 'trial-and-error' approach to finding an appropriate regulatory mode (process) for dealing effectively with market integration issues. This unstructured approach to regulatory mode selection leads to several problems: - Today's trial-and-error strategy of shifting from one regulatory mode to another is time-consuming. - In the regulatory mode selection process, certain key principles of good governance are insufficiently considered. - European regulatory processes are experienced as vague, intransparent, and illegitimate by 'outside' stakeholders. This study develops a 'structured approach to regulatory mode decision-making' (STARMODE) based on the theory of decision modelling in policy management and a case study exploring three key market integration issues in the field of electricity markets: interconnector investment, congestion management and market transparency. The main objective is to present a systematic and comprehensive framework for analysing and improving regulatory mode decision-making in the context of the European Union, focusing on electricity market integration. The STARMODE approach is generally applicable to (and relevant for) European market integration issues in industries characterized by a natural monopoly and/or an essential service. The approach may also contribute to national regulatory mode decision-making and multi-state decision-making in other continents.

MASCEM: EPEX SPOT Day-Ahead market integration and simulation

DEFF Research Database (Denmark)

Santos, Gabriel; Fernandes, Ricardo; Pinto, Tiago

2015-01-01

. It is crucial to MASCEM to have the ability to simulate as many market models and player types as possible, thus enhancing the ability to recreate the electricity markets reality in its maximum possible extent. This paper presents the EPEX Spot Day-Ahead market integration in MASCEM. EPEX Spot SE's mission...

Integration of electricity markets in Europe. Relevant issues for Italy

International Nuclear Information System (INIS)

Creti, Anna; Fumagalli, Eileen; Fumagalli, Elena

2010-01-01

In this paper, we analyze the current trend towards a higher degree of market integration in Europe and identify those aspects that are particularly relevant for Italy. The Italian involvement in this process appears comparatively modest. A welfare analysis, which focuses specifically on the integration of the Italian market, will certainly be a useful support to any policy decision. We argue that, given the peculiarities of the Italian market design, a volume coupling solution could avoid, at the moment, the costs of what could be a significant harmonization effort and, in the end, it might constitute the best short-term strategy. This proposal should be adequately considered, taking into account the complexity of designing an efficient volume-only coordination procedure. (author)

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.

The design of tomorrow's European electricity market; Das europaeische Strommarktdesign der Zukunft

Energy Technology Data Exchange (ETDEWEB)

Kranner, Karl; Sharma, Stephan [Verbund AG, Wien (Austria). Geschaefststeuerung und Marketing

2013-01-15

In today's times of rising feed-in rates from renewable energy and competing market models, the need for an integrated European energy market is growing ever more urgent. The first phase of liberalisation of the European electricity markets was marked by the development of national sub-markets which differed in their degree of liberty. Due to network bottlenecks at the borders, substantial price differences were seen to arise between market regions, with the exception of those between Germany and Austria. This leads to the question as to how the integration of the internal European energy market can best be brought about. A six-point programme elaborated by Verbund AG banks on market mechanisms rather than regulation as a means of strengthening the electricity market.

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

International Nuclear Information System (INIS)

2005-05-01

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

Effects of further integration of distributed generation on the electricity market

NARCIS (Netherlands)

Frunt, J.; Kling, W.L.; Myrzik, J.M.A.; Nobel, Frank; Klaar, D.A.M.

2006-01-01

Environmental concern leads to legislation to stimulate the further integration of renewable energy in the Dutch electricity supply system. Distributed generation is suited for the integration of renewable energy sources. Furthermore it can be used to generate both heat and electricity in a more

The Nordic electricity market towards 2010

International Nuclear Information System (INIS)

Aune, Finn Roar; Johnsen, Tor Arnt

2001-01-01

This article opens by examining the development of the Nordic power market in the 1990s. It tries to establish that the power market is a complex one. The market conditions vary greatly from one region to another and over time, and there is varying degree of integration among the regional markets. Thus, analyses of policy and political measures must be based on a detailed computational tool. In the SAMRAM project ''Power trade and Transmission'', such a computational model has been established, Normod-T. The article describes the principle features of the model and uses it to study the development of the Nordic power market toward the year 2010. It further analyses the impact of building gas power plants in Norway and of establishing a new cable for transmission of electric power between Norway and Germany

Competitive electricity markets: One size should fit all

International Nuclear Information System (INIS)

Ruff, L.E.

1999-01-01

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

Competitive electricity markets: One size should fit all

Energy Technology Data Exchange (ETDEWEB)

Ruff, L.E.

1999-11-01

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

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

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

Independent Electricity Market Operator integration management participant technical reference manual

International Nuclear Information System (INIS)

1999-01-01

The document provides potential participants with the essential technical information to permit them to participate in the IMO-administered markets, and is not intended to be a complete technical reference manual for all issues within the realm of electricity production, distribution, or consumption. Written for the participants, it provides only that information which is relevant to the participant for interfacing with the IMO and participating in the market. Written as a generic guide, all the information contained within it may not be relevant to all the participants. The document's intent is to provide participants with a description of the various facilities and interfaces required by market participants to take part in the IMO-administered markets. The document supplements the market rules and provides installation, set-up, and configuration information for the various tools and facilities that will be required for market participation as a supplier, carrier/delivery (transmitter/distributor), generator, or consumer in the market. Aspects considered include: participant workstation specifications, dispatch workstation specification, message exchange, remote terminal unit specification, AGC operational RTU specification, real time network connection specification, telephone connection specification, revenue administration specification, funds administration specification, data catalogues, market information, power grid connection requirements, and appendices

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.

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.

Renewable energy and policy options in an integrated ASEAN electricity market: Quantitative assessments and policy implications

International Nuclear Information System (INIS)

Chang, Youngho; Li, Yanfei

2015-01-01

Energy market integration (EMI) in the ASEAN region is a promising solution to relieve the current immobilization of its renewable energy resources and would serve the fast increasing demand for electricity in the region. EMI could be further extended with coordinated policies in carbon pricing, renewable energy portfolio standards (RPS), and feed-in-tariffs (FIT) in the ASEAN countries. Using a linear dynamic programming model, this study quantitatively assesses the impacts of EMI and the above-mentioned policies on the development of renewable energy in the power generation sector of the region, and the carbon emissions reduction achievable with these policies. According to our results, EMI is expected to significantly promote the adoption of renewable energy. Along with EMI, FIT appears to be more cost-effective than RPS and is recommended for the ASEAN region, albeit political barriers for policy coordination among the countries might be a practical concern. In addition, an RPS of 30% electricity from renewable sources by 2030, which is considered politically a “low-hanging fruit”, would achieve moderate improvements in carbon emissions reductions and renewable energy development, while incurring negligible increases in the total cost of electricity. -- Highlights: •Energy market integration (EMI), carbon pricing, RPS, and FIT are examined for ASEAN. •EMI is a promising and feasible solution to promote renewable energy for ASEAN. •Along with EMI, FIT appears to be more cost-effective than RPS for ASEAN. •RPS of 30% by 2030 appears to be reasonable and feasible for ASEAN. •Coordinating FIT and RPS policies under EMI among ASEAN is advised

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.

