WorldWideScience

Sample records for electricity markets insights

  1. 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....

  2. 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

  3. Swedish electricity market 1996

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1996-11-01

    The organization of the Swedish electricity market has been in a state of continual change since the electricity market reform was started in the early 1990s. The conditions for the development of the electricity market have changed since the new Electricity Act came into force on 1 January 1996. The purpose of the reform is to introduce greater competition on the electricity market and provide the consumers with greater freedom of choice and, by open trade in electricity, to create the conditions for more efficient pricing. Being the central energy authority, the Swedish National Board for Industrial and Technical Development, NUTEK, was entrusted by the Government with the task of following developments on the Swedish electricity market. The Network Authority, which has the supervisory function for the new electricity market, were entrusted by the Government with the task of following developments on the Swedish electricity market and regularly compiling and reporting current market information. The new electricity market has now been operative for ten months. The Network Authority has submitted to the Government a detailed report entitled `Developments on the electricity market`, dealing with the experience gained from the electricity market reform. The purpose of the publication is to provide the players on the electricity market - the decision makers, the media and the general public - with comprehensive and easily accessible information on the market conditions. The publication includes summaries of information on electricity production and use in recent years, the structure of the electricity market from the perspective of a player, electricity trade in Sweden and in northern Europe, electricity prices in Sweden and other countries, and the impact of the electricity sector on the environment

  4. 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

  5. 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.

  6. 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

  7. 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.

  8. 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

  9. 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...

  10. Balancing reserves within a decarbonized European electricity system in 2050. From market developments to model insights

    Energy Technology Data Exchange (ETDEWEB)

    Lorenz, Casimir [German Institute for Economic Research (DIW Berlin), Berlin (Germany). Dept. of Energy, Transportation, Environment; Univ. of Technology, Berlin (Germany). Workgroup for Infrastructure Policy (WIP)

    2017-03-30

    This paper expands the discussion about future balancing reserve provision to the long-term perspective of 2050. Most pathways for a transformation towards a decarbonized electricity sector rely on very high shares of fluctuating renewables. This can be a challenge for the provision of balancing reserves, although their influence on the balancing cost is unclear. Apart from the transformation of the generation portfolio, various technical and regulatory developments within the balancing framework might further influence balancing costs: i) dynamic dimensioning of balancing reserves, ii) provision by fluctuating renewables or new (battery) storage technologies, and iii) exchange of balancing reserves between balancing zones. The first part of this paper discusses and transforms these developments into quantitative scenario definitions. The second part applies these scenarios to dynELMOD (dynamic Electricity Model), an investment model of the European electricity system that is extended to include balancing reserve provision. In contrast to other models applied in most papers on balancing reserves, this model is capable of evaluating the interdependencies between developments in balancing reserve provision and high shares of fluctuating renewables jointly. The results show that balancing reserve cost can be kept at current levels for a renewable electricity system until 2050, when using a dynamic reserve sizing horizon. Apart from the sizing horizon, storage capacity withholding duration and additional balancing demand from RES are the main driver of balancing costs. Renewables participation in balancing provision is mainly important for negative reserves, while storages play an important role for the provision of positive reserves. However, only on very few occasions, additional storage investments are required for balancing reserve provision, as most of the time sufficient storage capacities are available in the electricity system.

  11. 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.)

  12. 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, determin...... coupled day-ahead markets for the member states and co-ordination for balancing, by looking into coupling mechanisms that promote the effective cooperation between the power systems of various countries.......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......, deterministic market designs were considered adequate with straightforward setups consisting of a forward optimal allocation accompanied by a real-time balancing mechanism. However, as the share of renewable sources of energy (RES) increases, such market designs tend to become inefficient since they were...

  13. Electric power market regulations in UK

    International Nuclear Information System (INIS)

    Federico, G.; Napolano, L.

    2000-01-01

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

  14. Essays on electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Rud, Linda

    2009-07-01

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

  15. 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

  16. 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

  17. Electricity market modeling trends

    International Nuclear Information System (INIS)

    Ventosa, Mariano; Baillo, Alvaro; Ramos, Andres; Rivier, Michel

    2005-01-01

    The trend towards competition in the electricity sector has led to efforts by the research community to develop decision and analysis support models adapted to the new market context. This paper focuses on electricity generation market modeling. Its aim is to help to identify, classify and characterize the somewhat confusing diversity of approaches that can be found in the technical literature on the subject. The paper presents a survey of the most relevant publications regarding electricity market modeling, identifying three major trends: optimization models, equilibrium models and simulation models. It introduces a classification according to their most relevant attributes. Finally, it identifies the most suitable approaches for conducting various types of planning studies or market analysis in this new context

  18. 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)

  19. 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...

  20. The electricity market 2002

    International Nuclear Information System (INIS)

    2002-01-01

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

  1. The electricity market 2002

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2002-10-01

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

  2. Electricity marketing and retailing

    Energy Technology Data Exchange (ETDEWEB)

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

    2001-07-01

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

  3. ELECTRICITY MARKET DEVELOPMENT IN LATVIA

    OpenAIRE

    Bride, Diana; Zvaigzne, Anda

    2016-01-01

    Electricity is crucial to the development, progress, security and overall lifestyle in the global economy. A common European electricity market requires market integration and transmission grid expansion, including cross-border interconnectors. The electricity market opening in Latvia was divided into four stages; it began with legal persons in 2007 and ended with household users on 1 January 2015. The aim of the research is to assess the development of the Latvian electricity market since th...

  4. 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.

  5. 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

  6. Electricity Market Interconnections and Electricity Price Volatility

    OpenAIRE

    Fonseca, Nuno; Duque, João

    2008-01-01

    In this paper, we present a model of changes in electricity price returns in the context of interconnected electricity markets. This model predicts an inverse relationship between the increase in interconnection capacity and the volatility of price returns in the corresponding electricity markets. This means that an increase of interconnection between two markets leads to a decrease in the volatility of their prices. We support our model with empirical results from the Australian, European an...

  7. Designing competitive electricity markets

    International Nuclear Information System (INIS)

    Chao, H.P.; Huntington, H.

    1998-01-01

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

  8. 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)

  9. 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)

  10. 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

  11. 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

  12. 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)

  13. 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)

  14. Electricity marketing and retailing

    International Nuclear Information System (INIS)

    Phillips, E.

    2001-01-01

    This power point presentation outlined the values of wholesale and retail marketing of natural gas to offer choice to all Canadians. The initial wholesale market dealt with physical bilaterals, financial bilaterals and transmission rights, while the mature wholesale market deals with futures contracts, reserve markets, dispatchable loads, swaps, trades and emissions trading. Wholesale prices include debt reduction charges, transmission charges transformation charges, ancillary charges, and independent market operator (IMO) fees. Retail rates offered by local distribution companies (LDC) include distribution charges, adjustments to SSS, and distribution losses. The role of marketers is to provide consumers with what they want, which is annual fixed rates with aggregation and load profiling as well as billing and procurement services

  15. 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.

  16. 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...

  17. Competition in electricity markets

    International Nuclear Information System (INIS)

    Taylor, W.

    1996-01-01

    This article examines expanded wholesale and retail competition and the effect that they are likely to have on the electric power industry. The author believes that expanded wholesale competition is good and will bring immediate benefit to all electric consumers; however, based on the experience of the natural gas industry and the electric power industry in California and other parts of the world, the author counsels caution in moving toward expanded retail competition

  18. Reforming the Russian electricity market

    International Nuclear Information System (INIS)

    Valladares, Mayra Rodriguez

    1999-08-01

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

  19. Electric power market - January 1989

    International Nuclear Information System (INIS)

    1989-01-01

    This bulletin deals with the brazilian electric power consumption in January 1989, containing data about the total consumption, the growth rates, the special tariffs and monthly evolution in each brazilian region. The economic indexes of industrial production, the market and the prices of electric power and petroleum products are also presented. (C.G.C.)

  20. Electric power and gas markets

    International Nuclear Information System (INIS)

    2001-01-01

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

  1. 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

  2. Marketing of electric vehicles

    DEFF Research Database (Denmark)

    Gärling, Anita; Thøgersen, John

    In this paper, an outline of a two-phased strategy for the targeted marketing of EVs is developed based, first, on a discussion of the current and expected future characteristics of EVs and, second, on a review of research on the characteristics of early adopters of new products....

  3. 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

  4. New electric power market

    International Nuclear Information System (INIS)

    Zorzoli, G.B.

    1992-01-01

    In a trend analysis of methods of energy production and use, this paper cites forecasted significant gains in efficiency through the use of combined cycles for heat and power production, and rapidly falling costs of solar and wind power plants. A technical/economic feasibility analysis is then performed on the future use of electric vehicles in Italy. Here, the paper cites the possible benefits in terms of energy conservation and air pollution abatement. A review is made of current progress in research efforts aimed at reducing electric battery sizing, weight and recharging constraints

  5. Marketing biofortified crops: insights from consumer research ...

    African Journals Online (AJOL)

    As the market for biofortified seed and food grows, farmers increasingly market their excess production to consumers. To develop a global strategy for consumer marketing of biofortified crops, research is needed to understand consumer perceptions, insights, and behaviors around food, agriculture, nutrition and ...

  6. Electricity costs in liberalized market

    International Nuclear Information System (INIS)

    Barkans, J.; Junghans, G.

    2006-01-01

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

  7. 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

  8. The liberalization of electricity markets

    International Nuclear Information System (INIS)

    Lepage, H.; Boucher, M.

    2001-01-01

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

  9. Market Intelligence : Building Strategic Insight

    OpenAIRE

    Søilen, Klaus Solberg; Jenster, Per

    2009-01-01

    Market Intelligence provides managers with helpful concepts, tools and ideas on market intelligence and analysis. Additionally, it gives the reader some of the analytical tools used to analyze both micro and macro factors in the organization’s environment to better predict future outcomes and help decision making. The field of competitive intelligence is studied by a diverse research community. Contributions are made to aid states on a national, regional and local level (Public Intelligence),...

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

    International Nuclear Information System (INIS)

    Barnstable, A.G.

    1999-01-01

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

  11. Wholesale electricity market indicators - December 2013

    International Nuclear Information System (INIS)

    2013-12-01

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

  12. Wholesale electricity markets indicators - September 2013

    International Nuclear Information System (INIS)

    2013-09-01

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

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

    International Nuclear Information System (INIS)

    Nepal, Rabindra; Jamasb, Tooraj

    2012-01-01

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

  14. 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

  15. Dynamics of electricity market correlations

    Science.gov (United States)

    Alvarez-Ramirez, J.; Escarela-Perez, R.; Espinosa-Perez, G.; Urrea, R.

    2009-06-01

    Electricity market participants rely on demand and price forecasts to decide their bidding strategies, allocate assets, negotiate bilateral contracts, hedge risks, and plan facility investments. However, forecasting is hampered by the non-linear and stochastic nature of price time series. Diverse modeling strategies, from neural networks to traditional transfer functions, have been explored. These approaches are based on the assumption that price series contain correlations that can be exploited for model-based prediction purposes. While many works have been devoted to the demand and price modeling, a limited number of reports on the nature and dynamics of electricity market correlations are available. This paper uses detrended fluctuation analysis to study correlations in the demand and price time series and takes the Australian market as a case study. The results show the existence of correlations in both demand and prices over three orders of magnitude in time ranging from hours to months. However, the Hurst exponent is not constant over time, and its time evolution was computed over a subsample moving window of 250 observations. The computations, also made for two Canadian markets, show that the correlations present important fluctuations over a seasonal one-year cycle. Interestingly, non-linearities (measured in terms of a multifractality index) and reduced price predictability are found for the June-July periods, while the converse behavior is displayed during the December-January period. In terms of forecasting models, our results suggest that non-linear recursive models should be considered for accurate day-ahead price estimation. On the other hand, linear models seem to suffice for demand forecasting purposes.

  16. Grid Integration of Electric Vehicles in Open Electricity Markets

    DEFF Research Database (Denmark)

    Presenting the policy drivers, benefits and challenges for grid integration of electric vehicles (EVs) in the open electricity market environment, this book provides a comprehensive overview of existing electricity markets and demonstrates how EVs are integrated into these different markets...... and power systems. Unlike other texts, this book analyses EV integration in parallel with electricity market design, showing the interaction between EVs and differing electricity markets. Future regulating power market and distribution system operator (DSO) market design is covered, with up-to-date case...... congestion management scenario within electric distribution networks •optimal EV charging management with the fleet operator concept and smart charging management •EV battery technology, modelling and tests •the use of EVs for balancing power fluctuations from renewable energy sources, looking at power...

  17. Th european market of the electric power

    International Nuclear Information System (INIS)

    2001-01-01

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

  18. Liquidity in the Dutch wholesale electricity market

    International Nuclear Information System (INIS)

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

    2003-05-01

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

  19. Using forward markets to improve electricity market design

    Energy Technology Data Exchange (ETDEWEB)

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

    2010-12-15

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

  20. Using forward markets to improve electricity market design

    International Nuclear Information System (INIS)

    Ausubel, Lawrence M.; Cramton, Peter

    2010-01-01

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

  1. 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)

  2. 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.

  3. 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

  4. 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

  5. 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

  6. Market Power in the German Wholesale Electricity Market

    OpenAIRE

    Müsgens, Felix

    2004-01-01

    This paper quantifies the degree of market power in the German wholesale electricity market. A fundamental model is used to derive competitive marginal cost estimators which are compared with observed electricity prices. Marginal costs are calculated focusing on market fundamentals such as plant capacities, fuel prices, and load structures. In addition, international power exchange and dynamic effects like start-up costs and hydro storage plant dispatch are incorporated. The comparison of mar...

  7. Marketing Green Fertilizers: Insights into Consumer Preferences

    Directory of Open Access Journals (Sweden)

    Johannes Dahlin

    2016-11-01

    Full Text Available In an effort to support the long-term viability of the bioenergy industry through an end market for digestate, we investigated purchasing preferences for fertilizer product features in the home gardening market. We conducted a discrete choice experiment (DCE, presenting 504 respondents with a total of 6048 product attribute choices in a simulated context that replicated the tradeoff decisions made in the real marketplace. We analyzed the choice data using a hierarchical Bayes estimate to generate part-worth utilities for fertilizer product attributes. We then conducted a latent class analysis to identify market segments that could be expected to respond to differentiated product design strategies. We were able to quantify both purchasing preferences for fertilizer product attributes as well as the importance of each attribute to the perceived utility of a product. We were further able to identify five distinct market segments that make clear the potential for differentiated strategies in the home gardening market. We found both negative and positive price sensitivities, with sociodemographically distinct subgroups that favored low-, mid-, and high-priced products. We also found purchasing preferences for brand status, product labeling and nutrient values. Our results provide insights that should help product managers in the biogas industry develop marketing strategies to integrate digestate into a sustainable energy production system.

  8. Risk management in a competitive electricity market

    International Nuclear Information System (INIS)

    Liu, Min; Wu, Felix F.

    2007-01-01

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

  9. Optimal electricity market for wind power

    International Nuclear Information System (INIS)

    Holttinen, H.

    2005-01-01

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

  10. 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)

  11. 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

  12. Technology mix configuration in liberalized electricity market

    International Nuclear Information System (INIS)

    Castro-Rodriguez, F.

    2007-01-01

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

  13. 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

  14. Decoding restricted participation in sequential electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Knaut, Andreas; Paschmann, Martin

    2017-06-15

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

  15. Participating in Ontario's competitive electricity market: an overview by the Independent Electricity Market Operator

    International Nuclear Information System (INIS)

    1999-12-01

    In Ontario's new competitive electricity market, suppliers will sell their product in new ways by offering choices to consumers for the first time, and generators from both within and without the province can participate in providing electricity to Ontario clients. Businesses and industries for whom electric power is a large part of their overall costs ought to consider the new option of participating directly in the wholesale market by buying and selling electric power themselves. At the opening of the new market, the manner in which electric power is purchased and sold will undergo a basic change: at the wholesale level, purchasers will be capable of submitting price bids for electric power and suppliers will be able to submit offers. These bids and offers are stacked by increasing price to be matched with the constantly changing demand for electric power throughout each day to determine which bids and offers are accepted. The Electricity Act ended the previous monopoly system for generating and selling electricity in Ontario, and created five new companies from the former Ontario Hydro. The Independent Electricity Market Operator (IMO) is completing the Market Rules for IMO administered markets in consultation with industry for approval by the government. The new wholesale electricity market provides equal, unbiased access to all generators, buyers, and sellers who are qualified to participate. The success of the market depends on wholesale market rules that promote competition, provide a level playing field, ensure the reliability of electric power, and facilitate new investments. The main roles of the IMO are to oversee the IMO-administered markets and to ensure the reliability of the integrated power system. For businesses to consider whether to become an active market participant the following categories apply: the generating of electric power, the importing or exporting of electric power, managing the amount of electricity used at different times as well as

  16. TRADING FORWARD IN THE BRAZILIAN ELECTRICITY MARKET

    Directory of Open Access Journals (Sweden)

    Paulo Cesar Coutinho

    2013-01-01

    Full Text Available We study the interaction between forward and spot electricity markets in a scenario where buyers and sellers are price takers in the forward market and trade through marketers, who play a Cournot game. Our model’s main features come from the Brazilian electricity market, where a free contract market coexists with a regulated contract market, and the spot price is the output of a stochastic dynamic algorithm. We are able to show that the price of energy bought (sold forward decreases (increases with the number of marketers, and that, as a result, full hedging is achieved in the limit. We also investigate the effects on prices of changes in the number of market participants and in aggregate consumption and supply, an exercise that yields important policy recommendations for the Brazilian regulator.

  17. 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...

  18. 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....

  19. 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)

  20. 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)

  1. 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

  2. Market Model Considering Bilateral Transactions in the Deregulated Electricity Market

    Science.gov (United States)

    Ruiz Monroy, José Joaquín; Kita, Hiroyuki; Tanaka, Eiichi; Hasegawa, Jun

    This paper proposes an algorithm to simulate the transactions that take place in a free market of electricity. The algorithm presented is used for Bilateral Transaction Matrix (BTM) creation assuming that a day ahead load forecast is previously known. Bids can be made by both the generation side and the demand side to determine transaction prices, then the algorithm allocates the transactions according to market rules until the demand is satisfied. This creates feasible BTMs that can be used to study system security and to find future methods to regulate bilateral transactions through market mechanisms like the application of penalties to the transactions that affect the system’s security. Results show that the proposed algorithm is a good option for electricity market analysis. The proposed algorithm provides system planners with a practical tool for data creation to further study the effects of bilateral transactions in a deregulated electricity market.

  3. 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?

  4. An options model for electric power markets

    International Nuclear Information System (INIS)

    Ghosh, Kanchan; Ramesh, V.C.

    1997-01-01

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

  5. Asynchronous decentralized method for interconnected electricity markets

    International Nuclear Information System (INIS)

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

    2008-01-01

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

  6. Electricity market readiness plan : Ontario Energy Board

    International Nuclear Information System (INIS)

    2001-03-01

    This document informs electric power market participants of the Ontario Energy Board's newly developed market readiness plan and target timelines that local distribution companies (LDCs) must meet for retail marketing. The Ontario Energy Board's plan incorporates relevant independent market operator (IMO)-administered market milestones with retail market readiness targeted for September 2001. The market readiness framework involves a self-certification process for LDCs by August 10, 2001, through which the Board will be able to monitor progress and assess the feasibility of meeting the target timelines. For retail market readiness, all LDCs will have to calculate settlement costs, produce unbundled bills, provide standard supply service, change suppliers and accommodate retail transactions. LDCs must be either authorized participants in the IMO-administered market or become retail customers of their host LDC. Unbundled bills will include itemized charges for energy price, transmission, distribution and debt retirement charge. 1 tab., 1 fig

  7. 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.)

  8. Determining market boundaries in the electricity sector

    International Nuclear Information System (INIS)

    Godde, Anne

    2013-01-01

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

  9. THE UK ELECTRICITY MARKET EVOLUTION DURING THE LIBERALIZATION PROCESS

    Directory of Open Access Journals (Sweden)

    Delia Vasilica Rotaru

    2013-07-01

    Full Text Available This paper offers an insight on the liberalization process that took place in the United Kingdom starting with 1990 until now. The electricity market in the United Kingdom made incredible progress in the road to reaching a full level of liberalization where customers are free to choose between suppliers and services. An analysis of the most important indicators for the electricity market evolution such as electricity price, the market share of the largest generator, the energy efficiency indicator shows that the liberalization process brought many advantages starting with 2001. Also, UK has to face new challenges in order to keep the development of the industry on the right path, challenges that are presented in the final part of the paper.

  10. 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

  11. Pricing of electricity tariffs in competitive markets

    International Nuclear Information System (INIS)

    Keppo, J.; Raesaenen, M.

    1999-01-01

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

  12. Environmental policies in competitive electricity markets

    NARCIS (Netherlands)

    Langestraat, R.

    2013-01-01

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

  13. The Economics of Wholesale Electricity Markets

    OpenAIRE

    Müsgens, Felix

    2005-01-01

    This dissertation is based on four articles. Chapter 2 is based on Growitsch and Müsgens (2005). In this chapter, we analyze the development of household electricity prices since the liberalization of the market in 1998. The chapter covers all components of the price, the wholesale component, and the transportation and distribution networks. We also discuss the developments of taxes and subsidies in the electricity market. The main result is that the liberalization appears to have had no sign...

  14. 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...... are such that the separated (integrated) duopoly with wholesale trade performs best (worst) in terms of welfare.Keywords: Electricity, Investments, Generating Capacities, Vertical Integration, Monopoly and Competition.JEL-Classification: D42, D43, D44, L11, L12, L13...

  15. Generation capacity adequacy in interdependent electricity markets

    International Nuclear Information System (INIS)

    Cepeda, Mauricio; Finon, Dominique

    2011-01-01

    This paper deals with the practical problems related to long-term security of supply in regional electricity markets with transmission constraints. Differences between regulatory policies and market designs in terms of generation adequacy policies may distort the normal functioning of the neighboring markets, as well as the reliability of supply. We test the effect of heterogeneous regulatory design between two interdependent markets: energy-only market, price-capped market without capacity mechanisms and price-capped markets with forward capacity contracts obligation. We rely on a long-term market simulation model in system dynamics that characterizes expansion decision in a competitive regime. The results show that differences in market designs affect both price and reliability of supply in the two markets. We examine both the short and long terms effect, and how free-riding may occur where capacity adequacy policies are adopted in one market but not the other. The main finding is that the lack of harmonization between local markets in policies to ensure capacity adequacy may lead to undesirable side effects. - Research highlights: → We model the long-term dynamic of two interdependent markets. → We examine both the short and long terms effect of heterogeneous regulatory design: energy-only market, price-capped market without capacity mechanisms and price-capped markets with forward capacity contracts obligation. → Differences in market designs affect both price and reliability of supply in the two markets. → Lack of harmonization between local markets in policies to ensure capacity adequacy may lead to undesirable side effects. → Free-riding may occur where capacity adequacy policies are adopted in one market but not the other.

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

    International Nuclear Information System (INIS)

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

    2000-01-01

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

  17. Modelling prices in competitive electricity markets

    International Nuclear Information System (INIS)

    Bunn, D.W.

    2004-04-01

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

  18. Price volatility in wind dominant electricity markets

    DEFF Research Database (Denmark)

    Farashbashi-Astaneh, Seyed-Mostafa; Chen, Zhe

    2013-01-01

    High penetration of intermittent renewable energy sources causes price volatility in future electricity markets. This is specially the case in European countries that plan high penetration levels. This highlights the necessity for revising market regulations and mechanisms in accordance...... electricity markets. High price volatility is unappreciated because it imposes high financial risk levels to both electricity consumers and producers. Additionally high price variations impede tracking price signals by consumers in future smart grid and jeopardize implementation of demand response concepts....... The main contribution of this paper is to quantify volatility patterns of electricity price, as penetration level of wind power increases. Results explain a direct relationship between wind penetration and electricity price volatility in a quantitative manner....

  19. Electric utilities strategies in final energy markets

    International Nuclear Information System (INIS)

    Bianchi, A.

    2000-01-01

    In rapidly changing markets, electric utilities pay growing attention to customers and service. They are aware that competition needs strategies capable of transforming and strengthening the privileged position resulting from the knowledge of the market. Moreover, this aspect is the link between different value chains to describe new multi utility approaches [it

  20. Independent regulatory authorities in European electricity markets

    International Nuclear Information System (INIS)

    Larsen, Anders; Pedersen, Lene Holm; Sorensen, Eva Moll; Olsen, Ole Jess

    2006-01-01

    Liberalisation of the electricity market has taken place in most European countries within the last decade. It is considered a precondition of successful liberalisation to establish so-called independent regulatory authorities. In this article, we compare the status and practice of them in 16 European countries, and discuss the relationship between the organisation of the regulation and the market outcome

  1. 2015 electric vehicle market summary and barriers.

    Science.gov (United States)

    2016-06-01

    The object of this research report is to present the current market status of plug-in-electric : vehicles (PEVs) and to predict their future penetration within the world and U.S. markets. The : sales values for 2015 show that China leads in yearly sa...

  2. 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.

  3. Defining electricity markets. An arbitrage cost approach

    International Nuclear Information System (INIS)

    Kleit, A.N.

