Study on economic potential of nuclear-gas combined cycle power generation in Chinese market

International Nuclear Information System (INIS)

Zhou Zhiwei; Bian Zhiqiang; Yang Mengjia

2004-01-01

Facing the challenges of separation of electric power plant and grid, and the deregulation of Chinese electricity supplying market in near future, nuclear power plants mainly operated as based load at the present regulated market should look for new operation mode. The economics of electric generation with nuclear-natural gas combined cycle is studied based on current conditions of natural gas and nuclear power plants in China. The results indicate that the technology development of nuclear-natural gas combined cycle for power generation is of potential prospects in Chinese electric market. (authors)

Competitive positioning of power generation plants in a deregulated market

International Nuclear Information System (INIS)

Stephens, J.

1998-01-01

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

Green Certificates and Market Power on the Nordic Power Market

International Nuclear Information System (INIS)

Bergman, Lars; Amundsen, Eirik S

2007-06-01

In Sweden a market for Tradable Green Certificates (TGCs) was introduced in 2003. The purpose was to stimulate investments in electricity generation based on renewable energy sources without using direct governmental subsidies to renewable energy. More precisely the aim is to create a market where different types of renewable electricity can compete on equal terms, thus relieving governments and public agencies from being directly involved in power industry investment decisions. The purpose of this study is to elucidate under which circumstances, how, and to what extent market power in the TGC market can be used to affect the entire electricity market. There are basically two reasons for being concerned with market power in TGC markets. The first is the fact that the industry average cost curve for 'green' electricity tends to be upward sloping. This is because the cost of wind power, the main source of green electricity, depends on the location of the power plants, and that the availability of first rate sites that do not involve sizable investments in new transmission and network infrastructure, is limited. The situation is similar for environmentally friendly hydro power, and, to some extent, for other types of 'green' electricity. Thus, given the state of technology and an upper cost limit, there is a maximum amount of 'green' electricity that can be produced within a country. This means that some generators, by getting access to the suitable sites, will become dominating producers of 'green' electricity and thus may be able to exercise market power in the TGC market. The second reason for being concerned with market power in a TGC market is that, as a result of the percentage requirement, the withdrawal of a given number of TGCs from the market forces a much larger reduction of electricity consumption. Thus relatively modest exercise of market power in the TGC market may have a significant impact on the price of electricity and the allocation of resources in

Short-term optimal wind power generation capacity in liberalized electricity markets

International Nuclear Information System (INIS)

Olsina, Fernando; Roescher, Mark; Larisson, Carlos; Garces, Francisco

2007-01-01

Mainly because of environmental concerns and fuel price uncertainties, considerable amounts of wind-based generation capacity are being added to some deregulated power systems. The rapid wind development registered in some countries has essentially been driven by strong subsidizing programs. Since wind investments are commonly isolated from market signals, installed wind capacity can be higher than optimal, leading to distortions of the power prices with a consequent loss of social welfare. In this work, the influence of wind generation on power prices in the framework of a liberalized electricity market has been assessed by means of stochastic simulation techniques. The developed methodology allows investigating the maximal wind capacity that would be profitably deployed if wind investments were subject to market conditions only. For this purpose, stochastic variables determining power prices are accurately modeled. A test system resembling the size and characteristics of the German power system has been selected for this study. The expected value of the optimal, short-term wind capacity is evaluated for a considerable number of random realizations of power prices. The impact of dispersing the wind capacity over statistical independent wind sites has also been evaluated. The simulation results reveal that fuel prices, installation and financing costs of wind investments are very influential parameters on the maximal wind capacity that might be accommodated in a market-based manner

Wind Generators and Market Power

DEFF Research Database (Denmark)

Misir, Nihat

price thresholds are significantly higher when the monopolist at the peakload level owns both types of generators. Furthermore, when producing electricity with the peakload generator, the monopolist can avoid facing prices below marginal cost by owning a certain share of the wind generators.......Electricity production from wind generators holds significant importance in European Union’s 20% renewable energy target by 2020. In this paper, I show that ownership of wind generators affects market outcomes by using both a Cournot oligopoly model and a real options model. In the Cournot...... oligopoly model, ownership of the wind generators by owners of fossil-fueled (peakload) generators decreases total peakload production and increases the market price. These effects increase with total wind generation and aggregate wind generator ownership. In the real options model, start up and shut down...