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

The green electricity market model. Proposal for an optional, cost-neutral direct marketing model for supplying electricity customers; Das Gruenstrommarktmodell. Vorschlag fuer ein optionales und kostenneutrales Direktvermarktungsmodell zur Versorgung von Stromkunden

Energy Technology Data Exchange (ETDEWEB)

Heinemann, Ronald [NATURSTROM AG, Berlin (Germany)

2014-07-01

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.

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 market is hindered by a lack of proper design and sufficient transparency. 32 refs., 3 tabs., 4 figs

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)

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

Research and Application of Construction of Operation Integration for Smart Power Distribution and Consumption Based on “Integration of Marketing with Distribution”

Directory of Open Access Journals (Sweden)

Zhenbao Feng

2014-05-01

Full Text Available The “information integrated platform of marketing and distribution integration system” researched and developed by this article is an advanced application platform to concurrently design and develop the automation of marketing and power distribution through integration and analysis of existing data based on the data platform of Jiaozuo Power Supply Corporation. It uses data mining and data bus technology, uniform analysis of comprehensive marketing and distribution data. And it conducts a real time monitoring on power utilization information for marketing and early warning maintenance business of power distribution according to electric business model, which realizes an integration of marketing and distribution business, achieves the target of integrated operation of marketing and distribution, improves the operation level of business, reduces maintenance costs of distribution grid, increases electricity sales of distribution grid and provide reliable practical basis for operation and maintenance of Jiaozuo power marketing and distribution.

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

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

The electricity market 2002

International Nuclear Information System (INIS)

2002-01-01

taxes. The price of electricity dropped between 1997 and 2000, but began rising again to all electricity customers during 2000 and 2001. During the same period, the network charges remained largely unchanged, while the tax on electricity increased substantially. This led to an increase in the total cost to domestic customers, whereas the cost to industrial customers, who are exempt from taxes, is lower. The reform has enabled customers to choose freely the supplier from whom they want to buy their electricity. An opinion poll shows that most customers know that they can choose their supplier, and 37 % have acted on this by changing to a different supplier or negotiating their electricity price. The market concentration has increased in recent years since the dominating companies in Nordic countries have bought shares in competing companies on the Nordic market. The power companies and electricity trading companies are being developed towards bigger and more integrated energy companies, with operations in several countries. In recent years, the former surplus generation capacity in Sweden has been reduced. The oil-fired condensing power stations that were previously used in Sweden as reserve capacity have been decommissioned, and the first reactor in Barsebaeck was shut down. Svenska Kraftnaet, the Swedish grid utility, purchased a power reserve before the winter of 2000/2001 in order to strengthen the power balance during consumption peaks. During the autumn of 2001, the Government also entrusted Svenska Kraftnaet with the task of safe-guarding electricity generation capacity during very cold weather. This was to be done by purchasing reserve power capacity. The assignment resulted in additional power generation capacity consisting of previously decommissioned power generation plants and companies that were prepared to reduce their power consumption voluntarily. The procurement of reserve capacity is a temporary transitional measure. In the Government assignment

New approach in electricity network regulation: an issue on effective integration of distributed generation in electricity supply systems

International Nuclear Information System (INIS)

Scheepers, Martin J.J.; Wals, Adrian F.

2003-11-01

Technological developments and EU targets for penetration of renewable energy sources (RES) and greenhouse gas (GHG) reduction are decentralising the electricity infrastructure and services. Although, the liberalisation and internationalisation of the European electricity market has resulted in efforts to harmonise transmission pricing and regulation, hardly any initiative exists to consider the opening up and regulation of distribution networks to ensure effective participation of RES and distributed generation (DG) in the internal market. The SUSTELNET project has been created in order to close this policy gap. Its main objective is to develop regulatory roadmaps for the transition to an electricity market and network structure that creates a level playing field between centralised and decentralised generation and that facilitates the integration of RES, within the framework of the liberalisation of the EU electricity market. By analysing the technical, socio-economic and institutional dynamics of the European electricity system and markets, the project identifies the underlying patterns that provide the boundary conditions and levers for policy development to reach long term RES and GHG targets (2020-2030 time frame). This paper presents results of this analytical phase of the SUSTELNET project. Furthermore, preliminary results of the current work in progress are presented. Principles and criteria for a regulatory framework for sustainable electricity systems are discussed, as well as the development of medium to long-term transition strategies/roadmaps for network regulation and market transformation to facilitate the integration of RES and decentralised electricity generating systems.

Nordic market report 2009 : Development in the Nordic electricity market

Energy Technology Data Exchange (ETDEWEB)

2009-07-01

integration has started. Prerequisites for well-functioning retail markets are active customers who engage in the market. The share of customers switching electricity supplier differs considerably between the Nordic countries; from approx 2 per cent in Denmark to 8 per cent in Sweden. NordREG has undertaken the assignment of developing a number of statistical indicators to describe and assess the functioning and status of both the wholesale and retail markets. The work on the indicators is complex and still ongoing. NordREG intends to launch a public consultation in the beginning of 2010. (Author)

Nordic market report 2009. Development in the Nordic electricity market

Energy Technology Data Exchange (ETDEWEB)

2009-07-15

integration has started. Prerequisites for well-functioning retail markets are active customers who engage in the market. The share of customers switching electricity supplier differs considerably between the Nordic countries; from app. 2 per cent in Denmark to 8 per cent in Sweden. NordREG has undertaken the assignment of developing a number of statistical indicators to describe and assess the functioning and status of both the wholesale and retail markets. The work on the indicators is complex and still ongoing. NordREG intends to launch a public consultation in the beginning of 2010.

Network access charges, vertical integration, and property rights structure - experiences from the German electricity markets

International Nuclear Information System (INIS)

Growitsch, C.; Wein, T.

2005-01-01

After the deregulation of the German electricity markets in 1998, the German government opted for a regulatory regime called negotiated third party access, which would be subject to ex-post control by the federal cartel office. Network access charges for new competitors are based on contractual arrangements between energy producers and industrial consumers. As the electricity networks are incontestable natural monopolies, the local and regional network operators are able to set (monopolistic) charges at their own discretion, restricted only by the possible interference of the federal cartel office (Bundeskartellamt). In this paper we analyze if there is evidence for varying charging behaviour depending on the supplier's economic independence (structure of property rights) or its level of vertical integration. For this purpose, we hypothesise that incorporated and vertically integrated suppliers set different charges than independent utility companies. Multivariate estimations show a relation between network access charges and the network operator's economic independence as well as level of vertical integration: on the low voltage level for an estimated annual consumption of 1700 kW/h, vertically integrated firms set-in accordance with our hypothesis-significantly lower access charges than vertically separated suppliers, whereas incorporated network operators charge significantly higher charges compared to independent suppliers. These results could not have been confirmed for other consumptions or voltage levels. (author)

European wood pellet market integration - A study of the residential sector

International Nuclear Information System (INIS)