    2001-01-01

    Market definition is a crucial component of antitrust policy. There is, however, no universally accepted method of carrying out market definition. While several approaches have been presented in the literature, each has its share of drawbacks. This paper suggests that a modeling technique based upon the theory of arbitrage is well suited to answering this question. After the empirical approach is presented, it is used to calculate antitrust market definitions between electricity hubs in the American West

  4. Optimal Charge control of Electric Vehicles in Electricity Markets

    DEFF Research Database (Denmark)

    Lan, Tian; Hu, Junjie; Wu, Guang

    2011-01-01

    Environment constraints, petroleum scarcity, high price on fuel resources and recent advancements in battery technology have led to emergence of Electric Vehicles (EVs). As increasing numbers of EVs enter the electricity market, these extra loads may cause peak load and need to be properly...

  5. Model documentation: Electricity Market Module, Electricity Fuel Dispatch Submodule

    Energy Technology Data Exchange (ETDEWEB)

    1994-04-08

    This report documents the objectives, analytical approach and development of the National Energy Modeling System Electricity Fuel Dispatch Submodule (EFD), a submodule of the Electricity Market Module (EMM). The report catalogues and describes the model assumptions, computational methodology, parameter estimation techniques, model source code, and forecast results generated through the synthesis and scenario development based on these components.

  6. Imperfect competition in the Nordic electricity markets

    International Nuclear Information System (INIS)

    Kromann, M.T.

    2001-01-01

    Imperfect competition in a liberalized Nordic electricity market is simulated in a partial equilibrium model with elaborated demand and supply systems, the latter also including bi-production of district heating. It is found that Cournot competition can facilitate surprisingly large excess profits, even when a competitive fringe is allowed. The results indicate that a widely used concentration measure, the Hirshmann-Herfindahl index, is a poor guide for revealing market power in electricity markets. This is in accordance with the findings of other recent research. (au)

  7. Predicting the Potential Market for Electric Vehicles

    DEFF Research Database (Denmark)

    Jensen, Anders Fjendbo; Cherchi, Elisabetta; Mabit, Stefan Lindhard

    2017-01-01

    Forecasting the potential demand for electric vehicles is a challenging task. Because most studies for new technologies rely on stated preference (SP) data, market share predictions will reflect shares in the SP data and not in the real market. Moreover, typical disaggregate demand models...... a significant market share. We have the advantage of a relatively unique databank where respondents were submitted to the same stated choice experiment before and after experiencing an electric vehicle. Results show that typical choice models forecast a demand that is too restrictive in the long period...

  8. 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

  9. 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

  10. 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)

  11. 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

  12. 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)

  13. French dissatisfactions on the European electricity market

    International Nuclear Information System (INIS)

    Glachant, J.M.

    2007-01-01

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

  14. Integrating Renewables in Electricity Markets

    DEFF Research Database (Denmark)

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

    This addition to the ISOR series addresses the analytics of the operations of electric energy systems with increasing penetration of stochastic renewable production facilities, such as wind- and solar-based generation units. As stochastic renewable production units become ubiquitous throughout...... the variability and unpredictability of stochastic renewable units so that supply security is not at risk. • The trading of the electric energy produced by stochastic renewable producers. • The association of a number of electricity production facilities, stochastic and others, to increase their competitive edge...... electric energy systems, an increasing level of flexible backup provided by non-stochastic units and other system agents is needed if supply security and quality are to be maintained. Within the context above, this book provides up-to-date analytical tools to address challenging operational problems...

  15. 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

  16. Sharing wind power forecasts in electricity markets: A numerical analysis

    International Nuclear Information System (INIS)

    Exizidis, Lazaros; Kazempour, S. Jalal; Pinson, Pierre; Greve, Zacharie de; Vallée, François

    2016-01-01

    Highlights: • Information sharing among different agents can be beneficial for electricity markets. • System cost decreases by sharing wind power forecasts between different agents. • Market power of wind producer may increase by sharing forecasts with market operator. • Extensive out-of-sample analysis is employed to draw reliable conclusions. - Abstract: In an electricity pool with significant share of wind power, all generators including conventional and wind power units are generally scheduled in a day-ahead market based on wind power forecasts. Then, a real-time market is cleared given the updated wind power forecast and fixed day-ahead decisions to adjust power imbalances. This sequential market-clearing process may cope with serious operational challenges such as severe power shortage in real-time due to erroneous wind power forecasts in day-ahead market. To overcome such situations, several solutions can be considered such as adding flexible resources to the system. In this paper, we address another potential solution based on information sharing in which market players share their own wind power forecasts with others in day-ahead market. This solution may improve the functioning of sequential market-clearing process through making more informed day-ahead schedules, which reduces the need for balancing resources in real-time operation. This paper numerically evaluates the potential value of sharing forecasts for the whole system in terms of system cost reduction. Besides, its impact on each market player’s profit is analyzed. The framework of this study is based on a stochastic two-stage market setup and complementarity modeling, which allows us to gain further insights into information sharing impacts.

  17. Design and analysis of electricity markets

    Science.gov (United States)

    Sioshansi, Ramteen Mehr

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

  18. Time-dependent correlations in electricity markets

    International Nuclear Information System (INIS)

    Alvarez-Ramirez, Jose; Escarela-Perez, Rafael

    2010-01-01

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

  19. 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

  20. Electrical connections: Iran's power market

    International Nuclear Information System (INIS)

    Anon

    2000-01-01

    Attention is drawn to business opportunities in Iran, a middle-eastern country that is still in the process of rebuilding its power generating capacity in the wake of its eight-year-long war with Iraq. In reviewing opportunities to tap into this market , the article lists a number of factors that must be considered before rushing to follow the current. One of these factors is the U.S. trade embargo against Iran. Under this embargo Canada does not allow the re-export of goods of U.S. origin from Canada to Iran. The complex character of doing business in Iran by foreign companies must also be considered. Nevertheless,, those who are well prepared to face the restrictions and are willing to take the time to learn about the 'Iranian way' may receive considerable help from the Export Development Corporation, including financing and insurance on a case-by-case basis. The Canadian government's program for export market development also offers direct financial assistance to Canadian exporters in an effort to reduce the risk of entering a foreign market. The Canadian Embassy in Tehran can also provide useful advice and assistance. There is also http://exportsource.gc.ca., Team Canada Inc.'s on-line resource that may be consulted for export information

  1. Modeling long-term dynamics of electricity markets

    International Nuclear Information System (INIS)

    Olsina, Fernando; Garces, Francisco; Haubrich, H.-J.

    2006-01-01

    In the last decade, many countries have restructured their electricity industries by introducing competition in their power generation sectors. Although some restructuring has been regarded as successful, the short experience accumulated with liberalized power markets does not allow making any founded assertion about their long-term behavior. Long-term prices and long-term supply reliability are now center of interest. This concerns firms considering investments in generation capacity and regulatory authorities interested in assuring the long-term supply adequacy and the stability of power markets. In order to gain significant insight into the long-term behavior of liberalized power markets, in this paper, a simulation model based on system dynamics is proposed and the underlying mathematical formulations extensively discussed. Unlike classical market models based on the assumption that market outcomes replicate the results of a centrally made optimization, the approach presented here focuses on replicating the system structure of power markets and the logic of relationships among system components in order to derive its dynamical response. The simulations suggest that there might be serious problems to adjust early enough the generation capacity necessary to maintain stable reserve margins, and consequently, stable long-term price levels. Because of feedback loops embedded in the structure of power markets and the existence of some time lags, the long-term market development might exhibit a quite volatile behavior. By varying some exogenous inputs, a sensitivity analysis is carried out to assess the influence of these factors on the long-run market dynamics

  2. 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

  3. Towards electricity markets accommodating uncertain offers

    DEFF Research Database (Denmark)

    Papakonstantinou, Athanasios; Pinson, Pierre

    2014-01-01

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

  4. Demand response in Indian electricity market

    International Nuclear Information System (INIS)

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

    2012-01-01

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

  5. 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...... simulation and real systems in this area. Each system's particular ontology must import the proposed ontology, thus enabling the effective interoperability between independent systems....

  6. 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 th...... the future actors in the electricity sector and their roles in implementing electricity savings, followed by some proposals for an energy policy....

  7. European internal electricity market. What next?

    International Nuclear Information System (INIS)

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

    2007-01-01

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

  8. Models for electricity market efficiency and bidding strategy analysis

    Science.gov (United States)

    Niu, Hui

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

  9. 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

  10. 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

  11. Market power and technological bias in electricity generation markets

    International Nuclear Information System (INIS)

    Twomey, Paul; Neuhoff, Karsten

    2005-01-01

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

  12. Empowering Customer Choice in Electricity Markets

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2011-07-01

    Timely and effective deployment of demand response could greatly increase power system flexibility, electricity security and market efficiency. Considerable progress has been made in recent years to harness demand response. However, most of this potential remains to be developed. The paper draws from IEA experience to identify barriers to demand response, and possible enablers that can encourage more timely and effective demand response including cost reflective pricing, retail market reform, and improved load control and metering equipment. Governments have a key role to play in developing and implementing the policy, legal, regulatory and market frameworks needed to empower customer choice and accelerate the development and deployment of cost-effective demand response.

  13. Correlations and clustering in wholesale electricity markets

    Science.gov (United States)

    Cui, Tianyu; Caravelli, Francesco; Ududec, Cozmin

    2018-02-01

    We study the structure of locational marginal prices in day-ahead and real-time wholesale electricity markets. In particular, we consider the case of two North American markets and show that the price correlations contain information on the locational structure of the grid. We study various clustering methods and introduce a type of correlation function based on event synchronization for spiky time series, and another based on string correlations of location names provided by the markets. This allows us to reconstruct aspects of the locational structure of the grid.

  14. Competition in decentralized electricity markets: Three papers on electricity auctions

    Science.gov (United States)

    Harbord, David William Cameron

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

  15. 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

  16. 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

  17. 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.

  18. 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.

  19. Load profiles analysis for electricity market

    Directory of Open Access Journals (Sweden)

    Radu Porumb

    2014-04-01

    Full Text Available In the wake of electric power system transition towards smart grids, and the adoption of the electric market schemes, electric utilities are facing the need of a better load profiles understanding for their customers. In this work, some key objectives were addresses, such as definition of the mathematical model for calculating the hourly energy specific, identification of the three target groups for users who have developed consumer profiles, definition of the two types of significant load and assessment of the impact of using consumer profiles on users.

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

    Energy Technology Data Exchange (ETDEWEB)

    2009-07-15

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

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

    Energy Technology Data Exchange (ETDEWEB)

    2009-07-01

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

  2. Market analysis green electricity. Final report

    International Nuclear Information System (INIS)

    Reichmuth, Matthias

    2014-01-01

    In the present study the volume of the German market for green energy will be analyzed for its functionality, barriers and also its development perspectives. Besides an evaluation of actual literature sources, elaborate interviews of electricity suppliers (green energy suppliers) were realized.

  3. Independent regulatory authorities in European electricity market

    DEFF Research Database (Denmark)

    Olsen, Ole Jess; Larsen, Anders; Sørensen, Eva Moll

    2006-01-01

    Liberalisation of the electricity market has taken place in most European countries within the last decade. It is considered a precondition of successful liberalisation to establish so-called independent regulatory authorities. In this article, we compare the status and practice of them in 16...

  4. Economic efficiency of pool coordinated electricity markets

    International Nuclear Information System (INIS)

    Al-Agtash, S.; Renjeng Su

    2004-01-01

    This paper presents economic efficiency evaluation of pool coordinated electricity markets. The evaluation accounts for the overall cost of power generation, network losses and costs, and various operational constraints. We assume a non-collusive oligopolistic competition. An iterative supply function model is used to characterize the competitive behavior of suppliers. A social welfare function is defined for PoolCo market that operates over multiple hours time span. This leads to a mixed-integer non-linear programming problem. An Augmented Lagrangian approach is used to solve iteratively for global optimal operation schedules (i.e. power generation, load, and price for each bus node) while considering constraints of different sorts. An IEEE 24-bus, eight-supplier, 17-customer test system is used for illustration. The results show deflection of electricity prices from the marginal costs of power generation. The results of 2-year (730 round) market simulations show a range of deadweight efficiency loss between 0.5. (author)

  5. New stakes for electric power wholesale markets

    International Nuclear Information System (INIS)

    Durtol, Jeannou; Jourdan, Esther; Musseau, Pierre; Ollivier, Benjamin; Schramm, Christophe

    2014-01-01

    This note proposes an analysis of political as well as economic causes of dysfunctions of electricity wholesale markets in Europe. The authors show that the market model is not adapted any longer to the present situation, and outline that these dysfunctions are due to the economic crisis, to the gas-coal merit order, and also, to some extent, to the development of renewable energies. Then, the authors state that a new equilibrium must be found between public intervention and markets, in a context where stakes related to security of supply, and industrial and land planning policies require specific objectives which cannot be reached only through an energy and CO 2 wholesale market play, but with public intervention. The authors then discuss the role of public authorities regarding the energy mix, and outline the necessity of a better prediction and definition of credible objectives for a better consistence of public policies, and the necessity of a translation of energy policy objectives into actual and flexible instruments. Some propositions are formulated, notably regarding the nuclear sector. In the last part, the authors propose some possible reforms for the electricity market by addressing different issues: long term contracts and short term optimisation of energy markets, and security of supply on the long term

  6. A new index for electricity spot markets

    International Nuclear Information System (INIS)

    Falbo, Paolo; Fattore, Marco; Stefani, Silvana

    2010-01-01

    Different indexes are used in electricity markets worldwide to represent the daily behavior of spot prices. However, the peculiarities of these markets require a careful choice of the index, based on mathematical formulation and its statistical properties. Choosing a bad index may influence the financial policies of market players, since derivative pricing and hedging performance can be deeply affected. In this paper with an initial theoretical analysis, we intend to show that the most widely used indexes (simple arithmetic average and weighted average with current volumes) are poor representatives of the spot market. We will then perform an analysis of the hedging strategy on a derivative instrument (an Asian option) written on a reference index. The resulting simulations, applied to OMEL (Spain) and EEX (Germany), are sufficiently clear cut to suggest that the decision to adopt an index to represent properly a market must be taken very carefully. Finally we will propose a new index (FAST index) and, after comparing it with the previous indexes, will show that both theoretically and practically this index can be taken as a good electricity market synthetic indicator. (author)

  7. Operation, Investment and Hedging in Electricity Markets

    DEFF Research Database (Denmark)

    Ernstsen, Rune Ramsdal

    This thesis consists of an introduction as well as four papers. The papers concern different problems associated to future electricity markets and the topics include risk management, investment strategies, valuation and model calibration. Each paper is presented in a separate chapter and hence...... the chapters are self-contained and may be read individually. A more thorough overview is presented in Chapter 1. In Chapter 2 we consider a hedging problem for a power distributor delivering electricity on fixed price contracts in the Nordic electricity market and thereby being exposed to volume risk. We...... to include price and load correlation which results in an explicit strategy that reduces the variance. To further improve the strategy we include autocorrelation and solve the hedging problem numerically and show that there is a large potential in changing risk measure and utilizing the skewness...

  8. Renewable energy promotion in competitive electricity markets

    International Nuclear Information System (INIS)

    Wohlgemuth, Norbert

    1999-01-01

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

  9. 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

  10. Emissions markets, power markets and market power: A study of the interactions between contemporary emissions markets and deregulated electricity markets

    Science.gov (United States)

    Dormady, Noah Christopher

    Chapter 1: A Monte Carlo Approach. The use of auctions to distribute tradeable property rights to firms in already heavily concentrated markets may further exacerbate the problems of market power that exist within those markets. This chapter provides a model of a two-stage emissions market modeled after a contemporary regional permit trading market in the United States, the Regional Greenhouse Gas Initiative, Inc. (RGGI). It then introduces Oligopsony 1.0, a C# software package constructed in the .NET environment that simulates uniform-price auctions using stochastic Monte Carlo simulation for modeling market power in tradeable property rights auctions. Monte Carlo methods add a probabilistic element to standard auction theoretic equilibria. The results of these simulations indicate that there can be significant non-linearities between profit and market power as exercised through strategic demand reduction. This analysis finds the optimum point of strategic demand reduction that enables the firm to exploit these non-linearities, and it determines the probability distributions of these optima using kernel density analysis. Chapter 2: An Experimental Approach. How will emerging auction-based emissions markets function within the context of today's deregulated auction-based electricity markets? This chapter provides an experimental analysis of a joint energy-emissions market. The impact of market power and collusion among dominant firms is evaluated to determine the extent to which an auction-based tradeable permit market influences performance in an adjacent electricity market. The experimental treatment design controls for a variety of real-world institutional features, including variable demand, permit banking, inter-temporal (multi-round) dynamics, a tightening cap, and resale. Results suggest that the exercise of market power significantly increases electricity auction clearing prices, without significantly increasing emissions auction clearing prices, and in

  11. 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

  12. Risk-minimisation in electricity markets

    DEFF Research Database (Denmark)

    Tegner, Martin; Ernstsen, Rune Ramsdal; Skajaa, Anders

    2017-01-01

    This paper analyses risk management of fixed price, unspecified consumption contracts in energy markets. We model the joint dynamics of the spot-price and the consumption of electricity, study expected loss minimisation for different loss measures, and derive optimal static hedge strategies based...... on forward contracts. The strategies are implemented empirically and compared to a benchmark strategy widely used by the industry. On 2012–2014 Nordic market data, the suggested hedges significantly outperform the benchmark: The realised cumulative profit-and-losses are greater for almost every single one.......5% of the fixed price....

  13. Modelling electricity forward markets by ambit fields

    DEFF Research Database (Denmark)

    Barndorff-Nielsen, Ole; Fred Espen Benth, Fred Espen; Veraart, Almut

    This paper proposes a new modelling framework for electricity forward markets, which is based on ambit fields. The new model can capture many of the stylised facts observed in energy markets. One of the main differences to the traditional models lies in the fact that we do not model the dynamics......, but the forward price directly, where we focus on models which are stationary in time. We give a detailed account on the probabilistic properties of the new model and we discuss martingale conditions and change of measure within the new model class. Also, we derive a model for the spot price which is obtained...... from the forward model through a limiting argument....

  14. Constructing forward price curves in electricity markets

    DEFF Research Database (Denmark)

    Fleten, S.-E.; Lemming, Jørgen Kjærgaard

    2003-01-01

    We present and analyze a method for constructing approximated high-resolution forward price curves in electricity markets. Because a limited number of forward or futures contracts are traded in the market, only a limited picture of the theoretical continuous forward price curve is available...... to the analyst. Our method combines the information contained in observed bid and ask prices with information from the forecasts generated by bottom-up models. As an example, we use information concerning the shape of the seasonal variation from a bottom-up model to improve the forward price curve quoted...

  15. Adjustable consumption participating in the electricity markets

    DEFF Research Database (Denmark)

    Biegel, Benjamin; Hansen, Lars Henrik; Stoustrup, Jakob

    2013-01-01

    We consider a player managing a portfolio of flexible demand-side devices and examine the requirements for such a player to become an active player in the Nordic electricity system. In particular, we examine the regulatory requirements that must be satisfied to perform spot price optimization...... are aggregated and utilized for spot price optimization and to participate in the regulating power market. In this case study we examine in detail the implications of the given regulatory requirements for market participation in the Nordic system and compare this with estimates of the revenue that can...

  16. Constructing forward price curves in electricity markets

    International Nuclear Information System (INIS)

    Fleten, Stein-Erik; Lemming, Jacob

    2003-01-01

    We present and analyze a method for constructing approximated high-resolution forward price curves in electricity markets. Because a limited number of forward or futures contracts are traded in the market, only a limited picture of the theoretical continuous forward price curve is available to the analyst. Our method combines the information contained in observed bid and ask prices with information from the forecasts generated by bottom-up models. As an example, we use information concerning the shape of the seasonal variation from a bottom-up model to improve the forward price curve quoted on the Nordic power exchange

  17. 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

  18. Capacity choices in liberalised electricity markets

    International Nuclear Information System (INIS)

    Castro-Rodriguez, Fidel; Marin, Pedro L.; Siotis, Georges

    2009-01-01

    This paper addresses the issue of investment in electricity generation in the context of a liberalised market. We use the main results derived from a theoretical model where firms invest strategically to simulate the Spanish electricity system with real-world data. Our results indicate that, under reasonable parameter constellations regarding the number of agents, the level of capacity resulting from private decisions falls well short of the social optimum. Last, we show that two regulatory mechanisms that have been used to generate additional incentives for private agents to install capacity (capacity payment and price-adder) are ineffective and/or prohibitively costly. (author)

  19. 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

  20. Flexibility-enabling Contracts in Electricity Markets

    DEFF Research Database (Denmark)

    Boscan, Luis; Poudineh, Rahmatallah

    As the share of intermittent renewable energy increases in the generation mix, power systems are exposed to greater levels of uncertainty and risk, which requires planners, policy and business decision makers to incentivise flexibility, that is: their adaptability to unforeseen variations....... Additionally, along with traditional sources, which already enable flexibility, a number of business models, such as thermostat-based demand response, aggregators and small storage providers, are emerging in electricity markets and expected to constitute important sources of flexibility in future decentralised...... power systems. However, due to presence of high transaction costs, relative to the size of resource, the emerging small resources cannot directly participate in an organised electricity market and/or compete. This paper asks the fundamental question of how should the provision of flexibility, as a multi...

  1. Insuring unit failures in electricity markets

    International Nuclear Information System (INIS)

    Pineda, S.; Conejo, A.J.; Carrion, M.

    2010-01-01

    An electric energy producer participates in futures markets in the hope of hedging the risk of trading in the pool. However, this producer is required to supply the energy associated with all its signed forward contracts even if some of its units are forced out due to unexpected failures. In this case, the producer must purchase some of the energy needed to meet its futures market commitments in the pool, which may result in high losses if the pool prices happen to be higher than the forward contract prices. To mitigate these losses, the producer can take out insurance against the forced outages of its units. Using a stochastic programming model, this paper analyzes the convenience of signing an insurance against unit failure by an electric energy producer and its impact on forward contracting decisions. Results from a realistic case study are provided and analyzed.

  2. Electricity markets. Investment, performance and analysis

    International Nuclear Information System (INIS)

    Murray, B.

    1998-01-01

    The impact of deregulation on the theory and practice of investment appraisal is addressed in this comprehensive treatment of the restructuring of the electricity supply industry. Demonstrating that the classical approach to generation investment appraisal is no longer valid, a new approach is developed using three economic models to represent differing market conditions. Highlighting the impact on the organisation of the utilities and their suppliers, this book offers essential advice for survival in the deregulated environment worldwide. (author)

  3. Gas/electricity convergence: role of marketers

    Energy Technology Data Exchange (ETDEWEB)

    Peterson, K.G. [Powerex Corp., Inc., Youngwood, PA (United States)

    1997-04-01

    The role of marketers in the convergence of the gas and electricity industry was presented. Topics of discussion included types of convergence, such as wholesale price convergence, BTU convergence, energy information systems service convergence, and corporate convergence. Also discussed was a review of technical, economic, political and regulatory barriers to convergence. Implications for customers, regulators and vertically integrated utilities and trade associations were also assessed.

  4. Bulgarian electricity market and the large-scale industrial customers

    International Nuclear Information System (INIS)

    Popov, P.; Kanev, K.; Dyankov, M.; Minkov, N.

    2003-01-01

    The paper focuses on a brief overview of the Bulgarian Electricity Market Design and steps toward its development, as well as on preliminary analyses for market opening and influence of large industrial customers to system and market operation. (author)

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

    International Nuclear Information System (INIS)

    Glachant, J.M.

    2000-01-01

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

  6. 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

  7. The Effect of Divestitures in the German Electricity Market

    NARCIS (Netherlands)

    Weigt, H.; Willems, Bert

    2011-01-01

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

  8. The Effect of Divestitures in the German Electricity Market

    NARCIS (Netherlands)

    Weigt, H.; Willems, Bert

    2011-01-01

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

  9. 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

  10. The creation of a global electricity market

    International Nuclear Information System (INIS)

    DePinto, D.; Anderson, A.

    1998-01-01

    The global embrace of market-based economics has led to significant growth and prosperity resulting in increased needs for electricity. The burgeoning demand for energy has created requirements for capital investment at time when the state-owned energy companies cannot provide it. Governments, busy trying to find ways to manage already inflated debt burdens, have little capacity for funding the capital needed to expand energy production. In these strategic industries, governments are beginning to embrace the principles of free market capitalism and private ownership, recognizing the significant benefits to be realized: reduced national deficits, a more efficient energy sector, access to foreign capital, greater internal capital generation, and more energy to fuel economic growth. This is driving the governments to embrace privatization and is creating a market for the sale of electric utilities. On the other side of this equation are the fast developing global electric companies that are prepared to expand in both developing and developed countries through significant acquisitions of either companies or strategic assets. This scenario is further enhanced as the Independent Power Developers chase projects from Brazil to China and bring competition to the development of new generation. Never before has there been such a movement to the complete transformation of the energy industry. Countries on every continent are exploring how they can reform and restructure the energy sector. The analysis will address: Global transformation sweeping the various regions of the world; Impact on developers and the strategy required for success; Global electric companies and their impact on the transformation process; and Future of the electric power industry: Will it bring the world closer together?

  11. Modeling spot markets for electricity and pricing electricity derivatives

    Science.gov (United States)

    Ning, Yumei

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

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

    International Nuclear Information System (INIS)

    Alary-Grall, L.

    2000-01-01

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

  13. Marketing Green Fertilizers: Insights into Consumer Preferences

    OpenAIRE

    Johannes Dahlin; Verena Halbherr; Peter Kurz; Michael Nelles; Carsten Herbes

    2016-01-01

    In an effort to support the long-term viability of the bioenergy industry through an end market for digestate, we investigated purchasing preferences for fertilizer product features in the home gardening market. We conducted a discrete choice experiment (DCE), presenting 504 respondents with a total of 6048 product attribute choices in a simulated context that replicated the tradeoff decisions made in the real marketplace. We analyzed the choice data using a hierarchical Bayes estimate to gen...