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

DEFF Research Database (Denmark)

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

2010-01-01

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

Power generation scheduling. A free market based procedure with reserve constraints included

International Nuclear Information System (INIS)

Huse, Einar Staale

1998-01-01

This thesis deals with the short-term scheduling of electric power generation in a competitive market. This involves determination of start-ups and shut-downs, and production levels of all units in all hours of the optimization period, considering unit characteristics and system restrictions. The unit characteristics and restrictions handled are minimum and maximum production levels, fuel cost function, start-up costs, minimum up time and minimum down time. The system restrictions handled are power balance (supply equals demand in all hours) and spinning reserve requirement. The thesis has two main contributions: (1) A new organization of an hourly electric power market that simultaneously sets the price of both energy and reserve power is proposed. A power exchange is used as a trading place for electricity. Its responsibility is to balance supply and demand bids and to secure enough spinning reserve. Routines for bidding and market clearing are developed. (2) A computer programme that simulates the proposed electricity market has been implemented. The program can also be used as a new method for solving the single owner generation scheduling problem. Simulations show that the performance of the program is excellent. Simulations also show that it is possible to obtain efficient schedules through the proposed electricity market. 37 refs., 20 figs., 15 tabs

Power generation scheduling. A free market based procedure with reserve constraints included

Energy Technology Data Exchange (ETDEWEB)

Huse, Einar Staale

1999-12-31

This thesis deals with the short-term scheduling of electric power generation in a competitive market. This involves determination of start-ups and shut-downs, and production levels of all units in all hours of the optimization period, considering unit characteristics and system restrictions. The unit characteristics and restrictions handled are minimum and maximum production levels, fuel cost function, start-up costs, minimum up time and minimum down time. The system restrictions handled are power balance (supply equals demand in all hours) and spinning reserve requirement. The thesis has two main contributions: (1) A new organization of an hourly electric power market that simultaneously sets the price of both energy and reserve power is proposed. A power exchange is used as a trading place for electricity. Its responsibility is to balance supply and demand bids and to secure enough spinning reserve. Routines for bidding and market clearing are developed. (2) A computer programme that simulates the proposed electricity market has been implemented. The program can also be used as a new method for solving the single owner generation scheduling problem. Simulations show that the performance of the program is excellent. Simulations also show that it is possible to obtain efficient schedules through the proposed electricity market. 37 refs., 20 figs., 15 tabs.

Power generation scheduling. A free market based procedure with reserve constraints included

Energy Technology Data Exchange (ETDEWEB)

Huse, Einar Staale

1998-12-31

This thesis deals with the short-term scheduling of electric power generation in a competitive market. This involves determination of start-ups and shut-downs, and production levels of all units in all hours of the optimization period, considering unit characteristics and system restrictions. The unit characteristics and restrictions handled are minimum and maximum production levels, fuel cost function, start-up costs, minimum up time and minimum down time. The system restrictions handled are power balance (supply equals demand in all hours) and spinning reserve requirement. The thesis has two main contributions: (1) A new organization of an hourly electric power market that simultaneously sets the price of both energy and reserve power is proposed. A power exchange is used as a trading place for electricity. Its responsibility is to balance supply and demand bids and to secure enough spinning reserve. Routines for bidding and market clearing are developed. (2) A computer programme that simulates the proposed electricity market has been implemented. The program can also be used as a new method for solving the single owner generation scheduling problem. Simulations show that the performance of the program is excellent. Simulations also show that it is possible to obtain efficient schedules through the proposed electricity market. 37 refs., 20 figs., 15 tabs.