Olsson, Olle; Hillring, Bengt; Vinterbaeck, Johan

2011-01-01

The integration of European energy markets is a key goal of EU energy policy, and has also been the focal point of many scientific studies in recent years. International markets for coal, oil, natural gas and electricity have previously been investigated in order to determine the extent of the respective markets. This study enhances this field of research to bioenergy markets. Price series data and time series econometrics are used to determine whether residential sector wood pellet markets of Austria, Germany and Sweden are integrated. The results of the econometric tests show that the German and Austrian markets can be considered to be integrated, whereas the Swedish market is separate from the other two countries. Although increased internationalization of wood pellet markets is likely to contribute to European price convergence and market integration, this process is far from completed. (author)

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

Managing congestion and intermittent renewable generation in liberalized electricity markets

Energy Technology Data Exchange (ETDEWEB)

Kunz, Friedrich

2013-02-27

This dissertation focuses on selected aspects of network congestion arising in liberalized electricity markets and their management methods with a special weight placed on the integration of increased renewable generation in Europe and Germany. In a first step, the theoretical concepts of congestion management are introduced complemented by a review of current management regimes in selected countries. In the second step, the European approach of managing congestion on international as well as national transmission links is analyzed and the benefits of an integrated congestion management regime are quantified. It is concluded that benefits can be achieved by a closer cooperation of national transmission system operators (TSOs). Thirdly, the German congestion management regime is investigated and the impact of higher renewable generation up to 2020 on congestion management cost is determined. It is shown that a homogeneous and jointly development of generation and transmission infrastructure is a prerequisite for the application of congestion alleviation methods and once they diverge congestion management cost tend to increase substantially. Lastly, the impact of intermittent and uncertain wind generation on electricity markets is analyzed. A stochastic electricity market model is described, which replicates the daily subsequent clearing of reserve, day ahead, and intraday market typical for European countries, and numerical results are presented.

Model of the electric energy market in Poland. Assumptions, structure and operation principles

International Nuclear Information System (INIS)

Kulagowski, W.

1994-01-01

Present state of works on model of electric energy market in Poland with special consideration of bulk energy market is presented. The designed model based on progressive, evolutionary changes is so elastic, that when keeping general structure and fundamentals the particular solutions can be verified or corrected. The changes in the electric energy market are considered as an integral part of existing restructuring process of Polish electric energy sector. The rate of those changes and the mode of their introduction influence on introduction speed of the new solutions. (author). 14 refs, 4 figs

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.

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

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

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.

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.

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

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

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.

Integrated Cost Allocation of Transmission Usage under Electricity Markets

Directory of Open Access Journals (Sweden)

Hermagasantos Zein

2012-08-01

Full Text Available Cost allocation of transmission usage on the power networks is an important issue especially in the modern electricity market mechanism. In this context, all costs that have been embedded in the transmission, embedded cost, should be covered by the transmission users. This paper follows general methods, where generators are fullyresponsible to cover the embedded cost. It proposes a method to determine the cost allocation of transmission usage based on decomposition through the superposition techinique to determine power flow contributions from an integrated base case of the results of the power flow calculations of all transactions, bilateral and nonbilateral contracts. Mathematically, the applied formulations are illustrated clearly in this paper. The proposed method has been tested with 5-bus system and the results are much different compared to a few of the published methods. This is shown by the test results on the 5 bus system. The published methods produce total power flow contributions in each line is greater than the actual. And they earn total revenues approximately 11.6% greater than the embedded cost. While on the proposed method, the power flow contribu tions are equal to the actual and the revenues are equal to the embedded cost. It shows also that the proposed method gives results as expected.

Time-varying convergence in European electricity spot markets and their association with carbon and fuel prices

International Nuclear Information System (INIS)

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

2016-01-01

Long-run dynamics of electricity prices are expected to reflect fuel price developments, since fuels generally account for a large share in the cost of generation. As an integrated European market for electricity develops, wholesale electricity prices should be converging as a result of market coupling and increased interconnectivity. Electricity mixes are also changing, spurred by a drive to significantly increase the share of renewables. Consequently, the electricity wholesale price dynamics are evolving, and the fuel–electricity price nexus that has been described in the literature is likely to reflect this evolution. This study investigates associations between spot prices from the British, French and Nordpool markets with those in connected electricity markets and fuel input prices, from December 2005 to October 2013. In order to assess the time-varying dynamics of electricity spot price series, localized autocorrelation functions are used. Electricity spot prices in the three markets are found to have stationary and non-stationary periods. When a trend in spot prices is observed, it is likely to reflect the trend in fuel prices. Cointegration analysis is then used to assess co-movement between electricity spot prices and fuel inputs to generation. The results show that British electricity spot prices are associated with fuel prices and not with price developments in connected markets, while the opposite is observed in the French and Nordpool day-ahead markets. - Highlights: • Electricity market integration policies may have altered EU spot electricity prices. • LACF is used to assess the changing nature of electricity spot prices. • EU electricity spot prices show both stationary and non-stationary periods. • Carbon and fuel prices have greater impact on British spot prices. • In continental Europe, electricity prices have decoupled from fuel prices.

Seminar on support mechanisms to renewable energy sources and on electricity markets evolution

International Nuclear Information System (INIS)

Abadie, Pierre-Marie; Leinekugel Le Cocq, Thibaut; Najdawi, Celine; Rathmann, Max; Soekadar, Ann-Christin

2013-01-01

The French-German office for Renewable energies (OFAEnR) organised a Seminar on support mechanisms to renewable energy sources and on electricity markets evolution. In the framework of this French-German exchange of experience, about 150 participants exchanged views on support instruments to renewable energy sources in a context of decentralized power generation and evolving market design. This document brings together the available presentations (slides) made during this event: 1 - Overview of Support mechanisms to renewable energy sources and electricity market evolution in France (Pierre-Marie Abadie); 2 - Support mechanisms in Germany and in France. Similarities and Synergy potentials (Celine Najdawi); 3 - Keynote 'introduction to the French capacity market' (Thibaut Leinekugel Le Cocq); 4 - Power market design for a high renewables share (Max Rathmann); 5 - German electricity System and Integration of Renewable energies. The Current Discussion on the Necessity of Adapting the electricity Market Design (Ann-Christin Soekadar)

Proposal of a new architecture for the electricity market. Report for France Energie Eolienne

International Nuclear Information System (INIS)

2014-09-01

In a context of evolution of electricity markets in all European countries, with notably an increasing share of renewable energies (particularly wind and solar energy), and as there are two main objectives for the future electricity market rules (integration of renewable energies within the market, market adaptation to a strong development of these energies), this document reports the development of recommendations for the implementation of a market architecture which would promote these objectives in France. These recommendations concern the access to the grid, the wholesale market, adjustment rules, an additional remuneration for renewable energies, the retail market, and the carbon market

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

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

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

Spanish and Portuguese electric market in the context of UE

International Nuclear Information System (INIS)

Quinto, J. de; Villafruela, L.