  14. Carbon pricing, nuclear power and electricity markets

    Energy Technology Data Exchange (ETDEWEB)

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

    2012-07-01

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

  15. Carbon pricing, nuclear power and electricity markets

    International Nuclear Information System (INIS)

    Cameron, R.; Keppler, J. H.

    2012-01-01

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

  16. Realistic electricity market simulator for energy and economic studies

    Energy Technology Data Exchange (ETDEWEB)

    Bernal-Agustin, Jose L. [University of Zaragoza, C/Maria de Luna, 3, Zaragoza 50018 (Spain); Contreras, Javier; Conejo, Antonio J. [University of Castilla-La Mancha, Campus Universitario s/n, Ciudad Real 13071 (Spain); Martin-Flores, Raul [Airbus Spain S.L., Paseo John Lennon, Getafe 28906 (Spain)

    2007-01-15

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

  17. Realistic electricity market simulator for energy and economic studies

    International Nuclear Information System (INIS)

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

    2007-01-01

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

  18. Electricity Markets, Smart Grids and Smart Buildings

    Science.gov (United States)

    Falcey, Jonathan M.

    A smart grid is an electricity network that accommodates two-way power flows, and utilizes two-way communications and increased measurement, in order to provide more information to customers and aid in the development of a more efficient electricity market. The current electrical network is outdated and has many shortcomings relating to power flows, inefficient electricity markets, generation/supply balance, a lack of information for the consumer and insufficient consumer interaction with electricity markets. Many of these challenges can be addressed with a smart grid, but there remain significant barriers to the implementation of a smart grid. This paper proposes a novel method for the development of a smart grid utilizing a bottom up approach (starting with smart buildings/campuses) with the goal of providing the framework and infrastructure necessary for a smart grid instead of the more traditional approach (installing many smart meters and hoping a smart grid emerges). This novel approach involves combining deterministic and statistical methods in order to accurately estimate building electricity use down to the device level. It provides model users with a cheaper alternative to energy audits and extensive sensor networks (the current methods of quantifying electrical use at this level) which increases their ability to modify energy consumption and respond to price signals The results of this method are promising, but they are still preliminary. As a result, there is still room for improvement. On days when there were no missing or inaccurate data, this approach has R2 of about 0.84, sometimes as high as 0.94 when compared to measured results. However, there were many days where missing data brought overall accuracy down significantly. In addition, the development and implementation of the calibration process is still underway and some functional additions must be made in order to maximize accuracy. The calibration process must be completed before a reliable

  19. 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...

  20. Essays in the California electricity reserves markets

    Science.gov (United States)

    Metaxoglou, Konstantinos

    This dissertation examines inefficiencies in the California electricity reserves markets. In Chapter 1, I use the information released during the investigation of the state's electricity crisis of 2000 and 2001 by the Federal Energy Regulatory Commission to diagnose allocative inefficiencies. Building upon the work of Wolak (2000), I calculate a lower bound for the sellers' price-cost margins using the inverse elasticities of their residual demand curves. The downward bias in my estimates stems from the fact that I don't account for the hierarchical substitutability of the reserve types. The margins averaged at least 20 percent for the two highest quality types of reserves, regulation and spinning, generating millions of dollars in transfers to a handful of sellers. I provide evidence that the deviations from marginal cost pricing were due to the markets' high concentration and a principal-agent relationship that emerged from their design. In Chapter 2, I document systematic differences between the markets' day- and hour-ahead prices. I use a high-dimensional vector moving average model to estimate the premia and conduct correct inferences. To obtain exact maximum likelihood estimates of the model, I employ the EM algorithm that I develop in Chapter 3. I uncover significant day-ahead premia, which I attribute to market design characteristics too. On the demand side, the market design established a principal-agent relationship between the markets' buyers (principal) and their supervisory authority (agent). The agent had very limited incentives to shift reserve purchases to the lower priced hour-ahead markets. On the supply side, the market design raised substantial entry barriers by precluding purely speculative trading and by introducing a complicated code of conduct that induced uncertainty about which actions were subject to regulatory scrutiny. In Chapter 3, I introduce a state-space representation for vector autoregressive moving average models that enables

  1. Security of supply in Competitive Electricity Markets. Conference proceedings

    International Nuclear Information System (INIS)

    2005-06-01

    A stable and reliable electricity supply is a fundamental factor in our modern economy and many people think that the deregulated market is a threat to this - or at least, they think that there is a need for a new type of regulation. Others believe that the threat to security of supply comes from short sighted politicians rather than from competitive markets. Regulation in order to increase security of supply is a threat to well functioning competitive markets - not the other way around. To give an overview of different regulatory models and to discuss each model's particular pros and cons, ELFORSK (Swedish Electrical Utilities RandD Company) on behalf of the Swedish electricity industry, the national grid company Svenska Kraftnaet and the Regulating Authority has arranged this two-day Conference. This conference once again gathers people from many different parts of the world to exchange ideas and experiences from their respective area of operations. Our belief is that people from the industry, the governments as well as from the academic world will find these two days a useful opportunity to build new relationships and gain new insights into the topics covered. There are three main topics for the Conference: Experiences from Different Markets; The Value of Security of Supply; Ongoing research projects. The members of the Conference Committee are impressed by the quality of the papers presented at this Conference and we believe that this is a source of knowledge that will influence decisions makers in many countries. (11 papers presented at the conference have been indexed separately. Powerpoint presentations have not been indexed but are available from the Market Design homrpage)

  2. 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)

  3. Threshold Forecasting of Electricity Market Clearing Prices in Volatile Electricity Markets

    Science.gov (United States)

    Janjani, Arya

    Forecasting the hourly electricity prices has been a topic of interest since the introduction of deregulation and competition in electricity markets. This thesis introduces the new idea of "threshold forecasting" or "classification" of market prices as a new approach to electricity price prediction, versus point forecasting of prices, where the exact values of future prices are determined. The motivation for this idea is that the accuracy level presented in the literature for point price forecasting methods is usually low and not all market participants need to know the exact values of prices. Support Vector Machines (SVMs) are used as the core classifier in this work, and two alternative classification models are proposed. The classification results are compared with those of other alternative classifiers as well as those obtained using point forecasting methods in the previous literature. These comparisons verify the effectiveness of the proposed models.

  4. Turkey opens electricity markets as demand grows

    Energy Technology Data Exchange (ETDEWEB)

    McKeigue, J.; Da Cunha, A.; Severino, D. [Global Business Reports (United States)

    2009-06-15

    Turkey's growing power market has attracted investors and project developers for over a decade, yet their plans have been dashed by unexpected political or financial crises or, worse, obstructed by a lengthy bureaucratic approval process. Now, with a more transparent retail electricity market, government regulators and investors are bullish on Turkey. Is Turkey ready to turn the power on? This report closely examine Turkey's plans to create a power infrastructure capable of providing the reliable electricity supplies necessary for sustained economic growth. It was compiled with on-the-ground research and extensive interview with key industrial and political figures. Today, hard coal and lignite account for 21% of Turkey's electricity generation and gas-fired plants account for 50%. The Alfin Elbistan-B lignite-fired plant has attracted criticism for its lack of desulfurization units and ash dam facilities that have tarnished the industry's image. A 1,100 MW hard-coal fired plant using supercritical technology is under construction. 9 figs., 1 tab.

  5. Market prices for solar electricity in Ontario

    International Nuclear Information System (INIS)

    Rowlands, I.H.

    2006-01-01

    The Ontario electricity supply is facing considerable challenges while demand is increasing due to a growing population and increased economic growth needs. In response to these challenges, the government of Ontario established the Ontario Power Authority (OPA) in 2004 to ensure adequate, reliable and secure electricity supply and resources in Ontario. The OPA has also engaged in activities to facilitate the diversification of sources of electricity supply by promoting the use of cleaner energy sources and technologies, including alternative energy sources and renewable energy. The purpose of this paper was to advance discussions regarding the contribution that solar PV can make to Ontario's supply mix. In particular, it determined the value of the electricity that would have been produced by a PV system located in Waterloo, Ontario under the following 4 pricing regimes: (1) the conventional small user tariff system currently in place in Ontario, (2) the time-of-use pricing system that is voluntarily available to those who have smart meters installed in their facilities, (3) the spot market, hourly prices, to which some of Ontario's largest electricity users are exposed, and (4) the recently-proposed rate for standard offer contracts for PV systems. The study showed that a solar PV system that produces 3,000 kWh of electricity over the course of a year would generate different revenue amounts, ranging from the smallest amount of approximately $174.00 to $1,260.00, depending on the pricing regime. The pricing regime that reflects real, time-of-day electricity prices appears to be most advantageous to solar PV systems. It was recommended that additional work is needed regarding the other benefits of solar PV, such as avoided capacity/generation needs, avoided transmission and distribution cost and losses, environmental benefits, and job creation. 3 refs., 4 tabs., 8 figs

  6. Investment incentives in the Korean electricity market

    International Nuclear Information System (INIS)

    Park, Jung-Yeon; Ahn, Nam-Sung; Yoon, Yong-Beum; Koh, Kyung-Ho; Bunn, Derek W.

    2007-01-01

    This paper develops a model-based analysis of the effects of various capacity incentive systems on new investment in the Korean electricity market. The restructuring process in Korea allocated power generation to six firms, competing within a wholesale market, albeit strictly on a cost basis. Because of this cost-based pool, capacity payments were also introduced to encourage new investment. However, it is an open question whether the current fixed capacity payment scheme is enough to secure resource adequacy, and consideration is being given to alternative mechanisms such as the use of LOLP. Using a detailed market simulation model, based on system dynamics, we compare these approaches in terms of how they may influence the investors' decisions and thereby determine the system reserve margin. The simulation results suggest that there may be serious problems in staying with the current fixed capacity payments in order to achieve resource adequacy. In contrast, an LOLP-based capacity mechanism may, in the longer term, increase the reserve margin compared with a fixed capacity payment. More generally, this paper indicates how crucial the effective modeling of the investment behavior of the independent power producers is for adequate policy support, even if they only constitute a fringe in a substantially centrally influenced market

  7. Strategies for Charging Electric Vehicles in the Electricity Market

    DEFF Research Database (Denmark)

    Juul, Nina; Pantuso, Giovanni; Iversen, Jan Emil Banning

    2015-01-01

    This paper analyses different charging strategies for a fleet of electric vehicles. Along with increasing the realism of the strategies, the opportunity for acting on the regulating market is also included. We test the value of a vehicle owner that can choose when and how to charge; by presenting...... optimally in response to predicted spot prices, and – in some settings – additional gains from using the up and down regulating prices. Particularly, strategies are chosen from uncontrolled charging through deterministic optimization, to modelling the charging and bidding problem with stochastic programming....... We show that all vehicle owners will benefit from acting more intelligently on the energy market. Furthermore, the high value of the stochastic solution shows that, in case the regulating price differs from the expected, the solution to the deterministic problem becomes infeasible....

  8. Electricity Market Optimization of Heat Pump Portfolio

    DEFF Research Database (Denmark)

    Biegel, Benjamin; Andersen, Palle; Pedersen, Tom S.

    2013-01-01

    , the aggregator is able to place upward and downward regulating bids in the regulating power market based on the consumption flexibility. A simulation is carried out based on data from a Danish domestic heat pump project, historical spot prices, regulating power prices, and spot price predictions. The simulations......We consider a portfolio of domestic heat pumps controlled by an aggregator. The aggregator is able to adjust the consumption of the heat pumps without affecting the comfort in the houses and uses this ability to shift the main consumption to hours with low electricity prices. Further...

  9. Digital Marketing Insights and Opportunities in Kosovo

    OpenAIRE

    MBA. Besfort Ahmeti

    2015-01-01

    In recent decades, we have witnessed an ever increasing concentration of companies towards the consumer. This has come as a result of various factors, of which an important one has been the digital revolution, which has empowered consumers by giving them access to information and access to one another on a global scale. In an attempt by companies to adapt to this customer empowerment in order to achieve a greater profitability by better serving customers, digital marketing was born. Digital m...

  10. U.S. Renewable Electricity Market

    Science.gov (United States)

    The US green energy market is broken up into two main groups: the mandatory markets including state Renewable Portfolio Standards (RPS) and voluntary markets, also referred to as green power markets.  This page delineates this two markets.

  11. 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

  12. Design of reactive power procurement in deregulated electricity market

    African Journals Online (AJOL)

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

  13. Risk management of power supply in open electricity market

    International Nuclear Information System (INIS)

    Rinta-Runsala, E.; Kiviniemi, J.

    1999-12-01

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

  14. Experimental Economics for Teaching the Functioning of Electricity Markets

    Science.gov (United States)

    Guevara-Cedeno, J. Y.; Palma-Behnke, R.; Uribe, R.

    2012-01-01

    In the field of electricity markets, the development of training tools for engineers has been extremely useful. A novel experimental economics approach based on a computational Web platform of an electricity market is proposed here for the practical teaching of electrical engineering students. The approach is designed to diminish the gap that…

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

    International Nuclear Information System (INIS)

    Bunn, Derek W.; Oliveira, Fernando S.

    2005-01-01

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

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

    International Nuclear Information System (INIS)

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

    2015-01-01

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

  17. Motivational factors for educational tourism: marketing insights

    Directory of Open Access Journals (Sweden)

    Harazneh Ibrahim

    2018-03-01

    Full Text Available Intertwined with other structural changes, are policies to increase the number of international students to diversify tourism activities into what is known as educational tourism (edutourism. Of immediate relevance to this article is the implementation of policies and strategies to attract students from all over the world. Unfortunately, these policies are partially implemented opting out important factors, as such this article attempt to conceptualize the motivational factors associated with edu-tourism. Data garnered from foreign students in North Cyprus suggest that cost, quality, environmental, regulatory, cultural, political, safety and social factors are key factors for edu-tourism. The outcome in this study will help policy makers determine the factors that influence the choice of tertiary institutions in North Cyprus associated with a particular geodemographic setup. This will also enable policy makers to create a tailor made persuasive strategies, policies, adverts and messages to increase their market share.

  18. 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.

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

    International Nuclear Information System (INIS)

    Anon

    1999-09-01

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

  20. Competition ambiguities. Electricite de France and the electricity market liberalization

    International Nuclear Information System (INIS)

    Boiteux, M.

    2007-04-01

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

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

    International Nuclear Information System (INIS)

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

    2014-01-01

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

  2. Production inefficiency of electricity markets with hydro generation

    Energy Technology Data Exchange (ETDEWEB)

    Philpott, Andy; Guan, Ziming; Khazaei, Javad; Zakeri, Golbon [Electric Power Optimization Centre (EPOC), Department of Engineering Science, University of Auckland, 70 Symonds Street, Auckland (New Zealand)

    2010-12-15

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

  3. RESTRUCTURED ELECTRICITY MARKETS: Three States' Experiences in Adding Generating Capacity

    National Research Council Canada - National Science Library

    2002-01-01

    ...., restructured electricity markets by shifting from service provided through a regulated monopoly-the local electric utility-to service provided through open competition among the local utility and its competitors...

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. Measuring competitiveness of the EPEX spot market for electricity

    International Nuclear Information System (INIS)

    Graf, Christoph; Wozabal, David

    2013-01-01

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

  16. Simulating GenCo bidding strategies in electricity markets with an agent-based model

    International Nuclear Information System (INIS)

    Botterud, Audun; Thimmapuram, Prakash R.; Yamakado, Malo

    2005-01-01

    In this paper we use an agent-based simulation model, EMCAS, to analyze market power in electricity markets. We focus on the effect of congestion management on the ability of generating companies (GenCos) to raise prices beyond competitive levels. An 11-node test power system is used to compare a market design based on locational marginal pricing with a market design that uses system marginal pricing and congestion management by counter trading. Bidding strategies based on both physical and economic withholding are compared to a base case with production cost bidding. The results show that unilateral market power is exercised under both pricing mechanisms. However, the largest changes in consumer costs and GenCo profits due to strategic bidding occur under the locational marginal pricing scheme. The analysis also illustrates that agent-based modeling can contribute important insights into the complex interactions between the participants in transmission-constrained electricity markets. (Author)

  17. Obstacles to the use of natural gas in electric markets

    International Nuclear Information System (INIS)

    Lynch, M.M.

    1992-01-01

    A brief overview of the New England Electric System (NEES) and its current and planned natural gas fired generation is presented. Some statistics are given that indicate that electric generation is the biggest growth market for natural gas, underscoring the importance of overcoming the obstacles to the use of gas in electric generation markets. What is seen as the major obstacles to gas use in the electric power industry and some ways to overcome these obstacles are reviewed

  18. How the physical electricity markets will work in Ontario

    International Nuclear Information System (INIS)

    Murphy, P.

    1998-01-01

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

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

    International Nuclear Information System (INIS)

    Green, Richard

    2003-01-01

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

  20. Strategies for Charging Electric Vehicles in the Electricity Market

    Directory of Open Access Journals (Sweden)

    Nina Juul

    2015-06-01

    Full Text Available This paper analyses different charging strategies for a fleet of electric vehicles. Along with increasing the realism of the strategies, the opportunity for acting on the regulating market is also included. We test the value of a vehicle owner that can choose when and how to charge; by presenting a model of four alternative charging strategies. We think of them as increasing in sophistication from dumb via delayed to deterministic and stochastic model-based charging. We show that 29% of the total savings from ‘dumb’ are due to delayed charging and that substantial additional gains come charging optimally in response to predicted spot prices, and – in some settings – additional gains from using the up and down regulating prices. Particularly, strategies are chosen from uncontrolled charging through deterministic optimization, to modelling the charging and bidding problem with stochastic programming. We show that all vehicle owners will benefit from acting more intelligently on the energy market. Furthermore, the high value of the stochastic solution shows that, in case the regulating price differs from the expected, the solution to the deterministic problem becomes infeasible.

  1. 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

  2. The opening of natural gas and electricity markets for professional customers. Main lessons learned - December 2006

    International Nuclear Information System (INIS)

    2006-12-01

    This document reports and comments the results of a survey on the knowledge, perceptions and behaviours of professionals regarding the energy market, and more precisely the opening of gas and electricity markets. The objectives were to identify motivations or obstacles perceived by professionals about changing their provider, to get an insight of their global opinion on market opening, and on questions and false ideas about it, to assess the level of knowledge about market opening introduced in July 2004, to identify the related changes for them, and whether they know new providers and modalities to change provider, and to assess their intention in terms of fidelity or change within a 6 month delay

  3. How Engineers Make Markets Organizing Electricity System Decarbonization

    DEFF Research Database (Denmark)

    Jenle, Rasmus Ploug; Pallesen, Trine

    2017-01-01

    Energy system decarbonization by means of wind power integration has recently been pursued through the introduction of a novel retail electricity market. The market, named EcoGrid, has been designed to facilitate short-term price-responsive electricity consumption. By following the market...... construction process undertaken by scientists at the Technical University of Denmark, this article shows how engineers have approached the task by designing markets as technical control systems. It is demonstrated that EcoGrid has been designed by modeling a retail electricity market on three different...... conceptions of control systems as found in the discipline of control systems engineering. By tracing the origins of EcoGrid, this article documents the governing of electricity consumers through what we here call a synthetic market, i.e. a market artifact devised to attain goals. These findings about...

  4. The challenges of the electricity trade in liberalised markets

    International Nuclear Information System (INIS)

    Wanzek, S.

    2001-01-01

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

  5. EIA model documentation: Electricity market module - electricity fuel dispatch

    International Nuclear Information System (INIS)

    1997-01-01

    This report documents the National Energy Modeling System Electricity Fuel Dispatch Submodule (EFD), a submodule of the Electricity Market Module (EMM) as it was used for EIA's Annual Energy Outlook 1997. It replaces previous documentation dated March 1994 and subsequent yearly update revisions. The report catalogues and describes the model assumptions, computational methodology, parameter estimation techniques, model source code, and forecast results generated through the synthesis and scenario development based on these components. This document serves four purposes. First, it is a reference document providing a detailed description of the model for reviewers and potential users of the EFD including energy experts at the Energy Information Administration (EIA), other Federal agencies, state energy agencies, private firms such as utilities and consulting firms, and non-profit groups such as consumer and environmental groups. Second, this report meets the legal requirement of the Energy Information Administration (EIA) to provide adequate documentation in support of its statistical and forecast reports. Third, it facilitates continuity in model development by providing documentation which details model enhancements that were undertaken for AE097 and since the previous documentation. Last, because the major use of the EFD is to develop forecasts, this documentation explains the calculations, major inputs and assumptions which were used to generate the AE097

  6. EIA model documentation: Electricity market module - electricity fuel dispatch

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1997-01-01

    This report documents the National Energy Modeling System Electricity Fuel Dispatch Submodule (EFD), a submodule of the Electricity Market Module (EMM) as it was used for EIA`s Annual Energy Outlook 1997. It replaces previous documentation dated March 1994 and subsequent yearly update revisions. The report catalogues and describes the model assumptions, computational methodology, parameter estimation techniques, model source code, and forecast results generated through the synthesis and scenario development based on these components. This document serves four purposes. First, it is a reference document providing a detailed description of the model for reviewers and potential users of the EFD including energy experts at the Energy Information Administration (EIA), other Federal agencies, state energy agencies, private firms such as utilities and consulting firms, and non-profit groups such as consumer and environmental groups. Second, this report meets the legal requirement of the Energy Information Administration (EIA) to provide adequate documentation in support of its statistical and forecast reports. Third, it facilitates continuity in model development by providing documentation which details model enhancements that were undertaken for AE097 and since the previous documentation. Last, because the major use of the EFD is to develop forecasts, this documentation explains the calculations, major inputs and assumptions which were used to generate the AE097.

  7. 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

  8. 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.

  9. 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)

  10. Applying mathematical finance tools to the competitive Nordic electricity market

    International Nuclear Information System (INIS)

    Vehvilaeinen, I.

    2004-01-01

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

  11. Applying mathematical finance tools to the competitive Nordic electricity market

    Energy Technology Data Exchange (ETDEWEB)

    Vehvilaeinen, I.

    2004-07-01

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

  12. 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.

  13. Renewable Electricity: Insights for the Coming Decade

    Energy Technology Data Exchange (ETDEWEB)

    Stark, Camila [Joint Inst. for Strategic Energy Analysis, Boulder, CO (United States); Pless, Jacquelyn [Joint Inst. for Strategic Energy Analysis, Boulder, CO (United States); Logan, Jeffrey [Joint Inst. for Strategic Energy Analysis, Boulder, CO (United States); Zhou, Ella [Joint Inst. for Strategic Energy Analysis, Boulder, CO (United States); Arent, Douglas J. [Joint Inst. for Strategic Energy Analysis, Boulder, CO (United States)

    2015-02-01

    A sophisticated set of renewable electricity (RE) generation technologies is now commercially available. Globally, RE captured approximately half of all capacity additions since 2011. The cost of RE is already competitive with fossil fuels in some areas around the world, and prices are anticipated to continue to decline over the next decade. RE options, led by wind and solar, are part of a suite of technologies and business solutions that are transforming electricity sectors around the world. Renewable deployment is expected to continue due to: increasingly competitive economics; favorable environmental characteristics such as low water use, and minimal local air pollution and greenhouse gas (GHG) emissions; complementary risk profiles when paired with natural gas generators; strong support from stakeholders. Despite this positive outlook for renewables, the collapse in global oil prices since mid-2014 and continued growth in natural gas supply in the United States--due to the development of low-cost shale gas--raise questions about the potential impacts of fossil fuel prices on RE. Today, oil plays a very minor role in the electricity sectors of most countries, so direct impacts on RE are likely to be minimal (except where natural gas prices are indexed on oil). Natural gas and RE generating options appear to be more serious competitors than oil and renewables. Low gas prices raise the hurdle for RE to be cost competitive. Additionally, although RE emits far less GHG than natural gas, both natural gas and RE offer the benefits of reducing carbon relative to coal and oil (see Section 4.1 for more detail on the GHG intensity of electricity technologies). However, many investors and decision makers are becoming aware of the complementary benefits of pairing natural gas and renewables to minimize risk of unstable fuel prices and maintain the reliability of electricity to the grid.

  14. The Brazilian electric power market: historic and forecasting

    International Nuclear Information System (INIS)

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

    1992-01-01

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

  15. Hourly Electricity Prices in Day-Ahead Markets

    NARCIS (Netherlands)

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

    2007-01-01

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

  16. FORECASTING ELECTRICITY PRICES IN DEREGULATED WHOLESALE SPOT ELECTRICITY MARKET - A REVIEW

    Directory of Open Access Journals (Sweden)

    Girish Godekere Panchakshara Murthy,

    2014-01-01

    Full Text Available In the new framework of competitive electricity markets, all power market participants need accurate price forecasting tools. Electricity price forecasts characterize significant information that can help captive power producer, independent power producer, power generation companies, power distribution companies or open access consumers in careful planning of their bidding strategies for maximizing their profits, benefits and utilities from long term, medium term and short term perspective. Short term spot electricity price forecasting techniques are either inspired from electrical engineering literature (i.e. load forecasting or from economics literature (i.e. game theory models and the time-series econometric models. In this study we investigate the emergence of spot electricity markets with particular emphasis on Indian electricity market which has never been done before and review selected finance and econometrics inspired literature and models for forecasting electricity spot prices in deregulated wholesale spot electricity markets.