Market power monitoring and mitigation in the US wholesale power markets

Energy Technology Data Exchange (ETDEWEB)

Helman, Udi [Federal Energy Regulatory Commission, 888 First Street, N.E., Washington, DC 20426 (United States)

2006-05-15

Under current statutory requirements, the Federal Energy Regulatory Commission (FERC) must ensure that prices in US wholesale power markets are 'just and reasonable'. This has been interpreted by the agency and the courts as requiring the monitoring and mitigation of undue market power. This paper focuses on generation market power. Prior to electricity sector restructuring, wholesale bilateral power trading took place among vertically integrated monopoly utilities trading at the margin or between small independent producers and the utilities. Under those conditions, the authorization of trading at market prices, called 'market-based rates', required only that the generation supplier pass a simple market share screen for market power. As restructuring unfolded, and market conditions changed, there has been a steady evolution in FERC's market power mitigation rules, encompassing (a) changes in the market power assessment required for granting market-based rates and related methods for merger approval, and (b) development and refinement of new techniques for screening and mitigating offers into the organized day-ahead and real-time markets operated by Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs). This paper reviews these changes to date, as FERC continues to clarify its approved rules and procedures. It also examines recent methods for quantitative market power analysis that could augment current procedures or supplant them, as found appropriate. (author)

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

Science.gov (United States)

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

2017-10-01

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

Distributed generation hits market

International Nuclear Information System (INIS)

Anon.

1997-01-01

The pace at which vendors are developing and marketing gas turbines and reciprocating engines for small-scale applications may signal the widespread growth of distributed generation. Loosely defined to refer to applications in which power generation equipment is located close to end users who have near-term power capacity needs, distributed generation encompasses a broad range of technologies and load requirements. Disagreement is inevitable, but many industry observers associate distributed generation with applications anywhere from 25 kW to 25 MW. Ten years ago, distributed generation users only represented about 2% of the world market. Today, that figure has increased to about 4 or 5%, and probably could settle in the 20% range within a 3-to-5-year period, according to Michael Jones, San Diego, Calif.-based Solar Turbines Inc. power generation marketing manager. The US Energy Information Administration predicts about 175 GW of generation capacity will be added domestically by 2010. If 20% comes from smaller plants, distributed generation could account for about 35 GW. Even with more competition, it's highly unlikely distributed generation will totally replace current market structures and central stations. Distributed generation may be best suited for making market inroads when and where central systems need upgrading, and should prove its worth when the system can't handle peak demands. Typical applications include small reciprocating engine generators at remote customer sites or larger gas turbines to boost the grid. Additional market opportunities include standby capacity, peak shaving, power quality, cogeneration and capacity rental for immediate demand requirements. Integration of distributed generation systems--using gas-fueled engines, gas-fired combustion engines and fuel cells--can upgrade power quality for customers and reduce operating costs for electric utilities

Modeling market power in Korea's emerging power market

International Nuclear Information System (INIS)

Ahn, Nam-sung; Niemeyer, Victor

2007-01-01

The Korean power market is being formed from the unbundled generation, transmission and distribution assets of Korea Electric Power Corporation. The KEPCO generation has been allocated to six independent gencos with a combined generating capacity of 46,629 MW in 2002. This gave an 11% margin over the peak load that year (41,921 MW). One of the concerns for any power market is whether individual participants can increase profits (and prices) by withholding generation from the market. To address this concern, a Cournot-based model of Korean power system was created and applied to a set of loads representing the load duration curve for Korea's system loads in 2002. Our simulation results show a strong possibility for exercise of market power to increase market price in Korean market. Under tight market conditions, even 1 GW of withholding can cause a large increase in market price. If loads unexpectedly grow faster than the 5% recent experience, the gencos will have the collective ability and incentive to spike prices further. Vesting contracts can reduce the incentive to act strategically. Requiring that the gencos offer 50% of their capacity in long-term forward contracts greatly reduces the payoff to act strategically, and requiring vesting for 75% of their capacity results in prices that are essentially the same as the competitive equilibrium. Depending on the price for the vesting contracts, this policy can reduce the incentives to add new generation by gencos or the competitive fringe. Another approach to reducing the effects of market power is establishing demand-response programs, simulated here by increasing the elasticity of overall demand. These programs can reduce the incentives to withhold capacity, but to a lesser degree than vesting contracts. The genco with the greatest ability to influence prices through withholding is the largest, KNHP. However, acting on its own, without the support of the other gencos, its ability to raise prices is limited. This

Will cross-ownership reestablish market power in the Nordic power market?