2007-01-01

In accordance to the Unique Act and other EU legislation related to the achievement of a single market for goods and services, the EU Commission has promoted a whole internal electricity and gas market. Due to the specific difficulties to reach this objective in the electricity and gas case, the EU strategy changed into a progressive step process, in which the final objective should be reached by the progressive integration of different neighbour national markets. Anyway, this is not easy because there are differences related to national interests and because the harmonization of different regulations is so complex. The creation of a supranational electricity market in the Iberian mainland (MIBEL) can be considered as a piece of this European strategy and a way to improve competition both in Spain and Portugal at least by an increase of the market geographical scale.MIBEL process started in November 2001, but finally is working since July 2006. But the process is not finish yet: it is still necessary to develop some relevant regulatory aspects. (Author) 15 refs

Analysis of electricity price in Danish competitive electricity market

DEFF Research Database (Denmark)

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

2012-01-01

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

Electricity 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

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

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

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

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

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.

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

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

The Greek Electricity Market Reforms: Political and Regulatory Considerations

International Nuclear Information System (INIS)

Danias, Nikolaos; Kim Swales, John; McGregor, Peter

2013-01-01

The paper tracks the evolution of the Greek electricity market since the beginning of the liberalization process. Its progress is benchmarked against the criteria suggested by Littlechild (2006b). The Littlechild framework highlights key remaining deficiencies in the stances and policies adopted which need to be resolved in order for liberalization to proceed successfully. The focus is on the agendas of the Greek government, other domestic political forces and the European Union. A central requirement is the clear commitment to liberalization by the Greek government. In particular the government needs to give up political control over the previous vertically integrated, state-controlled electricity firm, Public Power Company (PPC), and allow more decision making powers and genuine independence to the market regulator. Liberalization is rendered more difficult by the present financial and economic crisis in Greece. - Highlights: • Greek electricity market liberalization is benchmarked against the Littlechild standard electricity market reform model. • Although the majority of the model requirements are met, liberalization in Greece is only partially successful. • Some elements of liberalization are qualitatively more significant than others. • More fundamental political economy issues need to be addressed in order for the liberalization to progress. • Financial crisis in Greece adds extra challenges

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

Large-scale offshore wind energy. Cost analysis and integration in the Dutch electricity market

International Nuclear Information System (INIS)

De Noord, M.

1999-02-01

The results of analysis of the construction and integration costs of large-scale offshore wind energy (OWE) farms in 2010 are presented. The integration of these farms (1 and 5 GW) in the Dutch electricity distribution system have been regarded against the background of a liberalised electricity market. A first step is taken for the determination of costs involved in solving integration problems. Three different types of foundations are examined: the mono-pile, the jacket and a new type of foundation: the concrete caisson pile: all single-turbine-single-support structures. For real offshore applications (>10 km offshore, at sea-depths >20 m), the concrete caisson pile is regarded as the most suitable. The price/power ratios of wind turbines are analysed. It is assumed that in 2010 turbines in the power range of 3-5 MW are available. The main calculations have been conducted for a 3 MW turbine. The main choice in electrical infrastructure is for AC or DC. Calculations show that at distances of 30 km offshore and more, the use of HVDC will result in higher initial costs but lower operating costs. The share of operating and maintenance (O ampersand M) costs in the kWh cost price is approximately 3.3%. To be able to compare the two farms, a base case is derived with a construction time of 10 years for both. The energy yield is calculated for a wind regime offshore of 9.0 m/s annual mean wind speed. Per 3 MW turbine this results in an annual energy production of approximately 12 GWh. The total farm efficiency amounts to 82%, resulting in a total farm capacity factor of 38%. With a required internal rate of return of 15%, the kWh cost price amounts to 0.24 DFl and 0.21 DFl for the 1 GW and 5 GW farms respectively in the base case. The required internal rate of return has a large effect on the kWh cost price, followed by costs of subsystems. O ampersand M costs have little effect on the cost price. Parameter studies show that a small cost reduction of 5% is possible when

Economic Assessment of Hydrogen Technologies Participating in California Electricity Markets

Energy Technology Data Exchange (ETDEWEB)

Eichman, Joshua [National Renewable Energy Lab. (NREL), Golden, CO (United States); Townsend, Aaron [National Renewable Energy Lab. (NREL), Golden, CO (United States); Melaina, Marc [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2016-02-19

As the electric sector evolves and increasing amounts of variable renewable generation are installed on the system, there are greater needs for system flexibility and sufficient capacity, and greater concern for overgeneration from renewable sources not well matched in time with electric loads. Hydrogen systems have the potential to support the grid in each of these areas. However, limited information is available about the economic competitiveness of hydrogen system configurations. This paper quantifies the value for hydrogen energy storage and demand response systems to participate in select California wholesale electricity markets using 2012 data. For hydrogen systems and conventional storage systems (e.g., pumped hydro, batteries), the yearly revenues from energy, ancillary service, and capacity markets are compared to the yearly cost to establish economic competitiveness. Hydrogen systems can present a positive value proposition for current markets. Three main findings include: (1) For hydrogen systems participating in California electricity markets, producing and selling hydrogen was found to be much more valuable than producing and storing hydrogen to later produce electricity; therefore systems should focus on producing and selling hydrogen and opportunistically providing ancillary services and arbitrage. (2) Tighter integration with electricity markets generates greater revenues (i.e., systems that participate in multiple markets receive the highest revenue). (3) More storage capacity, in excess of what is required to provide diurnal shifting, does not increase competitiveness in current California wholesale energy markets. As more variable renewable generation is installed, the importance of long duration storage may become apparent in the energy price or through additional markets, but currently, there is not a sufficiently large price differential between days to generate enough revenue to offset the cost of additional storage. Future work will involve

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

Electricity prices, large-scale renewable integration, and policy implications

International Nuclear Information System (INIS)

Kyritsis, Evangelos; Andersson, Jonas; Serletis, Apostolos

2017-01-01

This paper investigates the effects of intermittent solar and wind power generation on electricity price formation in Germany. We use daily data from 2010 to 2015, a period with profound modifications in the German electricity market, the most notable being the rapid integration of photovoltaic and wind power sources, as well as the phasing out of nuclear energy. In the context of a GARCH-in-Mean model, we show that both solar and wind power Granger cause electricity prices, that solar power generation reduces the volatility of electricity prices by scaling down the use of peak-load power plants, and that wind power generation increases the volatility of electricity prices by challenging electricity market flexibility. - Highlights: • We model the impact of solar and wind power generation on day-ahead electricity prices. • We discuss the different nature of renewables in relation to market design. • We explore the impact of renewables on the distributional properties of electricity prices. • Solar and wind reduce electricity prices but affect price volatility in the opposite way. • Solar decreases the probability of electricity price spikes, while wind increases it.

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...

Power system and market integration of renewable electricity

Science.gov (United States)

Erdmann, Georg

2017-07-01

This paper addresses problems of power generation markets that arise under high shares of intermittent generation. After discussing the economic fundamentals of wind and photovoltaic investments, the paper introduces the concept of the "Merit order effect of renewables". According to this concept electricity prices on wholesale power markets become smaller in periods during which large volumes of wind and photovoltaic generation is available and squeeze out relative expensive gas-fired power generation. The merit order effect of renewables has a couple of consequences. Among others it challenges the profitability of conventional power generation. If such generation capacities are still necessary, at least during a transitory period, a capacity mechanism may be put in place that generates an additional stream of income to the operators of conventional power generators. Another consequence of growing intermittent power generation is the need for concepts and technologies that deal with excess generation. Among these concepts are virtual and physical power storage capacities. In the last parts of the paper models are presented that are able to analyze these concepts from an economic point of view.