  17. Risk and investment management in liberalized electricity markets

    DEFF Research Database (Denmark)

    Lemming, Jacob Kjærgaard

    2005-01-01

    an environment where market participants will face a new set financial of risks comprising elements of competition, physical electricity characteristics and potential political regulatory intervention. On the other side of the market regulators and politicians will face the complex task of designing....... The effect of financial risk on decision making is becoming an increasingly important topic within this eld of electricity economics, due to the significant elements of uncertainty in electricity markets. A primary goal of the thesis is to increase the understanding of how the introduction of competitive...... markets affects the nancial risk related to different decision problems within the areas of risk management and investments in liberalized electricity markets. Focus is on applied microeconomics and analyzes of the interplay between market design parameters and the technical characteristics...

  18. 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 complexity...... (Multi-Agent Simulator of Competitive Electricity Markets), a multi-agent based simulator that models real electricity markets. To reinforce MASCEM with the capability of recreating the elect ricity markets reality in the fullest possible extent, it is crucial to make it able to simulate as many market...... models and player types as possible. This paper presents a new negotiation model implemented in MASCEM based on the negotiation model used in day-ahead market (Elspot) of Nord Pool. This is a key module to study competitive electricity markets, as it presents well defined and distinct characteristics...

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

    International Nuclear Information System (INIS)

    Bunn, D.W.; Martoccia, M.

    2005-01-01

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

  20. Retail competition in electricity markets. Expectations, outcomes and economics

    International Nuclear Information System (INIS)

    Littlechild, Stephen

    2009-01-01

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

  1. Electricity and gas market Observatory - 1. Quarter of 2013

    International Nuclear Information System (INIS)

    2013-03-01

    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. Since 2013, it also covers the wholesale CO 2 market. This Observatory is updated every three months and data are available on CRE web site (www.cre.fr)

  2. Forward contracts in electricity markets: The Australian experience

    International Nuclear Information System (INIS)

    Anderson, Edward J.; Hu, Xinin; Winchester, Donald

    2007-01-01

    Forward contracts play a vital role in all electricity markets, and yet the details of the market for forward contracts are often opaque. In this paper we review the existing literature on forward contracts and explore the contracting process as it operates in Australia. The paper is based on interviews with participants in Australia's National Electricity Market (NEM). The interviews were designed to understand the contracting process and the practice of risk management in the Australian energy-only pool market. This survey reveals some significant gaps between the assumptions made in the academic literature and actual practice in the Australian market place. (author)

  3. Credit risk identification and suggestions of electricity market

    Science.gov (United States)

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

    2018-03-01

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

  4. 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...

  5. 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

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

    Energy Technology Data Exchange (ETDEWEB)

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

    2002-05-03

    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.

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

    International Nuclear Information System (INIS)

    2000-01-01

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

  8. Transforming Economies. The Case of the Norwegian Electricity Market Reform

    International Nuclear Information System (INIS)

    Olsen, Per Ingvar

    2000-01-01

    The topic of this thesis is the shaping of modern economies, represented by a case-study of the Norwegian electricity market reform process. The essential questions raised are: Why are industries and economies organized the way they are? and Why and how do they occasionally experience fairly radical transformations during which we come to see their organizational structures and associated behaviors in entirely different ways? To answer these questions, the author has followed a radical market-making economic reform process through its many projects, processes and rivalries, from its roots in specific historical controversies through its major breakthrough and into a stabilized new economic system. A major argument through out the analysis is that economics as a scientific activity and -community plays a particularly important role in the re-shaping of economic systems. Large scale economic reforms are found to be dependent upon scientific and political powers and legitimacy which results from broad consensus within the relevant scientific communities. In order to make his point, the author presents and discusses various historical economic reform initiatives both within the Norwegian electricity sector, within other sectors of the economy and in other countries. He also presents elements of a broad process of reorientation within economics during the 1970s and follows these new conceptions up to the electricity market reform process in the late 1980s. The analysis tries to explain why Norway became a hotbed for market reform of the technically integrated and institutionally complex and locked-in electricity system, but also fries to extract medium range insights about economic reform processes and to discuss more general implications for other large scale economic reform projects as well as for economic theories about economic change - through a rethinking of some of the basics in economic thought. The thesis is separated into four parts. The first part discusses

  9. Locational marginal prices with SVC in Indian electricity market

    African Journals Online (AJOL)

    user

    2011 MultiCraft Limited. All rights reserved. Locational marginal prices with SVC in Indian electricity market. A. Kumar. 1. *, Punit Kumar. 2. 1*Department of Electrical Engineering, National Institute of Technology Kurukshetra, INDIA. 2 Department of Electrical Engineering, National Institute of Technology Kurukshetra, INDIA.

  10. 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

  11. 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.

  12. Engineering Electricity Markets for a Decarbonized Energy System

    DEFF Research Database (Denmark)

    Jenle, Rasmus Ploug; Pallesen, Trine

    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......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...... artifact devised to attain specified objectives within a specific task environment. It is shown that EcoGrid has been designed by modelling a retail electricity market on three different concepts from control systems engineering. These findings are used as a springboard to discuss the implications...

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

    International Nuclear Information System (INIS)

    Arango, Santiago; Larsen, Erik

    2011-01-01

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

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

    Energy Technology Data Exchange (ETDEWEB)

    Arango, Santiago, E-mail: saarango@unal.edu.c [Institute of Management, University of Lugano, Via Buffi 13, CH-6904 Lugano (Switzerland); Complexity Center CeiBa, Universidad Nacional de Colombia (Colombia); Larsen, Erik, E-mail: saarango@unal.edu.c [Institute of Management, University of Lugano, Via Buffi 13, CH-6904 Lugano (Switzerland)

    2011-05-15

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

  15. Ontario's new electricity market and the future of OPG

    International Nuclear Information System (INIS)

    Howes, H.

    2002-01-01

    The recent measures taken by Ontario Power Generation since 1998 to deregulate the electricity market in the province of Ontario are reviewed. The opening of Ontario's power market in May 2002 will oblige Ontario Power Generation to reduce its market share. The author reviewed the current status of the energy market in Ontario and noted a modest growth in demand. A significant portion of the energy supply is being provided by nuclear, fossil fuels and hydro energy. The challenge facing Ontario Power Generation is to stay competitive in the new deregulated market and to participate in the energy market in the United States. 6 figs

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

    International Nuclear Information System (INIS)

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

    2001-01-01

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

  17. Assessment of emission trading impacts on competitive electricity market price

    DEFF Research Database (Denmark)

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

    2011-01-01

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

  18. Demand response in experimental electricity markets

    Directory of Open Access Journals (Sweden)

    Barreda-Tarrazona, Iván

    2012-03-01

    Full Text Available We study consumers’ behavior in an experimental electricity market. Subjects make decisions concerning the quantity of electric energy they want to consume in three different pricing environments. In the baseline framework, they decide under a system of fixed prices, invariant to consumption schedule as well as to network restrictions. The other two environments correspond to dynamic pricing systems combined with incentives that aim at cutting energy consumption in a number of selected situations characterized by high network congestion. In such situations, in the first environment subjects get a bonus if they reduce their peak consumption below a certain level, while in the second one, consumers are sanctioned for consuming in peak times. From a social welfare perspective, our experimental data confirm that a dynamic system for prices is more efficient than a fixed one. Moreover, a dynamic scheme with sanctions, although less preferred by consumers, is more effective than the one with bonuses in order to reduce peak consumption. Dynamic pricing with bonuses reaches a good balance between efficiency and consumer acceptance.

    Estudiamos el comportamiento de los consumidores en un mercado de electricidad diseñado en el laboratorio. Los sujetos experimentales toman decisiones sobre la cantidad de electricidad que desean consumir en tres contextos diferentes. En el tratamiento base, los consumidores deciden bajo un sistema de precios fijos, en el que el precio es invariable tanto a la franja horaria de consumo como a las restricciones de la red. Los otros dos contextos corresponden a sistemas dinámicos de precios combinados con incentivos cuyo objetivo es la reducción del consumo en algunas situaciones seleccionadas caracterizadas por una alta congestión de la red. En estas situaciones, en el primer contexto, se bonifica la reducción del consumo en la hora punta por debajo de cierto nivel, mientras que en el segundo, los consumidores

  19. A Dynamic Model of the Combined Electricity and Natural Gas Markets

    DEFF Research Database (Denmark)

    Jenkins, Sandra; Annaswamy, Anuradha M.; Hansen, Jacob

    2015-01-01

    With the shale gas revolution, coal retirements, environmental regulations, and increasing renewable energy resources, the interdependency of natural gas and electricity has grown significantly. Interdependency challenges, such as mismatched market schedules and disparate market operations, require...... quantitative modeling in order to garner insights into the effectiveness of various solutions. In this paper, a quantitative model with a dynamic market mechanism is proposed to evaluate the effects of the fuel uncertainty of natural gas-fired power plants on Social Welfare. The results of the model show...

  20. Behavioral aspects of regulation: A discussion on switching and demand response in Turkish electricity market

    International Nuclear Information System (INIS)

    Sirin, Selahattin Murat; Gonul, Mustafa Sinan

    2016-01-01

    Electricity sector has been transformed from state-owned monopolistic utilities to competitive markets with an aim to promote incentives for improving efficiency, reducing costs and increasing service quality to customers. One of the cardinal assumptions of the liberalized and competitive electricity markets is the rational actor, and decision-makers are assumed to make the best decisions that maximize their utility. However, a vast literature on behavioral economics has shown the weakness of economic theory in explaining and predicting individuals’ decision-making behavior. This issue is quite important for competition in electricity markets in which consumers’ preferences have a significant role. Despite its importance, this issue has almost been neglected in Turkey, which has taken major steps in electricity sector restructuring. Therefore, this paper aims to examine switching and demand response behavior in Turkish electricity market by using multiple correspondence and panel data analysis, and findings are discussed in light of the neoclassical and behavioral economics literature. Analyses’ results show that consumers’ switching and demand response behavior is consistent with the neoclassical literature to some extent; however, behavioral factors are also affecting consumers’ decisions. Furthermore, there are systemic problems that hinder effective functioning of the electricity market and restrict competition. - Highlights: • Behavioral economics can provide insights for consumer’ decisions. • Switching and demand response behavior is examined by econometric methods. • Results is consistent with the neoclassical literature to some extent • However, behavioral factors are also affecting consumers’ decisions.

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

    International Nuclear Information System (INIS)

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

    2010-01-01

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

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

    International Nuclear Information System (INIS)

    2006-01-01

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

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

    International Nuclear Information System (INIS)

    2005-01-01

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

  4. The Interval Stability of an Electricity Market Model

    Directory of Open Access Journals (Sweden)

    Weijuan Wang

    2014-01-01

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

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

    International Nuclear Information System (INIS)

    2006-01-01

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

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

    International Nuclear Information System (INIS)

    2006-01-01

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

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

    International Nuclear Information System (INIS)

    2005-01-01

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

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

    International Nuclear Information System (INIS)

    2005-01-01

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

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

    International Nuclear Information System (INIS)

    2005-01-01

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

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

    International Nuclear Information System (INIS)

    Lise, W.; Linderhof, V.

    2004-10-01

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

  11. 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...

  12. Prices and tariffs in a liberalized electricity market

    International Nuclear Information System (INIS)

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

    2000-01-01

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

  13. How Engineers Make Markets Organizing Electricity System Decarbonization

    DEFF Research Database (Denmark)

    Jenle, Rasmus Ploug; Pallesen, Trine

    2017-01-01

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

  14. 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

  15. 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

  16. Bidding in sequential electricity markets: The Nordic case

    DEFF Research Database (Denmark)

    Boomsma, Trine Krogh; Juul, Nina; Fleten, Stein-Erik

    2014-01-01

    For electricity market participants trading in sequential markets with differences in price levels and risk exposure, coordinated bidding is highly relevant. We consider a Nordic power producer who engages in the day-ahead spot market and the near real-time balancing market. In both markets......, clearing prices and dispatched volumes are unknown at the time of bidding. However, in the balancing market, the agent faces an additional risk of not being dispatched. Taking into account the sequential clearing of these markets and the gradual realization of market prices, we formulate the bidding...... problem as a multi-stage stochastic program. We investigate whether higher risk exposure can explain the hesitation, often observed in practice, to bid into the balancing market, even in cases of higher expected price levels. Furthermore, we quantify the gain from coordinated bidding, and by deriving...

  17. Determining market boundaries in the electricity sector; Marktabgrenzung im Stromsektor

    Energy Technology Data Exchange (ETDEWEB)

    Godde, Anne

    2013-07-01

    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.

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

    International Nuclear Information System (INIS)

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

    2012-01-01

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

  19. Reliability risks during the transition to competitive electricity markets

    International Nuclear Information System (INIS)

    Hughes, J.P.

    2005-01-01

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

  20. 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.

  1. 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

  2. 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.

  3. What next after the rejection of Swiss electricity market legislation?

    International Nuclear Information System (INIS)

    Miolo, A.; Rechsteiner, S.

    2002-01-01

    This article discusses the situation in Switzerland after the rejection of new legislation on the liberalisation of the Swiss electricity market (Electricity Market Law, EMG) in a public vote in September 2002. The problems thus posed and the possibilities for further action available to those involved and affected are discussed. The legal situation after the rejection of the EMG is discussed with respect to Swiss regional structures and cantonal regulations. Three possible scenarios are discussed - the status quo, a solution to be provided by the electricity business or a Federal decree. The possibilities open to electricity enterprises for optimisation and the realisation of synergies to increase efficiency and competitiveness are discussed

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

    International Nuclear Information System (INIS)

    Kara, M.

    2006-05-01

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

  5. Sufficient Flexibility and Capacity in Electricity Markets with Renewables: A Review of Innovative Market Mechanisms

    DEFF Research Database (Denmark)

    Sekamane, Jonas Khubute; Katz, Jonas; Skytte, Klaus

    2017-01-01

    This review of the literature collects innovative market mechanisms that tend to get overlooked in the discussion of whether unassisted energy-only markets can ensure sufficient capacity or if capacity remuneration mechanisms are required. The paper complements existing literature reviews...... and pinpoints advantageous research areas relating to the market design of electricity systems with high shares of variable renewable energy...

  6. 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

  7. The French wholesale electricity and natural gas markets. 2008 report

    International Nuclear Information System (INIS)

    2009-12-01

    This second report on the operation of French wholesale electricity and natural gas markets deals with CRE wholesale market surveillance activities. It follows on from the different work undertaken or announced in the first surveillance report and in the proceedings of the CRE deliberation held on the 8 January 2009. It capitalizes on the experience gained in this area since the Law of the 7 December 2006 gave the CRE market surveillance powers. It is also based on feedback from discussions and interaction with the different stakeholders, through the public consultations held by CRE in 2008 and 2009. market surveillance applies to: - electricity and gas, - bilateral transactions, trading on exchanges and cross-border transactions, - all maturities, from short-term markets to long-term contracts, - all French wholesale market counter-parties, whatever nationality they may have, - contracts for physical delivery, as well as to financial products. The Law also allows extensive surveillance of market participants' behaviour, in that the CRE can oversee not only transactions between operators but also their bids and the correspondence between the prices charged and the position of each operator. In order to address these different subjects, the electricity and gas sections of this report are divided into four main chapters dealing with the development of trading, wholesale market price trends, the fundamentals (generation, infrastructures) and, finally, the analysis of electricity transactions and the supply of alternative gas operators. Contents: A - Methodology notice, Introduction, Summary of the report; B - Section 1 - Wholesale electricity markets: The development of the main wholesale market segments, Monitoring of price formation in France in terms of fundamentals and in comparison with the main interconnected European markets, Analysis and transparency of generation, The analysis of transactions; C - Section 2 - Wholesale natural gas markets: The

  8. Two essays on problems of deregulated electricity markets

    Science.gov (United States)

    Perekhodtsev, Dmitri

    Empirical test of models of unilateral and collusive market power in California's electricity market in 2000. The data from California energy crisis of 2000 suggests that the largest departures of observed electricity prices from the estimates of the competitive price occur when demand approaches market capacity. This paper studies models of unilateral and collusive market power applicable to electricity markets. Both suggest a unique mechanism explaining the increase of the price-cost margin with demand. The empirical test of these models provides more evidence for unilateral market power than for behavior suggesting tacit collusion. Economics of hydro generating plants operating in markets for energy and ancillary services. In order to preserve the stability of electricity supply, electric generators have to provide ancillary services in addition to energy production. Hydro generators are believed to be the most efficient source of ancillary services because of their good dynamic flexibility. This paper studies optimal operation decisions for river dams and pumped storage facilities operating in markets for energy and ancillary services as well as the change in the water shadow price in presence of ancillary services markets. The analysis is applied to valuation of the ancillary services provided by hydro resources in the Tennessee Valley Authority. A simulation of ancillary services markets shows that TVA's hydro resources providing ancillary services can allow for substantial savings in total costs of energy provision. Optimal hydro scheduling in markets for energy and ancillary services increases the value of TVA's hydro resources by 9% on average and up to 26% for particular units. As a result of hydro participation in ancillary services markets water shadow prices of river dams drop significantly allowing for tightening hydro constraints in favor of other water uses.

  9. Optional forward contracts for electric power markets

    International Nuclear Information System (INIS)

    Gedra, T.W.

    1994-01-01

    This paper extends the idea of callable forward contracts, which are potentially useful as demand-side (interruptible-load) contracts, to their supply-side analogues. Together, these contracts allow market participants to take advantage of flexibility in generation or consumption to obtain a monetary benefit, while simultaneously removing the risk of market price fluctuations. This paper also considers the effects of strategic behavior on the part of market participants in their contract sales/purchase decisions

  10. Electricity in Central Asia: Market and investment opportunity report

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2007-09-15

    This WEC report examines the vast interdependent electricity systems of the Central Asian states; Kazakhstan, Kyrgyzstan (Kyrgyz Republic), Tajikistan, Turkmenistan, and Uzbekistan. The report outlines the progress of market reform in this region and identifies the potential for investment opportunities.

  11. Liberalization of the Swiss electricity and gas market

    International Nuclear Information System (INIS)

    Cattin, J.

    1999-01-01

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

  12. Information Uncertainty in Electricity Markets: Introducing Probabilistic Offers

    DEFF Research Database (Denmark)

    Papakonstantinou, Athanasios; Pinson, Pierre

    2016-01-01

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

  13. Optimization Under Uncertainty for Management of Renewables in Electricity Markets

    DEFF Research Database (Denmark)

    Zugno, Marco

    -by-price. In a similar setup, the optimal trading (and pricing) problem for a retailer connected to flexible consumers is considered. Finally, market and system operators are challenged by the increasing penetration of renewables, which put stress on markets that were designed to accommodate a generation mix largely......This thesis deals with the development and application of models for decision-making under uncertainty to support the participation of renewables in electricity markets. The output of most renewable sources, e.g., wind, is intermittent and, furthermore, it can only be predicted with a limited...... accuracy. As a result of their non-dispatchable and stochastic nature, the management of renewables poses new challenges as compared to conventional sources of electricity. Focusing in particular on short-term electricity markets, both the trading activities of market participants (producers, retailers...

  14. Value of flexible consumption in the electricity markets

    DEFF Research Database (Denmark)

    Biegel, Benjamin; Hansen, Lars Henrik; Stoustrup, Jakob

    2014-01-01

    A transition from an oil and coal based energy system to a systems based on renewable and sustainable energy sources has begun in many countries throughout the developed world. As a pioneer, Denmark currently has a wind energy penetration of 30% in the electricity sector and an end goal of 100...... these markets; further, we briefly describe the debated and planned changes in the electricity market to better accommodate flexible consumers. Based on recent market data, we estimate the revenue that flexible consumers can generate by market entry depending on the capacity of the consumers. The results show......% renewables in all energy sectors by 2050. The main elements in this transition are an increase in the wind energy production and electrification of main energy sectors such as transport and heating. Activation of flexible consumption in the electricity markets is believed to be one of the means to compensate...

  15. Impact of electricity market deregulation on information systems

    International Nuclear Information System (INIS)

    Pharabod, E.; Berrier, M.

    2005-01-01

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

  16. Transmission-constrained oligopoly in the Japanese electricity market

    International Nuclear Information System (INIS)

    Tanaka, Makoto

    2009-01-01

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

  17. On Monte Carlo Simulation and Analysis of Electricity Markets

    International Nuclear Information System (INIS)

    Amelin, Mikael

    2004-07-01

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

  18. Empirical observations of bidding patterns in Australia's National Electricity Market

    International Nuclear Information System (INIS)

    Xinmin Hu; Grozev, G.; Batten, D.

    2005-01-01

    For more than a decade, electricity industries have been undergoing reform worldwide. However, there are various, sometimes contradictory, conclusions about the performance of these restructured electricity markets. Market performance depends largely on how each market participant responds to the market design - including market rules, market operational procedures, and information revelation. In this paper, we identify and examine the strategies adopted by generators in Australia's National Electricity Market, based on publicly available data for the period from May 1, 2002 to May 31, 2003. We try to understand and answer some basic questions like how generators respond collectively or individually to changes in market conditions (e.g. load changes) and why they behave in this way. The statistics calculated from the data show that wide variations in the frequency of strategic bidding and rebidding exist; that generators more frequently use capacity offers as a strategic tool than price offers; that large generating units are more likely to use capacity strategies to control market prices; and that generators are capable of responding to changes in market conditions. (author)

  19. Empirical observations of bidding patterns in Australia's National Electricity Market

    International Nuclear Information System (INIS)

    Hu Xinmin; Grozev, George; Batten, David

    2005-01-01

    For more than a decade, electricity industries have been undergoing reform worldwide. However, there are various, sometimes contradictory, conclusions about the performance of these restructured electricity markets. Market performance depends largely on how each market participant responds to the market design -- including market rules, market operational procedures, and information revelation. In this paper, we identify and examine the strategies adopted by generators in Australia's National Electricity Market, based on publicly available data for the period from May 1, 2002 to May 31, 2003. We try to understand and answer some basic questions like how generators respond collectively or individually to changes in market conditions (e.g. load changes) and why they behave in this way. The statistics calculated from the data show that wide variations in the frequency of strategic bidding and rebidding exist; that generators more frequently use capacity offers as a strategic tool than price offers; that large generating units are more likely to use capacity strategies to control market prices; and that generators are capable of responding to changes in market conditions

  20. Why has the Nordic electricity market worked so well

    International Nuclear Information System (INIS)

    Bergman, Lars

    2005-06-01

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

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

    International Nuclear Information System (INIS)

    Chikeung Woo; Lloyd, Debra; Tishler, Asher

    2003-01-01

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

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

    Directory of Open Access Journals (Sweden)

    Zhanhui Lu

    2014-01-01

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

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

    International Nuclear Information System (INIS)

    Haas, R.; Auer, H.

    2006-01-01

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

  4. Electricity and gas market Observatory - 4. Quarter of 2010

    International Nuclear Information System (INIS)

    2010-12-01

    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)

  5. Electricity and gas market Observatory - 4. Quarter of 2012

    International Nuclear Information System (INIS)

    2012-12-01

    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)

  6. Electricity and gas market Observatory - 3. Quarter of 2011

    International Nuclear Information System (INIS)

    2011-09-01

    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)

  7. Electricity and gas market Observatory - 2. Quarter of 2012

    International Nuclear Information System (INIS)

    2012-06-01

    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)

  8. Electricity and gas market Observatory - 4. Quarter of 2011

    International Nuclear Information System (INIS)

    2011-12-01

    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)

  9. Electricity and gas market Observatory - 1. Quarter of 2012

    International Nuclear Information System (INIS)

    2012-03-01

    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)

  10. Electricity and gas market Observatory - 1. Quarter of 2011

    International Nuclear Information System (INIS)

    2011-03-01

    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)

  11. Electricity and gas market Observatory - 3. Quarter of 2012

    International Nuclear Information System (INIS)

    2012-09-01

    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)

  12. Electricity and gas market Observatory - 2. Quarter of 2011

    International Nuclear Information System (INIS)

    2011-06-01

    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)

  13. Sharing wind power forecasts in electricity markets: A numerical analysis

    DEFF Research Database (Denmark)

    Exizidis, Lazaros; Pinson, Pierre; Kazempour, Jalal

    2016-01-01

    In an electricity pool with significant share of wind power, all generators including conventional and wind power units are generally scheduled in a day-ahead market based on wind power forecasts. Then, a real-time market is cleared given the updated wind power forecast and fixed day-ahead decisi...

  14. Power marketers can serve the evolving electric utility industry

    Energy Technology Data Exchange (ETDEWEB)

    Rice, K.D.

    1996-06-01

    Power marketing has been around for a long time in one form or another, yet many traditional electric power industry participants argue that all a power marketer can do is to bring chaos to the market, and with that, a loss of control of the system and a future of unreliable electric service. However, electric power marketers not only can provide a wide range of new products and services, but they are also essential to the development of a more competitive and efficient industry. The paper defines the role of the power marketer. As one has seen in the telecommunications and natural gas industries, the framework of the industry will dramatically change; but, with that change will emerge a number of new competitors, each developing their own niches to create value and service for existing and future players in the marketplace. Power marketers will play a significant role in shaping the electric power industry of the future -- aggressively pursuing these opportunities and creating value through risk intermediation, marketing expertise, and application of new ways of thinking. In the end, one will see a more flexible, efficient, and reliable marketplace in which the driving forces will be competition and market forces rather than the regulatory forces of command and control.

  15. Electricity market clearing with improved dispatch of stochastic production

    DEFF Research Database (Denmark)

    Morales González, Juan Miguel; Zugno, Marco; Pineda, Salvador

    2014-01-01

    In this paper, we consider an electricity market that consists of a day-ahead and a balancing settlement, and includes a number of stochastic producers. We first introduce two reference procedures for scheduling and pricing energy in the day-ahead market: on the one hand, a conventional network...