International Nuclear Information System (INIS)

Amundsen, Eirik S.; Bergman, Lars

2000-01-01

The integration of the power markets in Norway and Sweden in 1996 significantly constrained the major power companies' ability to exercise market power within their national borders. In recent years, however, mergers and reciprocal acquisition of shares have reduced the number of independent players on the Norwegian-Swedish power market. The aim of this paper is to explore to what extent increasing cross-ownership among major power companies in Norway and Sweden might re-establish the market power that was lost when the two national power markets were integrated. The analysis is based on a numerical model, assuming Cournot quantity setting behaviour, of the Norwegian-Swedish power market. The simulation results suggest that partial ownership relations between major generators and other power-producing firms tend to increase horizontal market power and thus the market price of electricity. (author)

Market value of wind power

NARCIS (Netherlands)

Haan, de J.E.S.; Shoeb, M.A.; Lopes Ferreira, H.M.; Kling, W.L.

2013-01-01

Variability and predictability constraints of wind hinder the cost-efficient integration of wind power generation into power markets. Within the framework of EIT KIC INNOENERGY Offwindtech project, a ‘Market Value’ tool is developed. Here, the market value of wind power generation can be assessed

World nuclear power generation market and prospects of industry reorganization

International Nuclear Information System (INIS)

Murakami, Tomoko

2007-01-01

In late years there are many trends placing nuclear energy with important energy in various countries in the world due to a remarkable rise to an energy price, importance of energy security and a surge of recognition to a global environment problem. Overseas nuclear industry's acquisition by a Japanese nuclear power plant maker and its capital or business tie-up with an overseas company, were announced in succession in 2006. A nuclear power plant maker has played an extremely important role supporting wide technology in all stages of a design, construction, operation and maintenance in a nuclear power generation business. After having surveyed the recent trend of world nuclear power generation situation, a background and the summary of these acquisition/tie-ups made were investigated and analyzed to consider the influence that movement of such an industry gives a world nuclear power generation market. (T. Tanaka)

78 FR 28835 - Salton Sea Power Generation Company; Supplemental Notice That Initial Market-Based Rate Filing...

Science.gov (United States)

2013-05-16

... DEPARTMENT OF ENERGY Federal Energy Regulatory Commission [Docket No. ER13-1271-000] Salton Sea Power Generation Company; Supplemental Notice That Initial Market-Based Rate Filing Includes Request for... Salton Sea Power Generation Company's application for market-based rate authority, with an accompanying...

The effect of electric transmission constraints on how power generation companies bid in the Colombian electrical power market

Directory of Open Access Journals (Sweden)

Luis Eduardo Gallego Vega

2010-05-01

Full Text Available This paper presents the results of research about the effect of transmission constraints on both expected electrical energy to be dispatched and power generation companies’ bidding strategies in the Colombian electrical power market. The proposed model simulates the national transmission grid and economic dispatch by means of optimal power flows. The proposed methodology allows structural problems in the power market to be analyzed due to the exclusive effect of trans- mission constraints and the mixed effect of bidding strategies and transmission networks. A new set of variables is proposed for quantifying the impact of each generation company on system operating costs and the change in expected dispatched energy. A correlation analysis of these new variables is presented, revealing some interesting linearities in some generation companies’ bidding patterns.

Transmission capacity and market power: the effect on a dominant generation firm

International Nuclear Information System (INIS)

Quick, David M.; Carey, Janis M.

2002-01-01

We examine the effect of transmission on a firm's market power by analyzing the optimal dispatch for a dominant firm in a short-run regional electricity generation market. Application of our research to Colorado shows that the dominant firm can strategically congest transmission into the region to receive a maximum price 54.9% of the time. When it does not get the maximum price, the dominant firm can receive an 11.6% average markup over the competitive price. We show how the threat of entry across an enhanced transmission grid can increase competition and limit market power in Colorado. (Author)

Market power mitigation, monitoring and surveillance in the Ontario electricity market

International Nuclear Information System (INIS)

Barrett, A.