Demand participation in the restructured Electric Reliability Council of Texas market

International Nuclear Information System (INIS)

Zarnikau, Jay W.

2010-01-01

Does an electricity market which has been restructured to foster competition provide greater opportunities for demand response than a traditional regulated utility industry? The experiences of the restructured Electric Reliability Council of Texas (ERCOT) market over the past eight years provide some hope that it is possible to design a competitive market which will properly value and accommodate demand response. While the overall level of demand response in ERCOT is below the levels enjoyed prior to restructuring, there have nonetheless been some promising advances, including the integration of demand-side resources into competitive markets for ancillary services. ERCOT's experiences demonstrate that the degree of demand participation in a restructured market is highly sensitive to the market design. But even in a market which has been deregulated to a large degree, regulatory intervention and special demand-side programs may be needed in order to bolster demand response. (author)

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

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

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

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)

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

Transmission topologies for the integration of renewable power into the electricity systems of North Africa

International Nuclear Information System (INIS)

Brand, Bernhard

2013-01-01

A cost-minimizing electricity market model was used to explore optimized infrastructures for the integration of renewable energies in interconnected North African power systems until 2030. The results show that the five countries Morocco, Algeria, Tunisia, Libya and Egypt could together achieve significant economic benefits, reaching up to €3.4 billion, if they increase power system integration, build interconnectors and cooperate on joint utilization of their generation assets. Net electricity exports out of North Africa to Europe or Eastern Mediterranean regions, however, were not observed in the regime of integrated electricity markets until 2030, and could only be realized by much higher levels of renewable energy penetration than currently foreseen by North African governments. - Highlights: • Market model to optimize North Africa's generation and transmission infrastructures until 2030. • Simulations consider existing interconnectors, power plant inventories, as well as national renewable goals. • Savings of up to €3.4 billion can be realized by more cooperation and integrated system planning. • No electricity exports to Europe in a competitive market framework, except for very high renewable penetrations

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

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.

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

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...

Functioning of the Finnish electricity wholesale markets; Saehkoen tukkumarkkinan toimivuus Suomessa

Energy Technology Data Exchange (ETDEWEB)

Vehvilainen, I.; Broeckl, M.; Hakala, L.; Vanhanen, J.

2012-12-15

The purpose of common Nordic electricity market has been to increase competition and efficiency. Market seems to be moving to the opposite direction in the 2010s. Wholesale market has become more fragmented as the market is split to larger number of price areas more often. Poor functioning of the wholesale markets is also the largest contributor to problems in the retail market. Politicians, market regulators, transmission system operators, and market players need to take action to improve the functioning of the market. Separation of price areas reduces competition in all market areas. The Finnish wholesale market is moderately or highly concentrated when Finland is separated from other price areas. Concentration is moderate, if all production capacity is considered. If only price setting hydropower and condensing power capacity are considered, the market is highly concentrated. High concentration can provide opportunities for the biggest producers to use strategic bidding to increase market prices. Larger number of price areas has reduced competition and liquidity with the financial area price products or CfDs. Poor functioning of CfD markets is emphasized by the low competition within the price areas. Bottlenecks between market areas create income for the Transmission System Operators (TSOs) that are responsible of the border transmissions. TSOs have no economic incentives to maintain and repair the border transmission lines, which seems peculiar when compared to e.g. regulation of electricity distribution companies. Finnish Fingrid shows a good example on transparent disclosure of received income and how the accrued funds are used. Import of electricity from Russia to Finland has been reduced since the end of 2011 because of the changes made in the Russian electricity market. Market liberalization in Russia has lead to a market structure that is different from the Nordic markets. Despite the differences, the two markets are becoming more integrated as the

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...

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.

Congestion management in the European electricity market; Engpassmanagement im Europaeischen Strommarkt

Energy Technology Data Exchange (ETDEWEB)

Dieckmann, Birgit

2008-11-24

The author of the contribution under consideration reports on an assessment of methods of congestion management employed in Europe with respect to their effectiveness and identify possible reasons for the misallocation of cross-border transmission capacity. For this, generation structures of European countries and the resulting prices and load flows are analysed. Different power plants and bottlenecks in the transmission network currently cause structural price differences due to a low degree of integration of European electricity markets. By means of congestion management, the formation of a uniform electricity market will be created.

Assessing the options for a competitive electricity market in Israel

International Nuclear Information System (INIS)

Tishler, A.; Newman, J.; Spekterman, I.; Woo, C.K.

2008-01-01

In July 2006, the Israeli government affirmed its 2003 decision to reform the Israeli electricity industry, currently dominated by the Israel Electric Corporation (IEC), a government-owned vertically integrated electric utility. The reform calls for the deregulation and privatization of the generation and customer service segments of the industry, leaving transmission and distribution (T and D) regulated to provide open access to all end-users. This paper projects the performance of the post-reform market structure for the period 2007-2030 relative to that of the status quo. The post-reform generation market's prices are determined according to the Cournot conjecture. To mitigate excessive price volatility and surges, the generation market also includes a firm that is contracted to make peak electricity sales to customers at a pre-determined price, only when the competitive price exceeds the pre-determined level. Our results show (a) the post-reform retail prices for end-users will exceed those under the status quo; (b) the post-reform profits may not be sufficient to keep firms operating combined cycle generation units financially viable; and (c) the net benefit from deregulating the electricity sector in Israel will most likely be negative. (author)

Price Signals from Electricity Markets and Subsidy Schemes for Renewable Sources

International Nuclear Information System (INIS)

Sabolic, D.

2013-01-01

Increasing share of renewable generation itself gives rise to price risks on the electricity markets. Subsidy schemes, in general, additionally distort price signals produced by economic mechanisms of otherwise free markets. In the electricity industry, subsidy schemes, once designed merely to incentivize electricity system decarbonization in its kick-off phase, seem to have grown to such a volume, that they, too, started to profoundly interfere with the whole market structure, and to distort price signals that used to govern long-term development of an adequately structured generation system. This article was made as an attempt to discuss contemporary electricity system policies in relation to RES integration. The economic relations in the sector are growingly influenced, or sometimes even hard-handedly guided, by political institutions, rather than by economic interests of the investors, which may in turn cause considerable problems in achieving ultimate policy goals due to unsustainability of such an economic arrangement.(author)

An integrated ant colony optimization approach to compare strategies of clearing market in electricity markets. Agent-based simulation

International Nuclear Information System (INIS)

Azadeh, A.; Maleki-Shoja, B.; Skandari, M.R.