  16. Generation Capacity Investments in Electricity Markets : Perfect Competition

    NARCIS (Netherlands)

    Gürkan, G.; Ozdemir, O.; Smeers, Y.

    2013-01-01

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

  17. 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

  18. 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

  19. The consumers' role in a de-regulated electricity market

    International Nuclear Information System (INIS)

    Bye, Torstein; Doehl, Oeystein; Halvorsen, Bente; Larsen, Bodil M.; Larsson, Jan; Nesbakken, Runa

    2001-01-01

    The electricity market is market characterized by large price variations. This may have many causes, such as large variation of demand, large differences in the operating costs of the utilities or large variation in precipitation. Price variations caused by the supply side of the market may be counterbalanced by reducing consumption when the price is high, for example by using other energy sources, or by increasing consumption when the price is low

  20. Analysis Insights: Energy Storage - Possibilities for Expanding Electric Grid Flexibility

    Energy Technology Data Exchange (ETDEWEB)

    2016-02-01

    NREL Analysis Insights mines our body of analysis work to synthesize topical insights and key findings. In this issue, we explore energy storage and the role it is playing and could potentially play in increasing grid flexibility and renewable energy integration. We explore energy storage as one building block for a more flexible power system, policy and R and D as drivers of energy storage deployment, methods for valuing energy storage in grid applications, ways that energy storage supports renewable integration, and emerging opportunities for energy storage in the electric grid.

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

    International Nuclear Information System (INIS)

    Vilim, Michael; Botterud, Audun

    2014-01-01

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

  2. The EU's major electricity and gas utilities since market liberalization

    International Nuclear Information System (INIS)

    Schuelke, Christian

    2011-06-01

    A major change has taken place in the company structure of the European electricity and gas markets. Twenty years ago, national or regional monopolies dominated the markets and there was strictly no competition between utilities. But since the liberalization of EU energy markets began in the 1990's, companies like E.ON, GDF Suez, EDF, Enel, and RWE have become European giants with activities in a large number of Member States. The advocates of market liberalization did not expect, or even intend, the emergence of a small number of large utilities that control an increasing part of the EU market. Some observers already claim that liberalization has led to an oligopoly with detrimental consequences for competition. Based on extensive background research, this book presents a fact-based analysis of the changes in the European utility sector since the 1990's. Case studies of the seven largest utilities illustrate how companies adapted their strategies to the changing market environment. The author underlines diverging choices and common trends like geographic expansion into new markets via mergers and acquisitions or diversification of business activities with the aim of using synergies between electricity and gas. Contents: Executive Summary. Introduction. Seven Case Studies of Changing Strategies of Major European Energy Utilities since Market Liberalization (E.ON, GDF Suez, EDF, Enel, RWE, Iberdrola, Vattenfall, Other European Utilities). Overview of Major National and Regional Electricity and Gas Market in the EU (Germany, France, United Kingdom, Italy, Spain, Nordic, Belgium and the Netherlands, Central and Eastern Europe). Conclusions. Annex. Bibliography

  3. Essays on the integration of renewables in electricity markets

    International Nuclear Information System (INIS)

    Knaut, Andreas

    2017-01-01

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

  4. Monthly bulletin of electric power market - July 1988

    International Nuclear Information System (INIS)

    1988-01-01

    This bulletin deals with the brazilian electric power consumption in July 1988, containing data about the total consumption, the growth rates, the special tariffs and monthly evolution in each brazilian region. The economic indexes of industrial production, the market and the prices of electric power and petroleum products are also presented. (C.G.C.)

  5. Monthly bulletin of electric power market - October 1988

    International Nuclear Information System (INIS)

    1988-01-01

    This bulletin deals with the brazilian electric power consumption in October 1988, containing data about the total consumption, the growth rates, the special tariffs and monthly evolution in each brazilian region. The economic indexes of industrial production, the market and the prices of electric power and petroleum products are also presented. (C.G.C.)

  6. Monthly bulletin of electric power market - September 1988

    International Nuclear Information System (INIS)

    1988-01-01

    This bulletin deals with the brazilian electric power consumption in September 1988, containing data about the total consumption, the growth rates, the special tariffs and monthly evolution in each brazilian region. The economic indexes of industrial production, the market and the prices of electric power and petroleum products are also presented. (C.G.C.)

  7. Monthly bulletin of electric power market - November 1988

    International Nuclear Information System (INIS)

    1988-01-01

    This bulletin deals with the brazilian electric power consumption in November 1988, containing data about the total consumption, the growth rates, the special tariffs and monthly evolution in each brazilian region. The economic indexes of industrial production, the market and the prices of electric power and petroleum products are also presented. (C.G.C.)

  8. Monthly bulletin of electric power market - December 1988

    International Nuclear Information System (INIS)

    1988-01-01

    This bulletin deals with the brazilian electric power consumption in December 1988, containing data about the total consumption, the growth rates, the special tariffs and monthly evolution in each brazilian region. The economic indexes of industrial production, the market and the prices of electric power and petroleum products are also presented. (C.G.C.)

  9. The electricity markets around the Baltic Sea; Elmarknaderna runt Oestersjoen

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1995-12-01

    A thorough description of the electric power markets in the countries surrounding the Baltic sea is given in this book. Environmental problems and regulations and nuclear power are surveyed. Factors that may affect an expanded trade of electricity between the countries are analyzed

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

    Science.gov (United States)

    Hoffmann, W.; Waldmann, L.

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

  11. Economic market design and planning for electric power systems

    CERN Document Server

    Mili, Lamine

    2010-01-01

    Discover cutting-edge developments in electric power systems. Stemming from cutting-edge research and education activities in the field of electric power systems, this book brings together the knowledge of a panel of experts in economics, the social sciences, and electric power systems. In ten concise and comprehensible chapters, the book provides unprecedented coverage of the operation, control, planning, and design of electric power systems. It also discusses:. A framework for interdisciplinary research and education;. Modeling electricity markets;. Alternative economic criteria and proactiv.

  12. Agent-based simulation of electricity markets. A literature review

    Energy Technology Data Exchange (ETDEWEB)

    Sensfuss, F.; Ragwitz, M. [Fraunhofer-Institut fuer Systemtechnik und Innovationsforschung (ISI), Karlsruhe (Germany); Genoese, M.; Moest, D. [Karlsruhe Univ. (T.H.) (Germany). Inst. fuer Industriebetriebslehre und Industrielle Produktion

    2007-07-01

    Liberalisation, climate policy and promotion of renewable energy are challenges to players of the electricity sector in many countries. Policy makers have to con-sider issues like market power, bounded rationality of players and the appear-ance of fluctuating energy sources in order to provide adequate legislation. Fur-thermore the interactions between markets and environmental policy instru-ments become an issue of increasing importance. A promising approach for the scientific analysis of these developments is the field of agent-based simulation. The goal of this article is to provide an overview of the current work applying this methodology to the analysis of electricity markets. (orig.)

  13. 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

  14. 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

  15. Oligopolistic concurrence and investment: application to electricity markets

    International Nuclear Information System (INIS)

    Meunier, G.

    2008-12-01

    This research aims at analysing investment strategies of firms which are in an oligopolistic situation. After a brief description of the physical characteristics of an electric system, the author describes the reforms and defines the problematic of an investment in electricity production within markets in imperfect concurrence. In a first part, the author analyses the heterogeneity (either exogenous or endogenous) and technology choices of oligopolistic firms. In case of an exogenous heterogeneity, he studies the impact of the number of firms on investment decisions. In the second part, the author examines the regulations introduced in industries in imperfect concurrence: electricity production by a public firm and interaction between emission allowance market and investment

  16. Electric retail market options: The customer perspective

    Energy Technology Data Exchange (ETDEWEB)

    Hadley, S.W.; Hillsman, E.L.

    1995-07-01

    This report describes various options that are now available for retail electric customers, or that may become available during the next few years as the electric utility industry restructures. These options include different ways of meeting demand for energy services, different providers of service or points of contact with providers, and different pricing structures for purchased services. Purpose of this document is to examine these options from the customer`s perspective: how might being a retail electric customer in 5--10 years differ from now? Seizing opportunities to reduce cost of electric service is likely to entail working with different service providers; thus, transaction costs are involved. Some of the options considered are speculative. Some transitional options include relocation, customer-built/operated transmission lines, municipalization, self-generation, and long-term contracts with suppliers. All these may change or diminish in a restructured industry. Brokers seem likely to become more common unless restructuring takes the form of mandatory poolcos (wholesale). Some options appear robust, ie, they are likely to become more common regardless of how restructuring is accomplished: increased competition among energy carriers (gas vs electric), real-time pricing, etc. This report identified some of the qualitative differences among the various options. For customers using large amounts of electricity, different alternatives are likely to affect greatly service price, transaction costs, tailoring service to customer preferences, and risks for customer. For retail customers using small amounts of electricity, there may be little difference among the options except service price.

  17. 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)

  18. Retailers' risk management and vertical arrangements in electricity markets

    International Nuclear Information System (INIS)

    Boroumand, Raphaël Homayoun; Zachmann, Georg

    2012-01-01

    The failure of the asset-light retailer's organizational model is indicative of the incapacity of this organizational structure to manage efficiently the combination of sourcing and market risks in the current market environment. Because of the structural dimensions of electricity's market risks, a retailer's level of risk exposure is unknown ex ante and will only be revealed ex post when consumption is known. In contrast to the “textbook model” of electricity reforms, the paper demonstrates through numerical simulations that in the current market context pure portfolios of contracts are incomplete risk management instruments compared to physical hedging. The latter is critical to overcome the asset-light retailer's curse. - Highlights: ► The paper analyses the risks faced by electricity retailers. ► We study the limits of contractual hedging. ► Through numerical simulations, we compare the risk profiles of different portfolios of hedging. ► We demonstrate the superior efficiency of physical hedging.

  19. Metalearning to support competitive electricity market players' strategic bidding

    DEFF Research Database (Denmark)

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

    2016-01-01

    Electricity markets are becoming more competitive, to some extent due to the increasing number of players that have moved from other sectors to the power industry. This is essentially resulting from incentives provided to distributed generation. Relevant changes in this domain are still occurring...... a dynamic artificial neural network to create its own output, taking advantage on several learning algorithms already implemented in ALBidS (Adaptive Learning strategic Bidding System). The proposed metalearner considers different weights for each strategy, based on their individual performance....... The metalearner's performance is analysed in scenarios based on real electricity markets data using MASCEM (Multi-Agent Simulator for Competitive Electricity Markets). Results show that the proposed metalearner is able to provide higher profits to market players when compared to other current methodologies...

  20. A novel approach for modeling deregulated electricity markets

    International Nuclear Information System (INIS)

    Rubin, Ofir D.; Babcock, Bruce A.

    2011-01-01

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

  1. Price-elastic demand in deregulated electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Siddiqui, Afzal S.

    2003-05-01

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

  2. Operation of Modern Distribution Power Systems in Competitive Electricity Markets

    DEFF Research Database (Denmark)

    Hu, Weihao

    , DG units, loads and electricity price are studied. Further, the effect of energy storage systems will be considered, and an optimal operation strategy for energy storage devices in a large scale wind power system in the electricity market is proposed. The western Danish power system, which has large...... strategy for trading wind power in the Danish short-term electricity market in order to minimize the imbalance costs for regulation. A load optimization method based on spot price for demand side management in Denmark is proposed in order to save the energy costs for 3 types of typical Danish consumers....../discharging strategies on the spot market price and the interaction between the electricity price and the system demand are presented and discussed....

  3. The European electricity market. What are the effects of market power on prices and the environment? Keywords: Electricity market; liberalisation; market power; game theory; environmental impacts; Northwestern Europe

    International Nuclear Information System (INIS)

    Lise, W.

    2005-07-01

    This paper presents a static computational game theoretic COMPETES model. This model is used to study the economic and environmental effects of the liberalisation of the European electricity market. The COMPETES model takes strategic interaction into account. The model is calibrated to four European countries: Belgium, France, Germany and the Netherlands. To analyse the impact of emission trading, a fixed permit price per tonne CO2 emissions is introduced. The effects are studied under different market structures depending on the ability of firms to exercise market power. The results indicate that the effects of liberalisation depend on the resulting market structure, while a reduction in market power of large producers may be beneficial for the consumer (i.e. lower prices), this is not necessarily true for the environment (i.e. lower reduction in CO2 emissions)

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

    International Nuclear Information System (INIS)

    Chang, Y.

    2007-01-01

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

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

    International Nuclear Information System (INIS)

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

    2014-01-01

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

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

    International Nuclear Information System (INIS)

    2002-04-01

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

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

    International Nuclear Information System (INIS)

    Chang Youngho

    2007-01-01

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

  8. 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

  9. Electricity markets volatility: estimates, regularities and risk management applications

    International Nuclear Information System (INIS)

    Nakamura, Masao; Nakashima, Tomoaki; Niimura, Takahide

    2006-01-01

    The recent deregulation of the market for electric power in many parts of the US and Canada has expanded the set of potential tools for managing the types of risks faced by both generators and consumers of electric power. In particular manufacturing and other firms whose operations are powered by electricity now face, on a continuing basis, the engineering management decisions concerning whether they should buy or produce electricity, and if they are to buy or sell electricity, what types of contracts are optimum. These types of risk management decisions typically involve futures, forwards, options and other financial derivatives. The price and volatility of electric power are known to play an essential role in determining which of these instruments should be used. However, electricity as a commodity possesses certain special features not shared by other commodities and hence its risk properties are not yet well understood. In this paper we consider and test certain hypotheses about the properties of electricity price using recent market data. We find that electricity prices possess certain volatility and other systematic properties that can be characterized by the type and method of delivery of electricity. These properties can be used by firms in formulating their optimal demand and supply schedules of electric power

  10. U.S. Electricity Grid & Markets

    Science.gov (United States)

    Renewable Energy Certificates (RECs), are tradable, non-tangible energy commodities in the United States that represent proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource.

  11. 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)

  12. Capacity investment and competition in decentralized electricity markets

    Energy Technology Data Exchange (ETDEWEB)

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

    1997-11-01

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

  13. Renewable energy sources offering flexibility through electricity markets

    DEFF Research Database (Denmark)

    Soares, Tiago

    in the day-ahead market and to correct for potential energy imbalances in the intraday market and ultimately in the balancing market. However, the design and rules of electricity markets do not support the transition from conventional generation to renewable energy sources as recently sought by many...... (generators and consumers) promoting equity, fairness, impartiality and equality. The hybrid methodology combines different costs (fixed, network usage/congestion and losses) covering all the gaps of each conventional cost allocation method.......All over the world, penetration of renewable energy sources in power systems has been increasing, creating new challenges in electricity markets and for operation and management of power systems, since power production from these resources is by nature uncertain and variable. New methods and tools...

  14. Efficient integration of renewable energies in the German electricity market

    International Nuclear Information System (INIS)

    Nabe, C.A.

    2006-01-01

    Liberalisation of the electricity sector aims to carry out coordination tasks within the system by markets and market prices. This study examines how markets need to be designed to carry out coordination tasks caused by integration of renewable energies in an efficient way. This question is applied to the German electricity system and recommendations are derived from identified deficits. The examination uses the structure-conduct-performance approach of industrial organisation economics. Integration of renewable energies does not result in entirely new coordination tasks but complicates those that exist in any electricity supply system. Within the short-term coordination tasks provision and operation of reserve capacity is affected by renewable energies. Long-term coordination means that the relation between fixed and variable costs of generators as well as generator flexibility has to be adjusted to the characteristics of renewable energies. The relevant short-term coordination task with the network is congestion management. In the long run costs of grid expansion and permanent congestion management have to be balanced. For the execution of short-run coordination tasks integrated and centralised market architectures are superior to decentralised architectures. The increase of short-term coordination tasks due to renewable energies caused by inflexibilities of consumers and conventional generators results in more information that has to be considered. By centralising that information in one market, an increase in productive efficiency can be obtained. In Germany the increased coordination tasks are determined by the integration of wind generators into the electricity system. The present German market architecture results in inefficiencies in short-term coordination. This is demonstrated by an analysis of procedural rules and prices of the ancillary service markets. They demonstrate that market performance is low and significant deviations from competitive prices

  15. Competitiveness of nuclear power in Japanese liberalized electricity market

    International Nuclear Information System (INIS)

    Abe, Y.

    2006-01-01

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

  16. Gas-Electricity Convergence and foreclosure market

    International Nuclear Information System (INIS)

    Barquin Gil, J.

    2007-01-01

    Gas-electricity convergence is a relatively recent industrial trend. It can significantly increase energy sector efficiency. However, it also raises the possibility on anti-competitive behaviours. One of these problems is the so-called input foreclosure. It happens when a natural gas dominant firm restricts its access to its electricity sector competitors. This paper intends to briefly introduce the issue, with special focus in aspects relevant for the Spanish case. (Author)

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

    International Nuclear Information System (INIS)

    Ahn, Nam Sung; Huh, Sung Chul

    2001-01-01

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

  18. Deregulation of Electricity Market and Drivers of Demand for Electrical Energy in Industry

    Directory of Open Access Journals (Sweden)

    Bojnec Štefan

    2016-09-01

    Full Text Available This paper investigates deregulation of electricity market focusing on electricity prices and drivers of demand for electrical energy in industry in Slovenia. The patterns in evolution of real electricity price developments and the three main components of the electricity price are calculated: liberalized market share for purchased electricity price, regulated infrastructure share for use of electricity network grids and mandatory state charges in the sale of electricity (duty, excise duty and value-added tax. To calculate the real value of electricity prices, producer price index of industrial commodities for electricity prices in industry is used as deflator and implicit deflator of gross domestic product for the size of the economy. In the empirical econometric part is used regression analysis for the amount electricity consumption in the industry depending on the real gross domestic product, direct and cross-price elasticity for natural gas prices in the industry. The results confirmed volatility in real electricity price developments with their increasing tendency and the increasing share of different taxes and state charges in the electricity prices for industry. Demand for electrical energy in industry is positively associated with gross domestic product and price of natural gas as substitute for electrical energy in industry use, and negatively associated with prices of electrical energy for industry.

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

    Directory of Open Access Journals (Sweden)

    Maria Đogić

    2017-01-01

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

  20. Nuclear Power Plants in a Competitive Electricity Market

    International Nuclear Information System (INIS)

    Jankauskas, V.

    2002-01-01

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

  1. Economic impact assessment and operational decision making in emission and transmission constrained electricity markets

    International Nuclear Information System (INIS)

    Nanduri, Vishnu; Kazemzadeh, Narges

    2012-01-01

    Highlights: ► We develop a bilevel game-theoretic model for allowance and electricity markets. ► We solve the model using a reinforcement learning algorithm. ► Model accounts for transmission constraints, cap-and-trade constraints. ► Study demonstrated on 9-bus electric power network. ► Obtain insights about supply shares, impact of transmission constraints, and cost pass through. -- Abstract: Carbon constrained electricity markets are a reality in 10 northeastern states and California in the US, as well as the European Union. Close to a Billion US Dollars have been spent by entities (mainly generators) in the Regional Greenhouse Gas Initiative in procuring CO 2 allowances to meet binding emissions restrictions. In the near future, there are expected to be significant impacts due to the cap-and-trade program, especially when the cap stringency increases. In this research we develop a bilevel, complete-information, matrix game-theoretic model to assess the economic impact and make operational decisions in carbon-constrained restructured electricity markets. Our model is solved using a reinforcement learning approach, which takes into account the learning and adaptive nature of market participants. Our model also accounts for all the power systems constraints via a DC-OPF problem. We demonstrate the working of the model and compute various economic impact indicators such as supply shares, cost pass-through, social welfare, profits, allowance prices, and electricity prices. Results from a 9-bus power network are presented.

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

    International Nuclear Information System (INIS)

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

    2008-01-01

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

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

    Energy Technology Data Exchange (ETDEWEB)

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

    2008-04-15

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

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

    DEFF Research Database (Denmark)

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

    2011-01-01

    represent the future of electricity markets in some ways, is chosen as the studied power system in this paper. The impact of the optimal operation strategy for electric vehicles together with the optimal load response to spot market price on the distribution power system with high wind power penetrations......Since the hourly spot market price is available one day ahead in Denmark, the electricity price could be transferred to the consumers and they may make some optimal charge and discharge schedules for their electric vehicles in order to minimize their energy costs. This paper presents an optimal...... operation strategy for a Plug-In Electric Vehicle (PEV) in relation to the hourly electricity price in order to achieve minimum energy costs of the PEV. The western Danish power system, which is currently the grid area in the world that has the largest share of wind power in its generation profiles and may...

  5. Towards the Common Baltic Electricity Market

    International Nuclear Information System (INIS)

    Bacauskas, A.

    2000-01-01

    In 1992, the Governments of Estonia, Latvia and Lithuania signed the agreement on parallel operation of the power systems. The power companies of Estonia, Latvia and Lithuania established the DC Baltija joint venture. Information on future plans of common market of Estonia, Latvia and Lithuania is given

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

    International Nuclear Information System (INIS)

    2002-01-01

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

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

    Science.gov (United States)

    McNeil, Kytson L.

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

  8. 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.

  9. Eligibility in the electricity and gas retail markets in Spain

    International Nuclear Information System (INIS)

    Marti, F.

    2003-01-01

    The true liberalization of the electricity and gas retail markets in Spain was initiated in 1997 and 1998 respectively with the approval of the Electricity Act and the Hydrocarbons Act that set up the regulatory framework for both sectors. The initial eligibility calendars established were speeded up by later legal dispositions which set the full eligibility in January 2003. Therefore in January the number of eligible consumers increased from 65,000 electricity consumers to 22 million and from around 5,000 gas consumers to 4.5 million. In Spain there has been however a coexistence of a liberalized market and a regulated market. While in the liberalized market the consumer will pay a regulated Third Party Access (TPA) tariff for the use of the network and a free price for the energy, in the regulated market the consumer will pay all-inclusive tariffs which are established by the Government in the case of the electricity tariffs and by the Ministry of Economy in the case of the gas tariffs. Today any electricity and gas consumer can choose whether he wants to be supplied through the regulated market or through the liberalized one. Only the electricity HV (High Voltage Supply) all-inclusive tariffs are to disappear in 2007. No date has been set for the others. Also important is to highlight the increase in the consumption of both energy sources. The electricity demand has increased about 38 percent from 1997 (155 TWh/year) to 2002 (214 TWh/year). The gas sector, on the other hand, has increased at a higher rate. From 150 TWh/year in January 1999 to almost 270 TWh/year in July 2003, an 80 percent increase in four and a half years.(author)

  10. 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

  11. 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

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

    International Nuclear Information System (INIS)

    2002-01-01

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

  13. Feedback, competition and stochasticity in a day ahead electricity market

    International Nuclear Information System (INIS)

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

    2010-01-01

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

  14. Distributed resources and re-regulated electricity markets

    International Nuclear Information System (INIS)

    Ackermann, Thomas

    2007-01-01

    This paper briefly defines distributed resources (DR) and discusses the current status of DR. The main focus is on discussing the value DR can provide to re-regulated electricity markets. DR can, under certain circumstances, help to significantly reduce the main problem of re-regulation, i.e. market power. Distributed generation and demand-side resources may, even if only small quantities in terms of size of the entire market are utilised, be able to help to significantly reduce market power. This results in a significantly more efficient market. To achieve such benefits, however, DR must be in operation during times when market power issues are likely to arise. To a certain extent this is the case as demand-side resources are usually independent of established generation companies. In addition, many business cases for DG require DG to actually operate to capture the second revenue. (author)

  15. The new electric power market in UK

    International Nuclear Information System (INIS)

    Goldoni, G.

    2000-01-01

    The New Electricity Trading Arrangements in UK are essentially based on bilateral contracts and a balancing mechanism. Under this new and very complex mechanism, the system operator will balance demand and supply, determine energy prices for out-of-balance positions and be subject to a global incentive scheme in order to perform efficiently its tasks [it

  16. 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

  17. Adequacy of supply standards for the electricity market: from obligations to informal market signals

    International Nuclear Information System (INIS)

    Werven, Michiel J.N. van; Nooij, Michiel de; Scheepers, Martin J.J.

    2005-06-01

    The adequacy of supply standard is ultimately based on a loss of load probability in combination with assumptions about the extent to which the national system can count on assistance of adjoining electricity supply systems during times of shortages. It can be used to calculate the required generation capacity in an ex-ante market analysis using different future scenarios. This standard in combination with monitoring of (future) market developments on the basis of several market indicators, can give a signal to market participants with respect to the expected adequacy of supply in the longer term. Market participants are informed about the actual and expected future status of adequacy of supply in the market. It is, however, very important that the assessment and the resulting signal should not be used by the government to intervene in the market, but only to improve market transparency and assist producers, suppliers, and consumers in their decisions towards an effective and efficient response on long-term market developments. Specific policy measures based on the monitoring results could provoke strategic behaviour of market participants. The signalising standard might be a powerful instrument in helping to solve the generation adequacy problem. This solution can be seen as a compromise between options that fully rely on an optimal response by the free electricity market and options where governments take the full responsibility

  18. 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

  19. Cross-border effects of capacity mechanisms in electricity markets

    International Nuclear Information System (INIS)

    Elberg, Christina

    2014-01-01

    To ensure security of supply in liberalized electricity markets, different types of capacity mechanisms are currently being debated or have recently been implemented in many European countries. The purpose of this study is to analyze the cross-border effects resulting from different choices on capacity mechanisms in neighboring countries. We consider a model with two connected countries that differ in the regulator's choice on capacity mechanism, namely strategic reserves or capacity payments. In both countries, competitive fi rms invest in generation capacity before selling electricity on the spot market. We characterize market equilibria and find the following main result: While consumers' costs may be the same under both capacity mechanisms in non-connected countries, we show that the different capacity mechanisms in interconnected countries induce redistribution effects. More precisely, we nd that consumers' costs are higher in countries in which reserve capacities are procured than in countries in which capacity payments are used to ensure the targeted reliable level of electricity.