2010-01-01

In this paper, an innovative model of agent based simulation, based on Ant Colony Optimization (ACO) algorithm is proposed in order to compare three available strategies of clearing wholesale electricity markets, i.e. uniform, pay-as-bid, and generalized Vickrey rules. The supply side actors of the power market are modeled as adaptive agents who learn how to bid strategically to optimize their profit through indirect interaction with other actors of the market. The proposed model is proper for bidding functions with high number of dimensions and enables modelers to avoid curse of dimensionality as dimension grows. Test systems are then used to study the behavior of each pricing rule under different degrees of competition and heterogeneity. Finally, the pricing rules are comprehensively compared using different economic criteria such as average cleared price, efficiency of allocation, and price volatility. Also, principle component analysis (PCA) is used to rank and select the best price rule. To the knowledge of the authors, this is the first study that uses ACO for assessing strategies of wholesale electricity market. (author)

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

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

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.

Key Features of Electric Vehicle Diffusion and Its Impact on the Korean Power Market

Directory of Open Access Journals (Sweden)

Dongnyok Shim

2018-06-01

Full Text Available The market share of electric vehicles is growing and the interest in these vehicles is rapidly increasing in industrialized countries. In the light of these circumstances, this study provides an integrated policy-making package, which includes key features for electric vehicle diffusion and its impact on the Korean power market. This research is based on a quantitative analysis with the following steps: (1 it analyzes drivers’ preferences for electric or traditional internal combustion engine (ICE vehicles with respect to key automobile attributes and these key attributes indicate what policy makers should focus on; (2 it forecasts the achievable level of market share of electric vehicles in relation to improvements in their key attributes; and (3 it evaluates the impact of electric vehicle diffusion on the Korean power market based on an achievable level of market share with different charging demand profiles. Our results reveal the market share of electric vehicles can increase to around 40% of the total market share if the key features of electric vehicles reach a similar level to those of traditional vehicles. In this estimation, an increase in the power market’s system generation costs will reach around 10% of the cost in the baseline scenario, which differs slightly depending on charging demand profiles.

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)

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)

Power system and market integration of renewable electricity

Directory of Open Access Journals (Sweden)

Erdmann Georg

2017-01-01

Full Text Available This paper addresses problems of power generation markets that arise under high shares of intermittent generation. After discussing the economic fundamentals of wind and photovoltaic investments, the paper introduces the concept of the “Merit order effect of renewables”. According to this concept electricity prices on wholesale power markets become smaller in periods during which large volumes of wind and photovoltaic generation is available and squeeze out relative expensive gas-fired power generation. The merit order effect of renewables has a couple of consequences. Among others it challenges the profitability of conventional power generation. If such generation capacities are still necessary, at least during a transitory period, a capacity mechanism may be put in place that generates an additional stream of income to the operators of conventional power generators. Another consequence of growing intermittent power generation is the need for concepts and technologies that deal with excess generation. Among these concepts are virtual and physical power storage capacities. In the last parts of the paper models are presented that are able to analyze these concepts from an economic point of view.

The North American electricity markets

International Nuclear Information System (INIS)

Harvie, I.

1999-01-01

The wide ranging changes that will drive the evolution of the North American electricity industry in the future are discussed. Deregulation and the advent of competition in both the United States and Canada are the principal forces that will change the shape of the electricity market, bringing new players and new forms of doing business into the marketplace. A review of the current state of the business shows that especially in the United States where deregulation began earlier than in Canada, independent generators already constitute a multi-billion dollar industry. Non-utility generation capacity is about seven per cent of total U.S. capacity and accounts for about 10 per cent of total U. S. electricity supply, including imports. Examples from other industries clearly show that restructuring and the breakup of vertically integrated industries could be accomplished much faster than anticipated, that a decrease in prices followed rapidly as products became more like commodities, and that decreasing prices fostered product differentiation and competition. Major legislation affecting the electric power industry in the U.S. and Canada (U.S. National Energy Policy Act 1992, Alberta Electric Utilities Act 1995, Ontario Energy Competition Act 1998) decreeing open access transmission, unbundling of generation, transmission and ancillary services, and promoting competition, and the impacts of these legislative actions are also reviewed. The most visible impact is the explosion that can be seen in power marketing and energy trading on a scale unimaginable only a few short years ago, where the total volume of trade may be worth multiples of the value of the underlying commodity. At the same time, there is concern about the reliability of the system, and thus making it imperative to find new ways to manage reliability. Various suggestions are made as to how increased reliability of supply could be achieved by better management, new standards and better enforcement of

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

The integration of gas and electricity: potential effects on competition in markets

International Nuclear Information System (INIS)

Lopez Milla, J.

2007-01-01

During the last years, an increasing number of gas and electricity companies have integrated their activities in both sectors. Following this trend, several Mergers and Acquisitions between gas and electricity companies have emerged, and some of them have been cross-borders operations that have given rise to multinational enterprises. This paper analyses the causes of the integration of gas and electricity activities, and examines its implications on regulation and competition policy, showing that these changes in the energy industry raise new challenges and compel to adopt new measures in that field of the economic policy. (Author) 25 refs

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

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.

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

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.

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

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

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...

Why (and how) to regulate power exchanges in the EU market integration context?

International Nuclear Information System (INIS)

Meeus, Leonardo

2011-01-01

The European Union (EU) market integration is leading to increasingly monopolistic electricity market infrastructures, which has opened a debate on the regulation of these so-called power exchanges. In this paper, we start by stating that there are two types of power exchanges in Europe, i.e. 'merchant' and 'cost-of-service regulated' power exchanges. We then discuss how regulation can be used to better align their incentives with the main power exchange tasks. We conclude that adopting the cost-of-service regulated model for all power exchanges in Europe could be counterproductive in the current context, but that regulation can help ensure that the benefits of the EU market integration materialize. Promising regulatory actions include tempering the reinforced market power of power exchanges, and quality-of-service regulation for the ongoing cooperation among power exchanges to organize trade across borders. - Research highlights: → Market integration is leading to increasingly monopolistic electricity market infrastructures. → Regulation can help tempering the market power of these so-called power exchanges in Europe. → Cost-of-service regulation for all power exchanges could however be counterproductive. → More promising is to subject cooperation among power exchanges to quality of service regulation.

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...

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)

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

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.)

Energy markets and European Integration: The World Energy Council role

International Nuclear Information System (INIS)

Murray, J.

2002-01-01

Energy market reform brings many benefits. Central and East Europe's challenge is to establish such markets when, at list in the case of electricity, the established market economies are still wrestling with how to apply competitive principles to this market. Design challenges include the natural monopoly elements within the electricity supply chain and the fact that it is, in practical terms, as essential social service. There is no one single model suitable to all markets at all stages of development. At the same time, there is a need for sustainable energy pricing, which means prices should cover all costs, with transparent and time-limited subsidies bringing the afford ability gap. Cross-border integration extends the benefits available from market reform by overcoming constraints at the national level and by broadening the geographical limits of a market. The World Energy Council works with its Central and East European members to analyse, understand and meet these challenges. (author)

The surveillance of the electricity wholesale market and emission trading market; Die Ueberwachung von Stromgrosshandelsmarkt und Emissionshandelsmarkt

Energy Technology Data Exchange (ETDEWEB)

Luedemann, Volker [Hochschule Osnabrueck (Germany). Forschungszentrum Energiewirtschaft/Energierecht (fee); Hochschule Osnabrueck (Germany). Wirtschafts- und Wettbewerbsrecht; Konar, Selma [Sozietaet Becker Buettner Held, Muenchen (Germany)

2015-05-15

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.

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.)

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.

Legal unbundling and auctions in vertically integrated (utilities) markets

Czech Academy of Sciences Publication Activity Database

van Koten, Silvester

2013-01-01

Roč. 36, č. 3 (2013), s. 543-573 ISSN 0929-1261 R&D Projects: GA MŠk LC542 Institutional support: RVO:67985998 Keywords : regulation * vertical integration * electricity markets Subject RIV: AH - Economics Impact factor: 0.330, year: 2013

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.

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.)

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)

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

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.

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

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)

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...

Integration of European Bond Markets

DEFF Research Database (Denmark)

Christiansen, Charlotte

2014-01-01

I investigate the time variation in the integration of EU government bond markets. The integration is measured by the explanatory power of European factor portfolios for the individual bond markets for each year. The integration of the government bond markets is stronger for EMU than non-EMU memb......I investigate the time variation in the integration of EU government bond markets. The integration is measured by the explanatory power of European factor portfolios for the individual bond markets for each year. The integration of the government bond markets is stronger for EMU than non...

A comprehensive market-based scheme for VAR management and pricing in the electricity markets

Energy Technology Data Exchange (ETDEWEB)

El-Araby, E.E. [Qassim Univ., Alqassim, Meldia (Saudi Arabia). Dept. of Electrical Engineering

2009-07-01

In order to enable a power system to operate within an acceptable degree of reliability and security, the provision of VAR ancillary services from the VAR sources in electricity markets is the most effective method. The procurement of VAR services is particularly problematic for transmission operators as it relates to pricing mechanism and various technical issues during system operation. This paper proposed an integrated market-based approach for pricing VAR service in the electricity market. The paper was an extension of the authors' proposal for the provision of the VAR service from dynamic VAR sources in a competitive market-based environment. The formulation was modified to include VAR utilization payment and possible power system transition states multiple base cases and contingencies with their associated occurrence probabilities. The paper discussed the basic terms of the proposed approach including the VAR market objective and generator VAR output and its compensation. The mathematical formulation that considered VAR capacity payment, utilization payment and operating costs under the previous transition states in a unified single problem were introduced. The overall problem formulation and solution algorithm were also presented as a large-scale mixed integer nonlinear optimization problem. It was concluded that the proposed method was suited for the simulation and analysis of the existing VAR market. 8 refs., 3 tabs., 5 figs., 2 appendices.

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

The integrated North American electricity market : a bi-national model for securing a reliable supply of electricity

International Nuclear Information System (INIS)

Egan, T.

2004-03-01

The 50 million people who experienced the power blackout on August 14, 2003 in southern Ontario and the U.S. Midwest and Northeast understood how vital electricity is in our day-to-day lives, but they also saw the resiliency of the North American electricity system. More than 65 per cent of the power generation was restored to service within 12 hours and no damage was caused to the generation or transmission facilities. Although the interconnected North American electricity system is among the most reliable in the world, it is threatened by an aging infrastructure, lack of new generation and transmission to meet demand, and growing regulatory pressures. This report suggests that any measures that respond to the threat of ongoing reliability should be bi-national in scope due to the interconnected nature of the system. Currently, the market, regulatory and administrative systems are different in each country. The full engagement and cooperation of both Canada and the United States is important to ensure future cross-border trade and power reliability. The Canadian Electricity Association proposes the following 7 measures: (1) support an open debate on all the supply options available to meet growing power demands, (2) promote bi-national cooperation in the construction of new transmission capacity to ensure a reliable continental electricity system, (3) examine opportunities for bi-national cooperation for investment in advanced transmission technologies and transmission research and development, (4) promote new generation technology and demand-side measures to relieve existing transmission constraints and reduce the need for new transmission facilities, (5) endorse a self-governing international organization for developing and enforcing mandatory reliability standards for the electricity industry, (6) coordinate measures to promote critical infrastructure protection, and (7) harmonize U.S. and Canadian efforts to streamline or clarify regulation of electricity

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...

Toward a new, integrated interactive electric power and natural gas industry

International Nuclear Information System (INIS)

Anon.

1995-01-01

The movement toward a new, integrated interactive electric power and natural gas industry is discussed. This movement envisions more competition and fewer competitors. The key capabilities of the new market are described. It is concluded that what will make an energy business succeed is the ability to aggregate supply and markets, to optimize routing, to improve load factors, and to provide added levels of reliability through diversity. The strong organization that is able to deal in all forms of energy is a necessary part of this new paradigm of the integrated energy market

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.

Elspot: Nord Pool Spot Integration in MASCEM Electricity Market Simulator

DEFF Research Database (Denmark)

Fernandes, Ricardo; Santos, Gabriel; Praca, Isabel

2014-01-01

The energy sector in industrialized countries has been restructured in the last years, with the purpose of decreasing electricity prices through the increase in competition, and facilitating the integration of distributed energy resources. However, the restructuring process increased the complexi...

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)

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...

Promoting the market and system integration of renewable energies through premium schemes—A case study of the German market premium

International Nuclear Information System (INIS)

Gawel, Erik; Purkus, Alexandra

2013-01-01

With the share of renewable energies within the electricity sector rising, improving their market and system integration is of increasing importance. By offering plant operators a premium on top of the electricity market price, premium schemes represent an option to increase the alignment of renewable electricity production with market signals, and have been implemented by several EU member states. This paper examines the case study of the German market premium scheme adopted in 2012. Building on an evaluation of early experiences, we discuss whether the market premium contributes to the aims of market and/or system integration (effectiveness), and what potential efficiency gains and additional costs of “administering integration” are associated with it (efficiency). While exposing renewables to price risks is not the scheme’s purpose, it has successfully increased participation in direct marketing. However, risks of overcompensating producers for marketing and balancing costs are high, and the benefits of gradually leading plant operators towards the market are questionable. Incentives for demand-oriented production are established, but they seem insufficient particularly in the case of intermittent renewable energy sources. To conclude, we provide an outlook on alternative designs of premium schemes, and discuss whether they seem better suited for addressing the challenges ahead. - Highlights: • Premium schemes are used to align renewable energy sources (RES) with market signals. • We examine the effectiveness and efficiency of the German market premium scheme. • Participation in direct marketing has increased, but so have support costs. • For intermittent RES, incentives for demand-oriented production are insufficient. • Efficiency gains from exposing RES to market risks entail several trade-offs

Why (and how) to regulate power exchanges in the EU market integration context?