  20. Competition in electricity spot markets. Economic theory and international experience

    Energy Technology Data Exchange (ETDEWEB)

    Fehr, Nils-Henrik von der; Harbord, David

    1998-09-01

    This publication gives a survey of economic theory and international experience connected to electricity spot markets. The main purpose is to consider the attempts that have been made to apply economic theory and empirical methods to the analysis of electricity markets, and to evaluate them in light of theoretical considerations and empirical evidence. The publication describes in simple terms the basic pool pricing mechanism, and experience with pools in a number of countries. It is worth emphasizing that it is not the purpose to treat in extensive detail the structure of electricity pools around the world. Key factors of the markets in England and Wales, Norway and Australia are described in order to allow for a comparison of design issues and evaluation of competitive performance. 80 refs., 14 figs., 15 tabs.

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

    International Nuclear Information System (INIS)

    MacGill, Iain

    2010-01-01

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

  2. 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.

  3. Analysis of the impact of imbalance settlement design on market behaviour in electricity balancing markets

    NARCIS (Netherlands)

    Van der Veen, R.A.C.; Abbasy, A.; Hakvoort, R.A.

    2010-01-01

    The imbalance settlement design is the part of an electricity balancing market design that stimulates so-called Balance Responsible Parties (BRPs) to balance their electricity production and consumption portfolio and to stick to their energy schedules by penalizing any deviations from these

  4. Engineering approach to model and compute electric power markets settlements

    International Nuclear Information System (INIS)

    Kumar, J.; Petrov, V.

    2006-01-01

    Back-office accounting settlement activities are an important part of market operations in Independent System Operator (ISO) organizations. A potential way to measure ISO market design correctness is to analyze how well market price signals create incentives or penalties for creating an efficient market to achieve market design goals. Market settlement rules are an important tool for implementing price signals which are fed back to participants via the settlement activities of the ISO. ISO's are currently faced with the challenge of high volumes of data resulting from the increasing size of markets and ever-changing market designs, as well as the growing complexity of wholesale energy settlement business rules. This paper analyzed the problem and presented a practical engineering solution using an approach based on mathematical formulation and modeling of large scale calculations. The paper also presented critical comments on various differences in settlement design approaches to electrical power market design, as well as further areas of development. The paper provided a brief introduction to the wholesale energy market settlement systems and discussed problem formulation. An actual settlement implementation framework and discussion of the results and conclusions were also presented. It was concluded that a proper engineering approach to this domain can yield satisfying results by formalizing wholesale energy settlements. Significant improvements were observed in the initial preparation phase, scoping and effort estimation, implementation and testing. 5 refs., 2 figs

  5. Iglesia, electrónica y marketing

    Directory of Open Access Journals (Sweden)

    Hugo Assmann

    2015-01-01

    Full Text Available Solamente nos ocuparemos en esta primera entrega de la así llamada "Iglesia Electrónica" en los EUA por algunas razones bastante obvias. Queremos dejar bien claro que esta sección tiene su razón de ser, no tanto en referencia a la realidad norteamericana, sino en el significado de ella para la mejor comprensión de lo que sucede en nuestros países latinoamericanos.

  6. Forecasting day ahead electricity spot prices: The impact of the EXAA to other European electricity markets

    OpenAIRE

    Ziel, Florian; Steinert, Rick; Husmann, Sven

    2015-01-01

    In our paper we analyze the relationship between the day-ahead electricity price of the Energy Exchange Austria (EXAA) and other day-ahead electricity prices in Europe. We focus on markets, which settle their prices after the EXAA, which enables traders to include the EXAA price into their calculations. For each market we employ econometric models to incorporate the EXAA price and compare them with their counterparts without the price of the Austrian exchange. By employing a forecasting study...

  7. Study on the Swiss electricity market - the current situation

    International Nuclear Information System (INIS)

    Walti, N. O.

    2007-01-01

    This short article discusses the results of a study made on the opinions of energy suppliers in Switzerland with respect to future power generation in Switzerland. In particular, questions concerning new nuclear power stations and gas-fueled generating facilities are examined. The study was commissioned to tackle questions concerning the liberalisation of the electricity market, a future possible gap in supply, mains regulation and changes in market structure. The article discusses the findings of the study, in which 87 utilities took part, and lists strategic areas for action to be taken by electricity utilities such as efficiency analysis, regulation management, co-operative sourcing and possible mergers and acquisitions

  8. Opening the electricity market - the Swiss Confederation's perspectives

    International Nuclear Information System (INIS)

    Steinmann, W.

    2002-01-01

    This article discusses the possibilities offered by the opening of the Swiss electricity market in the European context. The importance of appropriate legislation that would enable Switzerland to actively take part in the shaping of a Europe-wide electricity market is stressed. Measures to be considered such as those in the areas of third-party access, tariffs, security of supply and the promotion of renewable sources of energy are discussed. Questions of public service are addressed and comparisons are made to solutions that have been implemented in other areas such as post, telecommunications and the railway system. The regulations and structures suggested in Swiss proposals for legislation are discussed in detail

  9. Optimal contracts for wind power producers in electricity markets

    KAUST Repository

    Bitar, E.

    2010-12-01

    This paper is focused on optimal contracts for an independent wind power producer in conventional electricity markets. Starting with a simple model of the uncertainty in the production of power from a wind turbine farm and a model for the electric energy market, we derive analytical expressions for optimal contract size and corresponding expected optimal profit. We also address problems involving overproduction penalties, cost of reserves, and utility of additional sensor information. We obtain analytical expressions for marginal profits from investing in local generation and energy storage. ©2010 IEEE.

  10. 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.

  11. Understanding household switching behavior in the retail electricity market

    International Nuclear Information System (INIS)

    Yang, Yingkui

    2014-01-01

    Deregulation of the Danish retail electricity market nearly a decade ago has produced little consumer switching among suppliers or renegotiation of supplier service contracts. From an energy policy perspective, a certain amount of supplier switching is an important indicator of the success of market deregulation. This argues that poor relationship management and a lack of economic benefits are two critical barriers to consumer switching. Latent class analysis indicates that only 11.4% of consumers are non-switchers, whereas 41.1% can be considered potential switchers and approximately one-half (47.5%) can be considered apathetic consumers. We also discuss the managerial implications for both electricity suppliers and policy makers. - Highlights: • This paper investigates the barriers for electricity supplier switching in Denmark. • Four switching barriers were identified. • Relationship management and economic benefits are critical for consumer switching. • Three consumer segments for electricity supplier switching were identified

  12. Basic Studies on Chaotic Characteristics of Electric Power Market Price

    Science.gov (United States)

    Takeuchi, Yuya; Miyauchi, Hajime; Kita, Toshihiro

    Recently, deregulation and reform of electric power utilities have been progressing in many parts of the world. In Japan, partial deregulation has been started from generation sector since 1995 and partial deregulation of retail sector is executed through twice law revisions. Through the deregulation, because electric power is traded in the market and its price is always fluctuated, it is important for the electric power business to analyze and predict the price. Although the price data of the electric power market is time series data, it is not always proper to analyze by the linear model such as ARMA because the price sometimes changes suddenly. Therefore, in this paper, we apply the methods of chaotic time series analysis, one of non-linear analysis methods, and investigate the chaotic characteristics of the system price of JEPX.

  13. Impact of electric industry deregulation on gas markets: a power marketer's perspective

    International Nuclear Information System (INIS)

    Jahns, F.H.

    1996-01-01

    The impact of electric industry deregulation on gas markets was examined. The presentation included industry comparisons of 1994 gas total revenues versus electricity total revenues for residential, commercial, and industrial use. A chart forecasting the outlook for gas-fired generation of electric power indicated that the use of natural gas as feedstock for power generation will increase from 12% to 37% during the period 1994 to 2003. 16 figs

  14. Canadian electricity exports and imports : an energy market assessment

    International Nuclear Information System (INIS)

    2003-01-01

    This energy market assessment (EMA) report focuses on recent trends in exports and imports of Canadian electricity and the associated revenue and pricing. It also outlines major developments in electricity markets in Canada and the United States in the past decade with reference to the implications of electricity trade for both consumers and the power industry. This guide comes at a time of market openings in Alberta and Ontario, and with recent increases in applications to the National Energy Board for electricity exports and international power lines. The first chapter presents an overview of current Canadian federal regulatory regime for electricity exports and restructuring of the electric power industry in Canada and the United States. The second chapter reviews electricity exports and imports from a national perspective. Provincial analyses were presented in the third chapter which also covered international interconnections, export and import trends, export and import pricing, implications for consumer prices, and factors affecting future trade. The final chapter presents some observations on each of these issues. It is noted that exports have fluctuated significantly from year to year due to specific events including the shutdown of nuclear power plants, high gas prices, and the California electricity crisis in 2000-2001. Canadian international electricity trade has continued to yield net revenues of $1 to $2 billion per year due to strong electricity export prices. The relationship between export and import prices varies from province to province. Canadian utilities have emphasized the need for more transmission to the U.S. to foster future trade and improve transmission reliability. refs., tabs., figs

  15. Gas/electric convergence: the role of marketers

    Energy Technology Data Exchange (ETDEWEB)

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

    1997-04-01

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

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

    International Nuclear Information System (INIS)

    Founanou, M.

    2011-01-01

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

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

    International Nuclear Information System (INIS)

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

    2008-01-01

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

  18. Evaluation of wholesale electric power market rules and financial risk management by agent-based simulations

    Science.gov (United States)

    Yu, Nanpeng

    dissertation, basic financial risk management concepts relevant for wholesale electric power markets are carefully explained and illustrated. In addition, the financial risk management problem in wholesale electric power markets is generalized as a four-stage process. Within the proposed financial risk management framework, the critical problem of financial bilateral contract negotiation is addressed. This dissertation analyzes a financial bilateral contract negotiation process between a generating company and a load-serving entity in a wholesale electric power market with congestion managed by locational marginal pricing. Nash bargaining theory is used to model a Pareto-efficient settlement point. The model predicts negotiation results under varied conditions and identifies circumstances in which the two parties might fail to reach an agreement. Both analysis and agent-based simulation are used to gain insight regarding how relative risk aversion and biased price estimates influence negotiated outcomes. These results should provide useful guidance to market participants in their bilateral contract negotiation processes.

  19. 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

  20. Cost-Optimal ATCs in Zonal Electricity Markets

    DEFF Research Database (Denmark)

    Jensen, Tue Vissing; Kazempour, Jalal; Pinson, Pierre

    2017-01-01

    In contrast to existing frameworks for AvailableTransfer Capacity (ATC) determination, we propose to define ATCs in an integrated and data-driven manner, optimizing for expected operational costs of the whole system to derive cost-optimal ATCs. These ATCs are purely financial parameters, separate...... from the physical ATCs based on security indices only typically used in zonal electricity markets today. Determining cost-optimal ATCs requires viewing ATCs as an endogenous market construct, and leads naturally to the definition of a market entity whose responsibility is to optimize ATCs...

  1. Energy Market Transparency: Analyzing the Impacts of Constraint Relaxation and Out-of-Market Correction Practices in Electric Energy Markets

    Science.gov (United States)

    Al-Abdullah, Yousef Mohammad

    This work presents research on practices in the day-ahead electric energy market, including replication practices and reliability coordinators used by some market operators to demonstrate the impact these practices have on market outcomes. The practice of constraint relaxations similar to those an Independent System Operator (ISO) might perform in day-ahead market models is implemented. The benefits of these practices are well understood by the industry; however, the implications these practices have on market outcomes and system security have not been thoroughly investigated. By solving a day-ahead market model with and without select constraint relaxations and comparing the resulting market outcomes and possible effects on system security, the effect of these constraint relaxation practices is demonstrated. Proposed market solutions are often infeasible because constraint relaxation practices and approximations that are incorporated into market models. Therefore, the dispatch solution must be corrected to ensure its feasibility. The practice of correcting the proposed dispatch solution after the market is solved is known as out-of-market corrections (OMCs), defined as any action an operator takes that modifies a proposed day-ahead dispatch solution to ensure operating and reliability requirements. The way in which OMCs affect market outcomes is illustrated through the use of different corrective procedures. The objective of the work presented is to demonstrate the implications of these industry practices and assess the impact these practices have on market outcomes.

  2. Interactions between the German Electricity Spot Market and the Reserve Energy Market

    International Nuclear Information System (INIS)

    Graeber, Bernhardt

    2005-01-01

    Eight years after market opening, Germany has well established spot and future markets for electricity. Besides OTC and Internet broker platforms the main market place is the European Energy Exchange in Leipzig (EEX) with its spot and future market. Less known is the reserve energy market in Germany. The four German transmission system operators (TSOs) EnBW, EON, RWE and Vattenfall purchase network services on the reserve energy market. Products with specific technical requirements are primary, secondary and tertiary reserve. (Details about the technical requirements and typical means for providing the required services will be presented.) Each TSO organises a separate auction for these products - for primary and secondary reserve half-yearly, for tertiary reserve daily. Due to the technical requirements the liquidity on these markets is limited, but especially on the tertiary reserve market it is recently growing significantly due to new participants marketing several smaller municipal and industrial reserve power plants as combined bids which meet the 30 MW min. capacity requirement. Every power plant or interruptible load could not only be offered as capacity on the reserve market but could also be dispatched for the spot market. Therefore the developments of prices on these markets are not independent and opportunity costs against the spot market can be estimated for different type of plants bidding in the reserve market. Another interaction between reserve and spot market is caused by the balancing price system in Germany. Prices for balancing energy meeting deviations between load, trading balance and production of a market participant are based on quarter-hourly reserve energy costs encountered by the TSO. As unbiased load and production forecasts are not strictly enforced by the TSOs so far, part of the planned demand could be met with balancing energy if EEX spot market prices rise above expected balancing energy prices. This interrelationship has a

  3. Defining European Wholesale Electricity Markets. An 'And/Or' Approach

    International Nuclear Information System (INIS)

    Dijkgraaf, E.; Janssen, M.C.W.

    2009-09-01

    An important question in the dynamic European wholesale markets for electricity is whether to define the geographical market at the level of an individual member state or more broadly. We show that if we currently take the traditional approach by considering for each member state whether there is one single other country that provides a substitute for domestic production, the market in each separate member state has still to be considered a separate market. However, if we allow for the possibility that at different moments in time there is another country that provides a substitute for domestic production, then the conclusion should be that certain member states do not constitute a separate geographical market. This is in particular true for Belgium, but also for The Netherlands, France, and to some extent also for Germany and Austria. We call this alternative approach the 'and/or' approach.

  4. 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

  5. Adaptive Portfolio Optimization for Multiple Electricity Markets Participation

    DEFF Research Database (Denmark)

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

    2016-01-01

    , in different contexts. The price forecasts are performed using artificial neural networks, providing a specific database with the expected prices in the different market types, at each time. This database is then used as input by an evolutionary particle swarm optimization process, which originates the most...... as the most suitable solution to facilitate the small players' participation in electric power negotiations while improving energy efficiency. The opportunity for players' participation in multiple energy negotiation environments (smart grid negotiation in addition to the already implemented market types......, such as day-ahead spot markets, balancing markets, intraday negotiations, bilateral contracts, forward and futures negotiations, and among other) requires players to take suitable decisions on whether to, and how to participate in each market type. This paper proposes a portfolio optimization methodology...

  6. Risk premiums in the German day-ahead Electricity Market

    International Nuclear Information System (INIS)

    Viehmann, Johannes

    2011-01-01

    This paper conducts an empirical analysis of risk premiums in the German day-ahead Electricity Wholesale Market. We compare hourly price data of the European Energy Exchange (EEX) auction and of the continuous over-the-counter (OTC) market which takes place prior to the EEX auction. Data provided by the Energy Exchange Austria (EXAA) has been used as a snapshot of the OTC market two hours prior to the EEX auction. Ex post analysis found market participants are willing to pay both significant positive and negative premiums for hourly contracts. The largest positive premiums were paid for high demand evening peak hours on weekdays during winter months. By contrast, night hours on weekends featuring lowest demand levels display negative premiums. Additionally, ex ante analysis found a strong positive correlation between the expected tightness of the system and positive premiums. For this purpose, a tightness factor has been introduced that includes expectations of fundamental factors such as power plant availability, wind power production and demand. Hence, findings by can be supported that power traders in liberalised markets behave like risk-averse rational economic agents. - Research highlights: →Analysis of hourly risk premiums in the German day-ahead Electricity Wholesale Market. →Market participants are willing to pay both significant positive and negative premiums for hourly contracts. →A strong correlation exists between the expected tightness of the power system and premiums.

  7. The EU's Major Electricity and Gas Utilities since Market Liberalization

    International Nuclear Information System (INIS)

    Schulke, Ch.

    2010-01-01

    A major change has taken place in the company structure of the European electricity and gas markets. Twenty years ago, national or regional monopolies dominated the markets and there was strictly no competition between utilities. But since the liberalization of EU energy markets began in the 1990's, companies like E.ON, GDF Suez, EDF, Enel, and RWE have become European giants with activities in a large number of Member States. The advocates of market liberalization did not expect, or even intend, the emergence of a small number of large utilities that control an increasing part of the EU market. Some observers already claim that liberalization has led to an oligopoly with detrimental consequences for competition. Based on extensive background research, this book presents a fact-based analysis of the changes in the European utility sector since the 1990's. Case studies of the seven largest utilities illustrate how companies adapted their strategies to the changing market environment. The author underlines diverging choices and common trends like geographic expansion into new markets via mergers and acquisitions or diversification of business activities with the aim of using synergies between electricity and gas. (author)

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

    Directory of Open Access Journals (Sweden)

    Hatice Karahan

    2013-01-01

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

  9. Electricity costs in a changing market

    International Nuclear Information System (INIS)

    Lea, J.

    2003-01-01

    Maritime Electric is the electric utility for Prince Edward Island (PEI). This paper outlined the energy supply strategy for the province along with its system performance and improvements. In 1992 the energy supply for PEI was 772 GWh with an energy mix of nuclear, coal, and short term purchases. In 2002, the energy supply mix was similar but the total supply was 1020 GWh. In December 2002, the peak load on the Island exceeded cable capacity. Load growth is projected to continue. The utility buys approximately 65 per cent of its energy under short term contracts. Energy options for PEI include off-island purchases, natural gas, wind, or energy conservation. However, in terms of off-island purchases, no new capacity is planned for either Nova Scotia or New Brunswick and the future of the 630 MW Point Lepreau nuclear power station is not clear. By 2005, PEI expects to have a new 50 MW gas turbine for added reliability. By 2010, the power mix in PEI should include 10 per cent coal, 15 per cent nuclear, 20 per cent short term purchases, 30 per cent new base load supply, 15 per cent intermediate load supply, and 10 per cent wind power. 1 tab., 6 figs

  10. The new car market for electric vehicles and the potential for fuel substitution

    International Nuclear Information System (INIS)

    Kihm, Alexander; Trommer, Stefan

    2014-01-01

    Electric vehicles are expected to significantly reduce road transport emissions, given an increasingly renewable power generation. While technological issues are more and more being overcome, the economic viability and thus possible adoption is still constrained, mainly by higher prices than for conventional vehicles. In our work we analyze possible market developments for electric vehicles with an application to Germany. We develop a drivetrain choice model with economical, technical and social constraints on the current vehicle registrations and inventory. It estimates the demand for electric vehicles until 2030 for private and commercially registered cars as well as light commercial vehicles. The results show a replacement potential of almost one third of the total German annual mileage for these vehicles. The result has a high granularity to allow for detailed emission calculation along different spatial areas as well as vehicle and engine types. Besides a baseline forecast, our method allows for calculating different scenarios regarding policy actions or the future development of important parameters such as energy prices. The results provide insights for policy measures as well as for transport and environmental modeling. - Highlights: • We model the potential German market for electric vehicles using total cost of ownership. • The results show a substitution potential of one third of the total German annual mileage. • Plug-in hybrid drivetrains outperform battery electric ones due to their cost advantages. • Suburbia around large cities is the largest market for EVs. • The first main vehicle categories for EVs are large and medium-sized company cars

  11. Thermal energy storage for electricity-driven space heating in a day-ahead electricity market

    DEFF Research Database (Denmark)

    Pensini, Alessandro

    2012-01-01

    Thermal Energy Storage (TES) in a space heating (SH) application was investigated. The study aimed to determine the economic benefits of introducing TES into an electricity-driven SH system under a day-ahead electricity market. The performance of the TES was assessed by comparing the cost...

  12. Load As A Reliability Resource in the Restructured Electricity Market

    Energy Technology Data Exchange (ETDEWEB)

    Kueck, J.D.

    2002-06-10

    Recent electricity price spikes are painful reminders of the value that meaningful demand-side responses could bring to the restructuring US electricity system. Review of the aggregate offers made by suppliers confirms that even a modest increase in demand elasticity could dramatically reduce these extremes in price volatility. There is a strong need for dramatically increased customer participation in these markets to enhance system reliability and reduce price volatility. Indeed, allowing customers to manage their loads in response to system conditions might be thought of as the ultimate reliability resource. Most would agree that meaningful demand-side responses to price are the hallmark of a well-functioning competitive market [1]. Yet, in today's markets for electricity, little or no such response is evident. The reason is simple: customers currently do not experience directly the time-varying costs of their consumption decisions. Consequently, they have no incentive to modify these decisions in ways that might enhance system reliability or improve the efficiency of the markets in which electricity is traded. Increased customer participation is a necessary step in the evolution toward more efficient markets for electricity and ancillary services. This scoping report provides a three-part assessment of the current status of efforts to enhance the ability of customer's load to participate in competitive markets with a specific focus on the role of customer loads in enhancing electricity system reliability. First, this report considers the definitions of electricity-reliability-enhancing ancillary services (Section 2) and a preliminary assessment of the ability of customer's loads to provide these services. Second, is a review a variety of programs in which load has been called on as a system reliability resource (Section 3). These experiences, drawn from both past and current utility and ISO programs, focus on programs triggered by system

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

    DEFF Research Database (Denmark)

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

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

  14. Green marketing in the Massachusetts electric company retail competition pilot program

    Energy Technology Data Exchange (ETDEWEB)

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

    1997-10-01

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

  15. Electricity supply contracts in the light of the opening of the electricity market

    International Nuclear Information System (INIS)

    Balthasar, M.

    2007-01-01

    This article takes a look at the limits placed on electricity supply contracts by cartel legislation in Switzerland. The realisation of the staggered liberalisation of the Swiss electricity market and the necessary prevention of discrimination and market distortion are discussed. The findings of a dissertation on the subject are reviewed. The historical background of the opening of the Swiss market is presented and comparisons with the situation in Europe are made. The influence of the new legislation on long and short-term supply contracts is examined

  16. Welfare Impact of Virtual Trading on Wholesale Electricity Markets

    Science.gov (United States)

    Giraldo, Juan S.

    Virtual bidding has become a standard feature of multi-settlement wholesale electricity markets in the United States. Virtual bids are financial instruments that allow market participants to take financial positions in the Day-Ahead (DA) market that are automatically reversed/closed in the Real-Time (RT) market. Most U.S. wholesale electricity markets only have two types of virtual bids: a decrement bid (DEC), which is virtual load, and an increment offer (INC), which is virtual generation. In theory, financial participants create benefits by seeking out profitable bidding opportunities through arbitrage or speculation. Benefits have been argued to take the form of increased competition, price convergence, increased market liquidity, and a more efficient dispatch of generation resources. Studies have found that price convergence between the DA and RT markets improved following the introduction of virtual bidding into wholesale electricity markets. The improvement in price convergence was taken as evidence that market efficiency had increased and many of the theoretical benefits realized. Persistent price differences between the DA and RT markets have led to calls to further expand virtual bidding as a means to address remaining market inefficiencies. However, the argument that price convergence is beneficial is extrapolated from the study of commodity and financial markets and the role of futures for increasing market efficiency in that context. This viewpoint largely ignores details that differentiate wholesale electricity markets from other commodity markets. This dissertation advances the understanding of virtual bidding by evaluating the impact of virtual bidding based on the standard definition of economic efficiency which is social welfare. In addition, an examination of the impacts of another type of virtual bid, up-to-congestion (UTC) transactions is presented. This virtual product significantly increased virtual bidding activity in the PJM interconnection

  17. Essays on carbon abatement and electricity markets

    Science.gov (United States)

    Taber, John Timothy

    In the first chapter of this dissertation, I study the effects of a number of policies which affect the electric grid using the SuperOPF, a full AC optimization/simulation framework with optimal investment developed at Cornell University. A 36-node model of the Northeast Power Coordinating Council is used to test policies that aim to reduce CO2, other emissions, or otherwise impact the operation of the electric grid: a base case, with no new environmental legislation; enactment of the Kerry-Lieberman CO2 allowance proposal in 2012; following Fukishima, a retirement of all US nuclear plants by 2022 with and without Kerry-Lieberman; marginal damages from SO2 and NOX emissions charged to coal, gas and oil-fired generation; plug-in hybrid electric vehicle load filling; wind incentives in place; and two cases which combine these. The cases suggest that alternative policies may have very different outcomes in terms of electricity prices, emissions, and health outcomes. In all cases, however, the optimal strategy for future investment is investment in new natural gas combined cycle plants. Policies can change how much new generation is built, whether other plants are built, or what types of plants are retired. The second chapter of my dissertation utilizes the SuperOPF and the model of the Northeast Power Coordinating Council to analyze the issue of carbon leakage. I analyze the effects of a regionally-limited carbon cap and trade program, the Regional Greenhouse Initiative (RGGI), when additional generating assets in non-affected states are included in the analysis. In the face of different carbon prices on generating assets in covered and non-covered states, generation is expected to shift from states bound by RGGI to states outside of RGGI. This carbon leakage may undermine some or all of the benefits of RGGI while simultaneously increasing prices for customers in the area. Even though carbon prices under RGGI are very low, some leakage is occurring, and this leakage

  18. Optimal control of an electric vehicle’s charging schedule under electricity markets

    DEFF Research Database (Denmark)

    Lan, Tian; Hu, Junjie; Kang, Qi

    2013-01-01

    ), since the hourly electricity prices are different in the market. In this paper, the problem is formulated into an optimal control one and solved by dynamic programming. Optimization aims to find the economically optimal charging solution for each vehicle. In this paper, a nonlinear battery model......As increasing numbers of electric vehicles (EVs) enter into the society, the charging behavior of EVs has got lots of attention due to its economical difference within the electricity market. The charging cost for EVs generally differ from each other in choosing the charging time interval (hourly...