Energy Technology Data Exchange (ETDEWEB)

Meeus, Leonardo, E-mail: leonardo.meeus@eui.e [Florence School of Regulation, Robert Schuman Centre for Advanced Studies, European University Institute, Via Boccaccio 151, Florence (Italy); Electrical Engineering Department (ESAT-ELECTA), KULeuven, Kasteelpark Arenberg 10, Heverlee (Belgium)

2011-03-15

The European Union (EU) market integration is leading to increasingly monopolistic electricity market infrastructures, which has opened a debate on the regulation of these so-called power exchanges. In this paper, we start by stating that there are two types of power exchanges in Europe, i.e. 'merchant' and 'cost-of-service regulated' power exchanges. We then discuss how regulation can be used to better align their incentives with the main power exchange tasks. We conclude that adopting the cost-of-service regulated model for all power exchanges in Europe could be counterproductive in the current context, but that regulation can help ensure that the benefits of the EU market integration materialize. Promising regulatory actions include tempering the reinforced market power of power exchanges, and quality-of-service regulation for the ongoing cooperation among power exchanges to organize trade across borders. - Research highlights: {yields} Market integration is leading to increasingly monopolistic electricity market infrastructures. {yields} Regulation can help tempering the market power of these so-called power exchanges in Europe. {yields} Cost-of-service regulation for all power exchanges could however be counterproductive. {yields} More promising is to subject cooperation among power exchanges to quality of service regulation.

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.)

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

The Mexican market for electrical equipment and services

International Nuclear Information System (INIS)

Robinson, J.

1994-05-01

Most of Mexico's electric power needs are supplied by the Comision Federal de Electricidad (CFE). Total installed capacity is ca 33,000 MW, of which ca 42% comes from oil-fired generation and 26% hydroelectric. Electricity consumption is expected to grow at ca 6%/y between 1993 and 2000; to meet this demand, CFE plans to build nearly 14,000 MW of additional generating capacity to cost ca $34 billion. A new law governing the electric power sector recently privatized electrical project construction and provided for private financing. Construction of all larger generation and transmission projects has been privatized, thereby deregulating and simplifying the bidding process for Canadian firms wishing to bid, subcontract, or supply equipment or materials. The most notable opportunities for Canadian firms are in transmission projects. The Mexican electrical manufacturing industry comprises ca 2,000 firms employing 150,000 people. Branch plants of global firms plus domestic companies supply over 70% of market demand. Production of equipment and materials for the electrical sector is well integrated with suppliers and customers, and manufacturers are seeking imports to replace abandoned product lines as the industry rationalizes. These, along with more sophisticated equipment not made in Mexico, provide opportunities for Canadian suppliers. The North American Free Trade Agreement gives preference to Canadians over offshore competitors, and eliminates many barriers to exports. Canada's Export Development Corporation provides financing with a line of credit for the electrical sector. Marketing in Mexico is best done through personal visits and capable local representation. A directory of Mexican electrical manufacturers who import is appended. 1 tab

The Future Organization of Danish Electricity Market for Integrating DERs - a View of FlexPower Project

DEFF Research Database (Denmark)

Li, Yang; Zhang, Chunyu; Ding, Yi

2013-01-01

in mobilizing small-scale DERs to participate in the existing electricity market, is proposed in this paper to cope with the day-ahead, intra-day and regulating power market. Possible future organizations of different time-scale markets are also introduced and discussed with the precise roles...

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)

Optimization models and techniques for implementation and pricing of electricity markets

International Nuclear Information System (INIS)

Madrigal Martinez, M.

2001-01-01

The operation and planning of vertically integrated electric power systems can be optimized using models that simulate solutions to problems. As the electric power industry is going through a period of restructuring, there is a need for new optimization tools. This thesis describes the importance of optimization tools and presents techniques for implementing them. It also presents methods for pricing primary electricity markets. Three modeling groups are studied. The first considers a simplified continuous and discrete model for power pool auctions. The second considers the unit commitment problem, and the third makes use of a new type of linear network-constrained clearing system model for daily markets for power and spinning reserve. The newly proposed model considers bids for supply and demand and bilateral contracts. It is a direct current model for the transmission network

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

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

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

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

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

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

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

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

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

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

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

Electricity Prices, Large-Scale Renewable Integration, and Policy Implications

OpenAIRE

Kyritsis, Evangelos; Andersson, Jonas; Serletis, Apostolos

2016-01-01

This paper investigates the effects of intermittent solar and wind power generation on electricity price formation in Germany. We use daily data from 2010 to 2015, a period with profound modifications in the German electricity market, the most notable being the rapid integration of photovoltaic and wind power sources, as well as the phasing out of nuclear energy. In the context of a GARCH-in-Mean model, we show that both solar and wind power Granger cause electricity prices, that solar power ...

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)

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...

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

Market integration in the crustaceans market

DEFF Research Database (Denmark)

Ankamah-Yeboah, Isaac; Bronnmann, Julia

2018-01-01

are substitutes. Price determination processes for the shrimp markets vary with the level of the value chain. The results imply that the wild and farmed crustaceans markets are interacting through substitution effects. Hence, the markets have the capability to shield volatile and rising prices that would emanate......In this paper the price dynamics and the degree of market integration in the German crustaceans market is examined using cointegration methods. The study focuses on wild caught cold water shrimp, farmed warm water shrimp as well as lobster and derives implications for the fisheries sector....... In the analysis, both the import market and the retail market price reactions are distinguished. Therefore, it is evaluated how price changes affect competing commodities within and between the value chain of a given crustaceans commodity. Evidence of partial market integration is found for all species under...

Benefits for wind energy in electricity markets from using short term wind power prediction tools: a simulation study

International Nuclear Information System (INIS)

Usaola, J.; Ravelo, O.; Gonzalez, G.; Soto, F.; Davila, M.C.; Diaz-Guerra, B.

2004-01-01

One of the characteristics of wind energy, from the grid point of view, is its non-dispatchability, i.e. generation cannot be ordered, hence integration in electrical networks may be difficult. Short-term wind power prediction-tools could make this integration easier, either by their use by the grid System Operator, or by promoting the participation of wind farms in the electricity markets and using prediction tools to make their bids in the market. In this paper, the importance of a short-term wind power-prediction tool for the participation of wind energy systems in electricity markets is studied. Simulations, according to the current Spanish market rules, have been performed to the production of different wind farms, with different degrees of accuracy in the prediction tool. It may be concluded that income from participation in electricity markets is increased using a short-term wind power prediction-tool of average accuracy. This both marginally increases income and also reduces the impact on system operation with the improved forecasts. (author)

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

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.

How to make a European integrated market in small and isolated electricity systems? The case of the Canary Islands

International Nuclear Information System (INIS)

Perez, Yannick; Ramos Real, Francisco Javier

2008-01-01

This paper presents a geographic dimension not often studied in the dynamics of creating an internal market for electricity within the European Union, namely the case of small European electricity systems like those found on the Greek islands of Cyprus and Crete. Our question, then, is how to achieve a suitable internal market for electricity in small and isolated systems. To address this issue, we identify the main problems to be overcome by introducing a methodology in which the Canary Islands experience is taken as a case study for understanding the challenges in creating an 'EU-like market for electricity'. Our results show that the design of the vertical industrial structure and the figure of the grid operator and its attributes are key features for the proper operation of any electrical system. We also stress the minor roles of other possible options to achieve this EU-compatible market by highlighting first, in the wholesale market, the call-for-tender solution to introduce more generation and the risk of using safety requirements as barriers to entry in these small markets, and second, in the supply activities, the potential problems of an improperly regulated tariff scheme. (author)