  19. 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.

  20. 77 FR 51795 - Coordination Between Natural Gas and Electricity Markets

    Science.gov (United States)

    2012-08-27

    ... structures and mix of resources that co-exist. The Commission anticipates that the differing perspectives of... transmission provider and its marketing function) need to be clarified or potentially revised to improve gas... coordinate studies of the natural gas and electric systems to analyze forecasted resource mix and/or...

  1. An analysis of the South East Europe electricity market

    International Nuclear Information System (INIS)

    Majstrovic, G.; Tot, M.; Medic, I.

    2006-01-01

    Until October 2004, the South East European (SEE) power system had never been connected in unified parallel operation. For the first time in history, all of continental Europe became a single synchronous electricity area with 450 million people in 22 countries. At the Union for the Co-ordination of Transmission of Electricity (UCTE), regional countries in the SEE agreed to create a stable common regulatory and market framework capable of attracting investment in gas networks, power generation and transmission networks, so that all countries would have access to the stable and continuous gas and electricity supply that is essential for economic development and social stability. This paper provided an overview of the electricity market in the SEE and discussed the advantages and disadvantages of the regional market. A brief description of each relevant country in the context of power issues was presented. It also provided some results of a long term generation and transmission development planning Geographic Information system study for the SEE region and analysed the influence on regional security of supply. In this regard, investment opportunities were identified. It was concluded that the main disadvantages in regional energy market establishing include differences in levels of economy; production and consumption structure; energy prices; purchasing power parity; energy sector organization; transmission bottlenecks; power plant aging, low efficiency and problems in environmental protection. The main advantages should cover lower total development expense and system operation as well as higher supply security. 4 tabs., 3 figs., 8 refs

  2. 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

  3. Optimal Wind Power Uncertainty Intervals for Electricity Market Operation

    Energy Technology Data Exchange (ETDEWEB)

    Wang, Ying; Zhou, Zhi; Botterud, Audun; Zhang, Kaifeng

    2018-01-01

    It is important to select an appropriate uncertainty level of the wind power forecast for power system scheduling and electricity market operation. Traditional methods hedge against a predefined level of wind power uncertainty, such as a specific confidence interval or uncertainty set, which leaves the questions of how to best select the appropriate uncertainty levels. To bridge this gap, this paper proposes a model to optimize the forecast uncertainty intervals of wind power for power system scheduling problems, with the aim of achieving the best trade-off between economics and reliability. Then we reformulate and linearize the models into a mixed integer linear programming (MILP) without strong assumptions on the shape of the probability distribution. In order to invest the impacts on cost, reliability, and prices in a electricity market, we apply the proposed model on a twosettlement electricity market based on a six-bus test system and on a power system representing the U.S. state of Illinois. The results show that the proposed method can not only help to balance the economics and reliability of the power system scheduling, but also help to stabilize the energy prices in electricity market operation.

  4. User-Aware Electricity Price Optimization for the Competitive Market

    Directory of Open Access Journals (Sweden)

    Allegra De Filippo

    2017-09-01

    Full Text Available Demand response mechanisms and load control in the electricity market represent an important area of research at the international level: the trend towards competition and market liberalization has led to the development of methodologies and tools to support energy providers. Demand side management helps energy suppliers to reduce the peak demand and remodel load profiles. This work is intended to support energy suppliers and policy makers in developing strategies to act on the behavior of energy consumers, with the aim to make a more efficient use of energy. We develop a non-linear optimization model for the dynamics of the electricity market, which can be used to obtain tariff recommendations or for setting the goals of a sensibilization campaign. The model comes in two variants: a stochastic version, designed for residential electricity consumption, and a deterministic version, suitable for large electricity users (e.g., public buildings, industrial users. We have tested our model on data from the Italian energy market and performed an extensive analysis of different scenarios. We also tested the optimization model in a real setting in the context of the FP7 DAREED project (http://www.dareed.eu/, where the model has been employed to provide tariff recommendations or to help the identification of goals for local policies.

  5. The Future of Centrally-Organized Wholesale Electricity Markets

    Energy Technology Data Exchange (ETDEWEB)

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

    2017-06-21

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

  6. Accelerating residential PV expansion: demand analysis for competitive electricity markets

    International Nuclear Information System (INIS)

    Duke, Richard; Williams, Robert; Payne, Adam

    2005-01-01

    This article quantifies the potential market for grid-connected, residential photovoltaic (PV) electricity integrated into new homes built in the US. It complements an earlier supply-side analysis by the authors that demonstrates the potential to reduce PV module prices below $1.5/W p by scaling up existing thin-film technology in 100 MW p /yr manufacturing facilities. The present article demonstrates that, at that price, PV modules may be cost effective in 125,000 new home installations per year (0.5 GW p /yr). While this market is large enough to support multiple scaled up thin-film PV factories, inefficient energy pricing and demand-side market failures will inhibit prospective PV consumers without strong public policy support. Net metering rules, already implemented in many states to encourage PV market launch, represent a crude but reasonable surrogate for efficient electricity pricing mechanisms that may ultimately emerge to internalize the externality benefits of PV. These public benefits include reduced air pollution damages (estimated costs of damage to human health from fossil fuel power plants are presented in Appendix A), deferral of transmission and distribution capital expenditures, reduced exposure to fossil fuel price risks, and increased electricity system reliability for end users. Thus, net metering for PV ought to be implemented as broadly as possible and sustained until efficient pricing is in place. Complementary PV 'buydowns' (e.g., a renewable portfolio standard with a specific PV requirement) are needed to jumpstart regional PV markets

  7. Accelerating residential PV expansion: supply analysis for competitive electricity markets

    International Nuclear Information System (INIS)

    Payne, Adam; Williams, Robert H.; Duke, Richard

    2001-01-01

    Photovoltaic (PV) technology is now sufficiently advanced that market support mechanisms such as net metering plus a renewable portfolio standard (RPS) could induce rapid PV market growth in grid-connected applications. With such support mechanisms, markets would be sufficiently large that manufacturers could profitably build and operate 100 MW p /yr PV module factories, and electricity costs for residential rooftop PV systems would compare favorably with residential electricity prices in certain areas (e.g., California and the greater New York region in the US). This prospect is illustrated by economic and market analyses for one promising technology (amorphous silicon thin-film PV) from the perspectives of both module manufacturers and buyers of new homes with rooftop PV systems. With public policies that reflect the distributed and environmental benefits offered by PV-and that can sustain domestic PV market demand growth at three times the historical growth rate for a period of the order of two decades - PV could provide 3% of total US electricity supply by 2025. (Author)

  8. 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.

  9. French wholesale electricity and gas markets in 2007. Monitoring report

    International Nuclear Information System (INIS)

    2008-12-01

    Settled on 24 March 2000, the French Energy Regulatory Commission (CRE) is an independent authority. CRE supports an efficient functioning of the electricity and natural gas markets, to the advantage of final consumers. CRE ensures the absence of any discrimination, cross subsidy or obstacle to competition. CRE has examined the functioning of the wholesale markets for electricity and gas for the year 2007. The report discloses the results of a first set of analyses, as well as the next actions to be conducted in order to explain some observed behaviour. On the basis of analyses led on the electricity market, CRE observes that nuclear generation was marginal during 15% of the hours in 2007. Hydraulic generation was marginal during 25% of the hours, coal generation during 25% to 30% of the hours and oil generation during less than 2% of the hours in 2007. Finally, prices on the border markets were of high importance on the French prices which they determined during 20% to 25% of the hours of the year. On an efficient market, the price is driven by the marginal power plant among all those which contribute to satisfy the demand. Therefore the wholesale price formation is conditioned by the frequency of marginality of each generation sector and by the associated valuation of production. On the day-ahead market, when nuclear or hydraulic generation was marginal, the day-ahead price reflected the associated valuation which was decided by EDF. The level of this valuation was generally higher than the marginal generation cost of these plants. As a matter of fact, a producer, even market dominant, may legitimately seek to optimise its income, provided that there is no abuse of a dominant position or any price manipulation. Consequently, at this stage, the relevance of the valuation method for nuclear and hydraulic generation on the wholesale market is still to be checked. CRE has also demonstrated that generation transparency, even if it gradually increased, still needs to

  10. Liberalization of electricity markets in Quebec and France: crossed prospects

    International Nuclear Information System (INIS)

    Caron, Jocelyn

    2011-01-01

    This essay focuses on the liberalization of electricity markets in Quebec and France. As in most Western states, Quebec and France have undertaken reforms to liberalize their domestic electricity markets. Starting from a similar arrangement, namely occupied by a state monopoly, the French and Quebecois markets have evolved into a more or less liberalized model. What were the changes brought about by these reforms? What reasons have motivated them? What is the functioning of the model in place in both states? What are the prospects for these markets? To identify the issues of these reforms, this essay will be divided into four chapters. The first chapter will discuss the organization of markets in Quebec and French before the liberalizing reforms: in addition to the organization as such, this chapter will address the reasons why the two states have chosen a market controlled by the state. It emerges from this chapter that both states nationalized and regulated the electricity market to promote economic development and quality standards for a service considered public. The second chapter will examine the genesis of liberalization reforms, the different models of market organization and a summary of selected experiences of liberalization that took place both before those of Quebec and France ones. The diversity of market models and the pitfalls have lived through some states raised the fact that successful liberalization reforms is a complex process. The third chapter will analyse the reforms that changed markets in Quebec and France and more specifically, the organization of the market that has resulted. It is established that if the two markets have been forced to reform themselves by forces outside the two states, the paths that were taken differ greatly. Finally, the fourth chapter will conduct an initial assessment of the reforms and provide some forecast for the future. The reforms that have taken place in both states have produced satisfactory results taking

  11. Capacity payments in imperfect electricity markets: Need and design

    International Nuclear Information System (INIS)

    Joskow, Paul L.

    2008-01-01

    This paper argues that a variety of imperfections in wholesale 'energy-only' electricity markets lead to generators earning net revenues that are inadequate to support investment in a least cost portfolio of generating capacity and to satisfy consumer preferences for reliability. Theoretical and numerical examples are used to illustrate the sources of this 'missing money' problem. Improvements in 'energy-only' wholesale electricity markets, especially those that improve pricing when capacity is fully utilized, can reduce the magnitude of the missing money problem. However, these improvements are unlikely to fully ameliorate it. Forward capacity obligations and associated auction mechanisms to determine capacity prices are necessary to restore appropriate wholesale market prices and associated investment incentives to support the optimal portfolio of generating investments. The deficiencies of the original capacity payment mechanisms adopted in the US are discussed and the necessary improvements identified. (author)

  12. Generation adequacy and transmission interconnection in regional electricity markets

    International Nuclear Information System (INIS)

    Cepeda, Mauricio; Saguan, Marcelo; Finon, Dominique; Pignon, Virginie

    2009-01-01

    The power system capacity adequacy has public good features that cannot be entirely solved by electricity markets. Regulatory intervention is then necessary and established methods have been used to assess adequacy and help regulators to fix this market failure. In regional electricity markets, transmission interconnections play an important role in contributing to adequacy. However, the adequacy problem and related policy are typically considered at a national level. This paper presents a simple model to study how the interconnection capacity interacts with generation adequacy. First results indicate that increasing interconnection capacity between systems improves adequacy up to a certain level; further increases do not procure additional adequacy improvements. Furthermore, besides adequacy improvement, increasing transmission capacity under asymmetric adequacy criteria or national system characteristics could create several concerns about externalities. These results imply that regional coordination of national adequacy policies is essential to internalise adequacy of cross-border effects.

  13. Consumer benefits and solutions in open electricity markets

    International Nuclear Information System (INIS)

    Kapetanovic, T.

    2003-01-01

    Liberalization of electricity markets aims at fostering competitiveness of economy, reducing costs and improving quality. These goals introduce new opportunities and require adequate solutions for the position of consumers. Transparent pricing and tariffs, freedom to choose a supplier, a possibility to decide on preferred primary source, e.g. renewables, are some of the benefits. Security, reliability and quality of supply are a challenge in the unbundled environment, to be solved accordingly as well as the non-discrimination, access and connection to the grid. The paper presents consumer-related experiences in liberalized electricity markets, based on the developments in Austria since the full market opening on October 1, 2001. The issues covered include grid access, consumer switching, price and tariff developments. The concept of incentive and quality-regulation is mentioned briefly, concluding with security of supply issues and impacts of the European Union legislation.(author)

  14. Forecasting electricity market pricing using artificial neural networks

    International Nuclear Information System (INIS)

    Pao, Hsiao-Tien

    2007-01-01

    Electricity price forecasting is extremely important for all market players, in particular for generating companies: in the short term, they must set up bids for the spot market; in the medium term, they have to define contract policies; and in the long term, they must define their expansion plans. For forecasting long-term electricity market pricing, in order to avoid excessive round-off and prediction errors, this paper proposes a new artificial neural network (ANN) with single output node structure by using direct forecasting approach. The potentials of ANNs are investigated by employing a rolling cross validation scheme. Out of sample performance evaluated with three criteria across five forecasting horizons shows that the proposed ANNs are a more robust multi-step ahead forecasting method than autoregressive error models. Moreover, ANN predictions are quite accurate even when the length of the forecast horizon is relatively short or long

  15. Generation Companies’ Operative Strategies in the Spot Electricity Market

    Directory of Open Access Journals (Sweden)

    Tovar-Hernández J.H.

    2012-07-01

    Full Text Available In traditional regulation the obligation to meet the consumer demand was assumed, this guaranteed to generation companies the full recovery of their costs. However, in order to achieve greater efficiency, reduce the price of electricity, meet the continuously growing electricity consumption, and equalize prices in different regions, a new structure of the electricity industry has been created, where electric energy is traded through a market. Generation company’s future cash flows depend on day to day market participation, in order to satisfy all of their financial and economic requirements. In this paper, future cash flows required to fulfill with economic and financial commitments by a generation company immerse in this new market structure are studied. For this purpose, future cash flows are considered to be dependent on a single asset: electricity. Several scenarios with different fuel prices are generated in order to estimate the generation company’s future cash flows. The response of the competing generation companies is taken into account at each scenario. The fuel price changes are modelled using a concurrent binary tree.

  16. 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)

  17. The power to choose. Demand response in liberalized electricity markets

    International Nuclear Information System (INIS)

    2003-01-01

    Highly volatile electricity prices are becoming a more frequent and unwanted characteristic of modern electricity wholesale markets. But low demand elasticity, mainly the result of a lack of incentives and consumers' inability to control demand, means that consumer behaviour is not reflected in the cost of energy. This study analyses the impact of price-responsive demand and shows how pricing, policy and technology can be used to inform consumer behaviour and choice. Informed choice and market-based valuation of electricity supply will ensure liberalized markets are competitive, efficient, less volatile and able to provide long term security of supply. Significant benefits will occur even if only 5% of customers become responsive to price-incentives and information. And customers will respond to well designed programs, thereby developing a role in ensuring efficient price formulation for electricity. This study analyses the economic, efficiency and security benefits and identifies the changes in electricity tariffs and the network infrastructure needed to achieve greater demand response

  18. 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

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

    International Nuclear Information System (INIS)

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

    2009-05-01

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

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

    International Nuclear Information System (INIS)

    Gao, F.; Sheble, G.B.

    2010-01-01

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

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

    Energy Technology Data Exchange (ETDEWEB)

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

    2010-01-15

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

  2. Competitive nuclear production on the nordic deregulated electricity market

    International Nuclear Information System (INIS)

    Bohl, T.

    2000-01-01

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

  3. Electricity Market Module: Electricity finance and pricing submodule

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1996-06-01

    The purpose of this report is to document the updates to the Electricity Financial Pricing Module (EFP) to reflect the rate impacts of nuclear decommissioning. The EFP is part of the National Energy Modeling System (NEMS). The updates to the EFP related to nuclear decommissioning include both changes to the underlying data base and the methodology. Nuclear decommissioning refers to the activities performed to take a nuclear plant permanently out of service. The costs of nuclear decommissioning are substantial and uncertain. The recovery of these costs from ratepayers is to occur over the operating life of the nuclear plant. Utilities are obligated to make estimates of the nuclear decommissioning cost every few years. Given this estimate, utilities are to assess a charge upon ratepayers, such that over the operating life of the plant they collect sufficient funds to pay for the decommissioning. However, cost estimates for decommissioning have been increasing and it appears that utilities have not been collecting adequate funds to date. In addition, there is a real risk that many nuclear plants may be closed earlier than originally planned, further exacerbating the under collection problem. The updates performed in this project provide the EFP with the capability to analyze these issues. The remainder of this document is divided into two discussions: (1) Nuclear Decommissioning Data Base, and (2) Methodology. Appendix A contains the actual data base developed during the project.

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

    Energy Technology Data Exchange (ETDEWEB)

    Halseth, Arve

    1998-12-01

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

  5. 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

    , 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......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...

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

    Directory of Open Access Journals (Sweden)

    Chuntian Cheng

    2016-10-01

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

  7. 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

  8. The politics of regulation in the Turkish electricity market

    International Nuclear Information System (INIS)

    Cetin, Tamer; Oguz, Fuat

    2007-01-01

    Turkey began reforming the electricity market in 2001. The regulatory reform aimed to liberalize the market. However, the institutional and political structure was not ready for creating an efficiently working competition. The independent regulator did not have both experience and will to direct the industry to a more competitive environment. Currently, the reform has slowed down and political preferences drive the industry. This paper studies the reasons for the slowdown in the reform efforts by focusing on the relationships between the government, judiciary and the independent regulator. We conclude that strategic behaviors of players in the market, including the judiciary, the government, and the regulator, have made the introduction of competition to the market more costly

  9. The politics of regulation in the Turkish electricity market

    International Nuclear Information System (INIS)

    Cetin, T.

    2007-01-01

    Turkey began reforming the electricity market in 2001. The regulatory reform aimed to liberalize the market. However, the institutional and political structure was not ready for creating an efficiently working competition. The independent regulator did not have both experience and will to direct the industry to a more competitive environment. Currently, the reform has slowed down and political preferences drive the industry. This paper studies the reasons for the slowdown in the reform efforts by focusing on the relationships between the government, judiciary and the independent regulator. We conclude that strategic behaviors of players in the market, including the judiciary, the government, and the regulator, have made the introduction of competition to the market more costly. (author)

  10. Optogenetic versus Electrical Stimulation of Human Cardiomyocytes: Modeling Insights

    Science.gov (United States)

    Williams, John C.; Entcheva, Emilia

    2015-01-01

    Optogenetics provides an alternative to electrical stimulation to manipulate membrane voltage, and trigger or modify action potentials (APs) in excitable cells. We compare biophysically and energetically the cellular responses to direct electrical current injection versus optical stimulation mediated by genetically expressed light-sensitive ion channels, e.g., Channelrhodopsin-2 (ChR2). Using a computational model of ChR2(H134R mutant), we show that both stimulation modalities produce similar-in-morphology APs in human cardiomyocytes, and that electrical and optical excitability vary with cell type in a similar fashion. However, whereas the strength-duration curves for electrical excitation in ventricular and atrial cardiomyocytes closely follow the theoretical exponential relationship for an equivalent RC circuit, the respective optical strength-duration curves significantly deviate, exhibiting higher nonlinearity. We trace the origin of this deviation to the waveform of the excitatory current—a nonrectangular self-terminating inward current produced in optical stimulation due to ChR2 kinetics and voltage-dependent rectification. Using a unifying charge measure to compare energy needed for electrical and optical stimulation, we reveal that direct electrical current injection (rectangular pulse) is more efficient at short pulses, whereas voltage-mediated negative feedback leads to self-termination of ChR2 current and renders optical stimulation more efficient for long low-intensity pulses. This applies to cardiomyocytes but not to neuronal cells (with much shorter APs). Furthermore, we demonstrate the cell-specific use of ChR2 current as a unique modulator of intrinsic activity, allowing for optical control of AP duration in atrial and, to a lesser degree, in ventricular myocytes. For self-oscillatory cells, such as Purkinje, constant light at extremely low irradiance can be used for fine control of oscillatory frequency, whereas constant electrical stimulation

  11. Targeting the Kids: Insights into the Practice of Marketing Research.

    Science.gov (United States)

    Bezaire, Kimberley

    1999-01-01

    Focuses on business and market research as areas that increasingly affect students and education. Notes that the children's market is big business; that the potential for marketing a wide range of children's products is increasing; and that the types of research being conducted by marketing firms include using schools. (DLH)

  12. Wholesale markets. Electricity, Natural Gas and CO2 markets Observatory - 3. Quarter 2014

    International Nuclear Information System (INIS)

    2014-09-01

    The wholesale markets Observatory aims to provide general monitoring indicators of electricity, natural gas and CO 2 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 Quarter. The indicators (main dates, key Graphs and graphs) are detailed in the second part

  13. Wholesale markets. Electricity, Natural Gas and CO2 markets Observatory - 1. Quarter 2015

    International Nuclear Information System (INIS)

    2015-03-01

    The wholesale markets Observatory aims to provide general monitoring indicators of electricity, natural gas and CO 2 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 Quarter. The indicators (main dates, key Graphs and graphs) are detailed in the second part

  14. Wholesale markets. Electricity, Natural Gas and CO2 markets Observatory - 4. Quarter 2015

    International Nuclear Information System (INIS)

    2015-12-01

    The wholesale markets Observatory aims to provide general monitoring indicators of electricity, natural gas and CO 2 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 Quarter. The indicators (main dates, key Graphs and graphs) are detailed in the second part

  15. Wholesale markets. Electricity, Natural Gas and CO2 markets Observatory - 2. Quarter 2014

    International Nuclear Information System (INIS)

    2014-06-01

    The wholesale markets Observatory aims to provide general monitoring indicators of electricity, natural gas and CO 2 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 Quarter. The indicators (main dates, key Graphs and graphs) are detailed in the second part

  16. Wholesale markets. Electricity, Natural Gas and CO2 markets Observatory - 2. Quarter 2015

    International Nuclear Information System (INIS)

    2015-06-01

    The wholesale markets Observatory aims to provide general monitoring indicators of electricity, natural gas and CO 2 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 Quarter. The indicators (main dates, key Graphs and graphs) are detailed in the second part

  17. Wholesale markets. Electricity, Natural Gas and CO2 markets Observatory - 3. Quarter 2015

    International Nuclear Information System (INIS)

    2015-09-01

    The wholesale markets Observatory aims to provide general monitoring indicators of electricity, natural gas and CO 2 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 Quarter. The indicators (main dates, key Graphs and graphs) are detailed in the second part

  18. Wholesale markets. Electricity, Natural Gas and CO2 markets Observatory - 4. Quarter 2014

    International Nuclear Information System (INIS)

    2014-12-01

    The wholesale markets Observatory aims to provide general monitoring indicators of electricity, natural gas and CO 2 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 Quarter. The indicators (main dates, key Graphs and graphs) are detailed in the second part

  19. Wholesale markets. Electricity, Natural Gas and CO2 markets Observatory - 3. Quarter 2013

    International Nuclear Information System (INIS)

    2013-09-01

    The objective of this wholesale markets Observatory is to provide general monitoring indicators of electricity, natural gas and CO 2 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 Quarter. The indicators (main dates, key figures and graphs) are detailed in the second part

  20. Wholesale markets. Electricity, Natural Gas and CO2 markets Observatory - 4. Quarter 2013

    International Nuclear Information System (INIS)

    2013-12-01

    The objective of this wholesale markets Observatory is to provide general monitoring indicators of electricity, natural gas and CO 2 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 Quarter. The indicators (main dates, key figures and graphs) are detailed in the second part

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

    International Nuclear Information System (INIS)

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

    2000-01-01

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

  2. Security of Supply in Australia's National Electricity Market

    International Nuclear Information System (INIS)

    Roberts, Sebastian

    2005-06-01

    This paper discusses the experience with an energy-only market in Australia, focusing on investment and price outcomes since market commencement. Looking back at the changes in the market since it commenced in 1998, it is fair to say that the energy-only market design has been a success so far. Demand has increased steadily, but this has been matched with new investment in generation and networks. The availability and efficiency of existing plant has also increased substantially. As a result of these gains, prices have come down and are less volatile, and the reliability and security of the market has been consolidated. Compared with 1989-90, the industry delivered more electricity (an increase of 45 per cent), to more customers (an increase of 26 per cent), and with less than half the number of employees. Industrial and residential energy users have enjoyed decreased prices, thanks to a combination of increased generation and network investment, and greater competition. Despite these successes, there is scope for further reform of the NEM to aid further improvements in the market's performance. We have seen how successful the energy-only market has been in signalling new investment in peaking generation, but there is still a question as to the effectiveness of the market in signalling baseload investment. In any case, future challenges will involve ensuring that market arrangements are conducive to new investment. Indeed, following recent reviews of the Australian energy market by Australian statutory bodies, there is a consensus view that the further reform is required to improve investment signals. The 2002 Review of Australian Energy Markets recommended structural reform of the New South Wales electricity industry and the removal of ETEF. In February this year, the Productivity Commission recommended disaggregation of the generation sector in New South Wales, and took the further step of recommending that the New South Wales government should consider

  3. 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

  4. Dynamic Interaction between Cap & Trade and Electricity Markets

    Science.gov (United States)

    Jeev, Kumar

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

  5. Analyses of demand response in Denmark[Electricity market

    Energy Technology Data Exchange (ETDEWEB)

    Moeller Andersen, F.; Grenaa Jensen, S.; Larsen, Helge V.; Meibom, P.; Ravn, H.; Skytte, K.; Togeby, M.

    2006-10-15

    Due to characteristics of the power system, costs of producing electricity vary considerably over short time intervals. Yet, many consumers do not experience corresponding variations in the price they pay for consuming electricity. The topic of this report is: are consumers willing and able to respond to short-term variations in electricity prices, and if so, what is the social benefit of consumers doing so? Taking Denmark and the Nord Pool market as a case, the report focuses on what is known as short-term consumer flexibility or demand response in the electricity market. With focus on market efficiency, efficient allocation of resources and security of supply, the report describes demand response from a micro-economic perspective and provides empirical observations and case studies. The report aims at evaluating benefits from demand response. However, only elements contributing to an overall value are presented. In addition, the analyses are limited to benefits for society, and costs of obtaining demand response are not considered. (au)

  6. Efficient pricing and investment in electricity markets with intermittent resources

    International Nuclear Information System (INIS)

    Chao, Hung-po

    2011-01-01

    Facing growing technological and environmental challenges, the electricity industry needs effective pricing mechanism to promote efficient risk management and investment decisions. In a restructured electricity market with competitive wholesale prices and traditionally regulated retail rates, however, there are technical and institutional barriers that prevent dynamic pricing with price responsive demand. In regions with limited energy storage capacity, intermittent renewable resources present special challenges. This could adversely affect the effectiveness of public policies causing inefficient investments in energy technologies. In this paper, we present an updated economic model of pricing and investment in restructured electricity market and use the model in a simulation study for an initial assessment of renewable energy strategy and alternative pricing mechanisms. A key objective of the study is to shed light on the policy issues so that effective decisions can be made to improve efficiency. - Highlights: → Renewable resources present special challenges in regions with limited energy storage capacity. → This paper presents an updated economic model of pricing and investment in restructured electricity market. → A simulation study assesses renewable energy strategy and alternative pricing mechanisms. → The study results inform policy decisions to improve efficient investments in energy technologies.

  7. Market potential for non-electric applications of nuclear energy

    International Nuclear Information System (INIS)

    2002-01-01

    The objective of this report is to assess the market potential for the non-electric applications of nuclear energy in the near (before 2020) and long (2020-2050) terms. The main non-electric applications are defined here as district heating, desalination (of sea, brackish and waste water), industrial heat supply, ship propulsion and the energy supply for spacecraft. This report is principally devoted to these applications, although a less detailed assessment of some innovative applications (e.g. hydrogen production and coal gasification) is also provided. While the technical details of these applications are covered briefly, emphasis is placed on the economic and other factors that may promote or hinder the penetration of the nuclear option into the market for non-electric energy services. The report is intentionally targeted towards expected demands. It is for this reason that its sections are structured by demand categories and not according to possible reactor types. At the same time, the orientation on the demand side can result in overlaps at the supply side, because the same nuclear reactor can often serve more than one type of demand. Such cases are noted as appropriate. Each section characterizes a specific non-electric application in terms of its market size, its prospects for nuclear technologies and the economic competitiveness of the technologies

  8. Competitive electricity markets, prices and generator entry and exit

    Science.gov (United States)

    Ethier, Robert George

    The electric power industry in the United States is quickly being deregulated and restructured. In the past, new electric generation capacity was added by regulated utilities to meet forecasted demand levels and maintain reserve margins. With competitive wholesale generation, investment will be the responsibility of independent private investors. Electricity prices will assume the coordinating function which has until recently been the responsibility of regulatory agencies. Competitive prices will provide the entry and exit signals for generators in the future. Competitive electricity markets have a distinctive price formation process, and thus require a specialized price model. A mean-reverting price process with stochastic jumps is proposed as an appropriate long-run price process for annual electricity prices. This price process is used to develop an analytic real options model for private investment decisions. The required recursive infinite series solutions have not been widely used for real option models. Entry thresholds and asset values for competitive wholesale electricity markets, and exit decisions for plants with significant retirement costs (i.e. nuclear power plants), are examined. The proposed model results in significantly lower trigger prices for both entry and exit decisions, and higher asset values, when compared with other standard models. The model is used to show that the incentives for retiring a nuclear plant are very sensitive to the treatment of decommissioning costs (e.g. if plant owners do not face full decommissioning costs, retirement decisions may be economically premature.) An econometric model of short-run price behavior is estimated by the method of maximum likelihood using daily electricity prices from markets in the USA and Australia. The model specifies two mean reverting price processes with stochastic Markov switching between the regimes, which allows discontinuous jumps in electricity prices. Econometric tests show that a two

  9. Section 1603 Treasury Grant Expiration. Industry Insight on Financing and Market Implications

    Energy Technology Data Exchange (ETDEWEB)

    Mendelsohn, Michael [National Renewable Energy Lab. (NREL), Golden, CO (United States); Harper, John [Birch Tree Capital, LLC, Framingham, MA (United States)

    2012-06-01

    In the wake of the 2008-2009 financial crises, tax equity investors largely withdrew from the market, resulting in stagnation of project development. In response, Congress established the Treasury grant program pursuant to Section 1603 of the American Recovery and Reinvestment Act (Section 1603 Program) to offer a cash payment in lieu of a production and investment tax credit. This study addresses the likely project financing and market impacts from the expiration of the Section 1603 Program. The authors assembled an array of insights offered by financial executives active in the renewable energy (RE) market during conference panel discussions and in presentations, direct interviews, and email correspondences. This analysis found that the Section 1603 Program alleviated the need to monetize the tax credit incentives through specialized investors, helped lower the transaction and financing costs associated with renewable electricity projects, and generally supported an extensive build-out of renewable power generation capacity. With the expiration of the Section 1603 Program, smaller or less-established renewable power developers will have more difficulty attracting needed financial capital and completing their projects, development of projects relying on newer or 'innovative' technologies will likely slow as traditional tax equity investors are known to be highly averse to technology risk in the projects they fund, and, finally, projects relying on tax equity may be more expensive to develop due to higher transaction costs and potentially higher yields required to attract tax equity.

  10. Section 1603 Treasury Grant Expiration: Industry Insight on Financing and Market Implications

    Energy Technology Data Exchange (ETDEWEB)

    Mendelsohn, M.; Harper, J.

    2012-06-01

    In the wake of the 2008-2009 financial crises, tax equity investors largely withdrew from the market, resulting in stagnation of project development. In response, Congress established the Treasury grant program pursuant to Section 1603 of the American Recovery and Reinvestment Act (..Section..1603 Program) to offer a cash payment in lieu of a production and investment tax credit. This study addresses the likely project financing and market impacts from the expiration of the ..Section..1603 Program. The authors assembled an array of insights offered by financial executives active in the renewable energy (RE) market during conference panel discussions and in presentations, direct interviews, and email correspondences. This analysis found that the ..Section..1603 Program alleviated the need to monetize the tax credit incentives through specialized investors, helped lower the transaction and financing costs associated with renewable electricity projects, and generally supported an extensive build-out of renewable power generation capacity. With the expiration of the ..Section..1603 Program, smaller or less-established renewable power developers will have more difficulty attracting needed financial capital and completing their projects, development of projects relying on newer or 'innovative' technologies will likely slow as traditional tax equity investors are known to be highly averse to technology risk in the projects they fund, and, finally, projects relying on tax equity may be more expensive to develop due to higher transaction costs and potentially higher yields required to attract tax equity.

  11. Improving the competitiveness of Alberta's retail electricity market

    International Nuclear Information System (INIS)

    2002-03-01

    Navigant Consulting Limited (Navigant) was commissioned by Alberta Energy to provide an independent review of the issues and recommendations contained in the Report of the Retail Issues Subcommittee, published in September 2001, on the Alberta Retail Electricity Markets. It was also asked to identify and other significant issues, and making recommendations pertaining to the issues. The principles of a well-functioning retail market followed an introduction to the document. A definition of a competitive market, according to that used by the Retail Issues Subcommittee (RIS) was provided, and a discussion of each of the elements of such a market was included. Highlights from the United Kingdom retail electricity market were provided. A detailed discussion of each of the major issues identified in the RIS report was presented, and recommendations on each topic areas from the RIS report included. The expected impact of the recommendations was explored. A summary of the recommendations and implementation considerations was provided in the last section of the document. tabs., figs

  12. Bayesian Analysis of Demand Elasticity in the Italian Electricity Market

    Directory of Open Access Journals (Sweden)

    Maria Chiara D'Errico

    2015-09-01

    Full Text Available The liberalization of the Italian electricity market is a decade old. Within these last ten years, the supply side has been extensively analyzed, but not the demand side. The aim of this paper is to provide a new method for estimation of the demand elasticity, based on Bayesian methods applied to the Italian electricity market. We used individual demand bids data in the day-ahead market in the Italian Power Exchange (IPEX, for 2011, in order to construct an aggregate demand function at the hourly level. We took into account the existence of both elastic and inelastic bidders on the demand side. The empirical results show that elasticity varies significantly during the day and across periods of the year. In addition, the elasticity hourly distribution is clearly skewed and more so in the daily hours. The Bayesian method is a useful tool for policy-making, insofar as the regulator can start with a priori historical information on market behavior and estimate actual market outcomes in response to new policy actions.

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

    Science.gov (United States)

    Wu, Zhiyong (Richard)

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

  14. Reliability payments to generation capacity in electricity markets

    International Nuclear Information System (INIS)

    Olsina, Fernando; Pringles, Rolando; Larisson, Carlos; Garcés, Francisco

    2014-01-01

    Electric power is a critical input to modern economies. Generation adequacy and security of supply in power systems running under competition are currently topics of high concern for consumers, regulators and governments. In a market setting, generation investments and adequacy can only be achieved by an appropriate regulatory framework that sets efficient remuneration to power capacity. Theoretically, energy-only electricity markets are efficient and no additional mechanism is needed. Nonetheless, the energy-only market design suffers from serious drawbacks. Therefore, jointly with the evolution of electricity markets, many remunerating mechanisms for generation capacity have been proposed. Explicit capacity payment was the first remunerating approach implemented and perhaps still the most applied. However, this price-based regulation has been applied no without severe difficulties and criticism. In this paper, a new reliability payment mechanism is envisioned. Capacity of each generating unit is paid according to its effective contribution to overall system reliability. The proposed scheme has many attractive features and preserves the theoretical efficiency properties of energy-only markets. Fairness, incentive compatibility, market power mitigation and settlement rules are investigated in this work. The article also examines the requirements for system data and models in order to implement the proposed capacity mechanism. A numerical example on a real hydrothermal system serves for illustrating the practicability of the proposed approach and the resulting reliability payments to the generation units. - Highlights: • A new approach for remunerating supply reliability provided by generation units is proposed. • The contribution of each generating unit to lessen power shortfalls is determined by simulations. • Efficiency, fairness and incentive compatibility of the proposed reliability payment are assessed

  15. Fast Change Point Detection for Electricity Market Analysis

    Energy Technology Data Exchange (ETDEWEB)

    Berkeley, UC; Gu, William; Choi, Jaesik; Gu, Ming; Simon, Horst; Wu, Kesheng

    2013-08-25

    Electricity is a vital part of our daily life; therefore it is important to avoid irregularities such as the California Electricity Crisis of 2000 and 2001. In this work, we seek to predict anomalies using advanced machine learning algorithms. These algorithms are effective, but computationally expensive, especially if we plan to apply them on hourly electricity market data covering a number of years. To address this challenge, we significantly accelerate the computation of the Gaussian Process (GP) for time series data. In the context of a Change Point Detection (CPD) algorithm, we reduce its computational complexity from O($n^{5}$) to O($n^{2}$). Our efficient algorithm makes it possible to compute the Change Points using the hourly price data from the California Electricity Crisis. By comparing the detected Change Points with known events, we show that the Change Point Detection algorithm is indeed effective in detecting signals preceding major events.

  16. A local energy market for electricity and hydrogen

    DEFF Research Database (Denmark)

    Xiao, Yunpeng; Wang, Xifan; Pinson, Pierre

    2017-01-01

    The proliferation of distributed energy resources entails efficient market mechanisms in distribution-level networks. This paper establishes a local energy market (LEM) framework in which electricity and hydrogen are traded. Players in the LEM consist of renewable distributed generators (DGs......), loads, hydrogen vehicles (HVs), and a hydrogen storage system (HSS) operated by a HSS agent (HSSA). An iterative LEM clearing method is proposed based on the merit order principle. Players submit offers/bids with consideration of their own preferences and profiles according to the utility functions...

  17. 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

  18. A game theoretic model of the Northwestern European electricity market. Market power and the environment

    International Nuclear Information System (INIS)

    Wietze, L.; Linderhof, V.; Kuik, O.; Kemfert, C.; Oestling, R.; Heinzow, T.

    2006-10-01

    This paper develops a static computational game theoretic model. Illustrative results for the liberalising European electricity market are given to demonstrate the type of economic and environmental results that can be generated with the model. The model is empirically calibrated to eight Northwestern European countries, namely Belgium, Denmark, Finland, France, Germany, The Netherlands, Norway, and Sweden. Different market structures are compared, depending on the ability of firms to exercise market power, ranging from perfect competition without market power to strategic competition where large firms exercise market power. In addition, a market power reduction policy is studied where the near-monopolies in France and Belgium are demerged into smaller firms. To analyse environmental impacts, a fixed greenhouse gas emission reduction target is introduced under different market structures. The results indicate that the effects of liberalisation depend on the resulting market structure, but that a reduction in market power of large producers may be beneficial for both the consumer (i.e. lower prices) and the environment (i.e. lower greenhouse gas permit price and lower acidifying and smog emissions)

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

    International Nuclear Information System (INIS)

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

    2006-01-01

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

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

    International Nuclear Information System (INIS)

    Singh, Balbir

    2004-01-01

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

  1. Econometric analysis of Australian emissions markets and electricity prices

    International Nuclear Information System (INIS)

    Cotton, Deborah; De Mello, Lurion

    2014-01-01

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

  2. Reinforcement Learning Based on the Bayesian Theorem for Electricity Markets Decision Support

    DEFF Research Database (Denmark)

    Sousa, Tiago; Pinto, Tiago; Praca, Isabel

    2014-01-01

    proposed in this paper uses a Bayesian network for deciding the most probably successful action at each time, depending on past events. The performance of the proposed methodology is tested using electricity market simulations in MASCEM (Multi-Agent Simulator of Competitive Electricity Markets). MASCEM......-agent system that has the purpose of providing decision support to electricity market negotiating players. ALBidS uses a set of different strategies for providing decision support to market players. These strategies are used accordingly to their probability of success for each different context. The approach...... provides the means for simulating a real electricity market environment, based on real data from real electricity market operators...

  3. Complementarity models of competitive oligopolistic electric power generation markets

    Science.gov (United States)

    Metzler, Carolyn Burr

    2000-10-01

    This dissertation examines a number of different models of a competitive power market. We first give an overview of the structure of a power market and how deregulation plays a role. After a brief survey of literature and introductory mathematical background, we introduce variational inequalities in the context of the Nash equilibrium problem and discuss an extension of this problem. As in the Nash. equilibrium problem, there is a given set of players; in the extension, we add a market clearing condition. This extension can also be modeled as a variational inequality (VI) and applies directly to the models that are presented in the later chapters. In Chapter 3, we discuss the special physical properties of electricity. These properties, which are unique to an electric power network, allow us to reduce the size and complexity of our models significantly. In Chapters 4 and 5, we introduce and discuss the power models. In Chapter 4, we consider a Cournot oligopolistic market, in which all firms play an equally competitive role in the market. We introduce arbitrage into the market and see how that affects the models. All of the models in Chapter 4 can be stated as linear or mixed linear complementarity problems. We prove existence and uniqueness results for each of the models. We also give a comparison of the models. In Chapter 5, we consider an oligopolistic market in which there are dominant firms. In these models, we examine more carefully the bid selection process supervised by the independent system operator (ISO). The case where there is one dominant firm can be modeled as a mathematical program with equilibrium constraints (MPEC). We describe an interior point algorithm to solve this problem. We also consider the case of two dominant firms, and present numerical results for both of these cases.

  4. Markets and policy measures in the evolution of electric mobility

    CERN Document Server

    Hülsmann, Michael

    2016-01-01

    This edited monograph collects theoretical, empirical and political contributions from different fields, focusing on the commercial launch of electric mobility, and intending to shed more light on the complexity of supply and demand. It is an ongoing discussion, both in the public as well as in academia, whether or not electric mobility is capable of gaining a considerable market share in the near future. The target audience primarily comprises researchers and practitioners in the field, but the book may also be beneficial for graduate students.

  5. Electric market models, competitive model and alternative design

    International Nuclear Information System (INIS)

    Arnedillo, O.

    2007-01-01

    Almost ten years after the liberalization of the Spanish electric system, its market design has remained basically unchanged. Therefore, it is reasonable to consider whether the current model continues to be adequate or whether it should be changed. However, although the current model is far from the absolute optimum, it is suited to the current state of the Spanish system. Only some improvements, such as the reform of the capacity guarantee payment can be undertaken immediately. It will only be possible to undertake other improvements as distribution companies cover all of their electricity needs in forward contracts acquired through a competitive process. (Author)

  6. Staff Report to the Secretary on Electricity Markets and Reliability

    Energy Technology Data Exchange (ETDEWEB)

    None

    2017-08-01

    Energy Secretary Rick Perry issued a memo in April of 2017 requesting a study and directing his staff to develop a report to include an assessment of the reliability and resilience of the electric grid and an overview of the evolution of electricity markets. Various factors have emerged over the past 15 years which have impacted power supply and demand in different ways. This study, prepared by experts throughout the Department, contains a comprehensive analysis of these factors and the corresponding data, and presents a series of recommendations meant to inform and guide policy makers, regulators, and the general public. Potential areas for further research are also presented.

  7. Electricity market under change - experiences from the US

    International Nuclear Information System (INIS)

    Lannefors, N.

    1995-11-01

    Several US states face a major restructuring of the electric power market with the deregulation. The present report describes this process, in particular the preparations of the utilities and other actors on the market for the reforms. Competition in power production was introduced 1978, and since 1992 some independent power producers have been permitted to sell electric power directly to the customers. These steps have increased pressure on authorities and regional utilities to deregulate and reduce costs. Three main developments are noted among the utilities: Lowered production cost, Selling power with extra options, Offering services outside the traditional distribution area. Other strategies can be diversification, alliances with telephone, computer or software companies which can bring new products

  8. Strategic bidding for load serving entity in electricity markets

    Science.gov (United States)

    AlZahrani, Hashim A.

    The objective of this thesis is to study different options of load serving entities (LSEs) in electricity markets. Two models of pool-based electricity market have been studied. The difference between them is in the effect of transmission constraints. Transmission Constraints are neglected in the first model. Various bidding scenarios are presented in the first model to study the effect of retail, interruptible, and bidding prices on the profit of single LSE utilizing Monte Carlo simulation method. Genetic algorithm optimization tool is used to get the optimal bidding. In the second model, a new approach is presented to study the impact of transmission constraints (TCs) on the profit of LSE and its bidding strategy utilizing IEEE 30 bus system. Different pricing settlements then tested the effects of TCs to investigate the best pricing option. It has been shown that the first rejected bid settlement is the best selection for load serving entity.

  9. Electricity deregulation - impact on gas users and markets

    International Nuclear Information System (INIS)

    Girling, R.

    1995-01-01

    A profile of TransCanada Northridge Power Ltd. (TNPL) was presented. The peculiarities of the market for electricity was described. The topic of focus in this presentation was competition and its effects on producers and consumers of natural gas. It was stated that competition was necessary to stimulate growth. The evolution of competition in the electricity market, existing competition, and future competition were discussed. The effect of competition was that it encouraged producers and consumers to optimize revenue and expense. In the long term, competition was seen as the keystone of free enterprise in that it gives consumers a choice, provides signals for producers and consumers to invest capital, and provides opportunities to understand and respond to historic inefficiencies

  10. 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.

  11. A game theoretic model of the Northwestern European electricity market-market power and the environment

    NARCIS (Netherlands)

    Lise, W.; Linderhof, V.G.M.; Kuik, O.; Kemfert, C.; Ostling, R.; Heinzow, T.

    2006-01-01

    This paper develops a static computational game theoretic model. Illustrative results for the liberalising European electricity market are given to demonstrate the type of economic and environmental results that can be generated with the model. The model is empirically calibrated to eight

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

    International Nuclear Information System (INIS)

    Haselip, James; Potter, Clive

    2010-01-01

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

  13. Stranded cost recovery in electricity market reforms in the US

    International Nuclear Information System (INIS)

    Woo, C.K.; Lloyd, D.; Karimov, R.; Tishler, A.

    2003-01-01

    An important element of an electricity market reform is stranded cost recovery. This paper explains the cause of stranded costs, describes four recovery mechanisms, evaluates these mechanisms using the criteria of recovery certainty, economic efficiency and equity, reviews the financial performance of 12 utilities in the US in connection to stranded cost recovery, and shows why the mechanism used in California has contributed to the reform failure in that state. (Author)

  14. Participation of an Energy Storage Aggregator in Electricity Markets

    OpenAIRE

    Contreras-Ocana, Jesus E.; Ortega-Vazquez, Miguel A.; Zhang, Baosen

    2017-01-01

    An important function of aggregators is to enable the participation of small energy storage units in electricity markets. This paper studies two generally overlooked aspects related to aggregators of energy storage: i) the relationship between the aggregator and its constituent storage units and ii) the aggregator's effect on system welfare. Regarding i), we show that short-term outcomes can be Pareto-inefficient: all players could be better-off. In practice, however, aggregators and storage ...

  15. Toward a domestic electricity market in the EU

    International Nuclear Information System (INIS)

    Syrota, J.

    2001-01-01

    How to promote competition at the EU level so as to break loose from narrow national markets historically dominated by a single utility? This depends on the capacity for physically carrying the electricity of any provider toward any EU consumer... and on doing this under conditions that guarantee safety and quality at a satisfactory cost. It entails making necessary adjustments in the power grid, reinforcing interconnections and uniformizing standards for doing all this. (author)

  16. Transmission investment and expansion planning in a restructured electricity market

    International Nuclear Information System (INIS)

    Wu, F.F; Wen, F.S.; Zheng, F.L.

    2006-01-01

    Transmission planning in a restructured electricity market becomes increasingly complicated. To bridge the gap between economic and engineering considerations, this survey paper suggests a framework to clarify the interactions among various economic and engineering issues by reviewing recent theoretical and practical progress in transmission investment and transmission planning methodology. Thus, the paper makes economic literature more accessible to the engineering community and engineering literature more accessible to the economic community interested in the subject. (author)

  17. Development of services on the electricity market in the USA

    International Nuclear Information System (INIS)

    Augustsson, Kamilla

    1997-10-01

    American electric utilities are developing new services and creating strategic alliances in order to be competitive on a de-regulated market. Separate energy-service companies are created, which offer many services: energy brokers, energy auditing, out-sourcing of energy supply, control of energy bills and information- and communication-services. The report describes how the utilities prepare for the deregulation and what type of services are offered to commercial and industry customers 21 refs, 10 figs

  18. Locational electricity capacity markets: Alternatives to restore the missing signals

    Energy Technology Data Exchange (ETDEWEB)

    Nieto, Amparo D.; Fraser, Hamish

    2007-03-15

    In the absence of a properly functioning electricity demand side, well-designed capacity payment mechanisms hold more promise for signaling the value of capacity than non-CPM alternatives. Locational CPMs that rely on market-based principles, such as forward capacity auctions, are superior to cost-based payments directed to specific must-run generators, as CPMs at least provide a meaningful price signal about the economic value of resources to potential investors. (author)

  19. 77 FR 11515 - Application to Export Electric Energy; NRG Power Marketing LLC

    Science.gov (United States)

    2012-02-27

    ... Application to Export Electric Energy; NRG Power Marketing LLC AGENCY: Office of Electricity Delivery and Energy Reliability, DOE. ] ACTION: Notice of application. SUMMARY: NRG Power Marketing LLC (NRGPML) has... would be surplus energy purchased from electric utilities and Federal power marketing agencies within...

  20. 75 FR 75994 - Application To Export Electric Energy; NRG Power Marketing LLC

    Science.gov (United States)

    2010-12-07

    ... Marketing LLC AGENCY: Office of Electricity Delivery and Energy Reliability, DOE. ACTION: Notice of application. SUMMARY: NRG Power Marketing LLC (NRGPML) has applied to renew its authority to transmit electric... to Canada would be surplus energy purchased from electric utilities, Federal power marketing agencies...