2001-01-01

This power point presentation discussed the meaning of market power and how Ontario Power Generation's market power is one of the most contentious market implementation issues in the deregulation debate. Market power was described as being the ability to profitably maintain prices above competitive levels for a significant period of time. The presentation referred to the key elements of the market power mitigation framework (MPMF) of Ontario and how it strikes a balance between the three major objectives of creating a competitive marketplace, to pay down the stranded debt, and to ensure viable power generation in the province. It was concluded that there will be a viable competitive market in Ontario in the near future, but a pragmatic, fact-based view of the market is needed to allow market forces to work. It was emphasized that markets by nature are unpredictable and volatility does not necessarily means that the market is not working. The author stated that Ontario Power Generation recognized that it is important to coordinate roles and responsibilities to minimize duplication and reduce confusion. tags., figs

Introduction to market power issues

International Nuclear Information System (INIS)

2002-01-01

This paper presents an initial introduction to market power issues in wholesale electric power markets. Market power was described as the ability of sellers to act together to profitably maintain prices above competitive levels for a significant period of time. The two general forms of market power, vertical and horizontal market power, were described with reference to how they may be exercised. The factors that should be considered when evaluating the competitiveness of a market include: (1) market share of suppliers, (2) overall market concentration, (3) elasticity of demand, (4) shape of the industry supply curve, (5) the amount and distribution of excess supply, (6) typical contractual arrangements and the process for establishing prices, and (7) the relative ease to enter the market. It was noted that a narrow market scope allows only wholesale market sector (such as municipal utilities) to access competitive electricity supplies, however, a more expansive definition of market scope would consider the sale of electricity to industrial customers. This would allow more players to enter the Nova Scotia market. The barriers to entry for wholesale electric power markets are: (1) access to the transmission grids and services, (2) sites for new capacity development, (3) major inputs to power generation, (4) transportation of major inputs to generation, and (5) lack of liquidity

Creating markets for combined heat and power and clean distributed generation in New York State

International Nuclear Information System (INIS)

Bourgeois, Thomas G.; Hedman, Bruce; Zalcman, Fred

2003-01-01

Combined heat and power has been indentified as a central component in state and national energy strategy to lower power prices and reduce environmental impacts. - Combined heat and power (CHP) is the simultaneous production of electrical or mechanical power and thermal energy from in a single process. Because thermal output from the generation of electricity is captured and utilized onsite, CHP systems can achieve efficiencies from 60% to as high as 90%. In contrast generation of electric power at sites remote from the loads served often results in efficiencies of 33% or less due to losses in generation and transmission and distribution of the power to ultimate end users. A well designed CHP system is the essence of energy efficiency. It may also provide significant environmental benefits. However, the full promise of CHP for improving the efficiency and productivity of businesses and the quality of the environment is unlikely to be realized given the current market structure and regulatory environment in which CHP projects are forced to compete. This paper examines the market structure and regulatory obstacles that hinder the development of more robust markets for CHP in New York State

VGB congress 'power plants 2003'. Generation gap - risk and challenge for the electricity market

International Nuclear Information System (INIS)

Anon.

2003-01-01

The VGB Congress 'Power Plants 2003' took place in Copenhagen from 15th to 17th September 2003. The motto of this year's Congress was 'Generation Gap - Risk and Challenge for the Electricity Market'. More than 800 participants took the opportunity for discussion and information in the plenary and technical lectures 'Market and Competition' and 'Technology, Operation and Environment'. Apart from the special features of the Scandinavian and Baltic electricity market, the main focus was on papers reflecting the situation of nuclear power (Finland), operating experience with new power plants, new materials for power plant construction, application of renewables and issues of climate protection. The Congress was again rounded off by technical visits and a side programme. (orig.) [de

Assembling Markets for Wind Power

DEFF Research Database (Denmark)

Pallesen, Trine

hand, as an economic good, wind power is said to suffer from (techno-economic) ‘disabilities’, such as high costs, fluctuating and unpredictable generation, etc. Therefore, because of its performance as a good, it is argued that the survival of wind power in the market is premised on different......This project studies the making of a market for wind power in France. Markets for wind power are often referred to as ‘political markets: On the one hand, wind power has the potential to reduce CO2-emissions and thus stall the effects of electricity generation on climate change; and on the other...... instruments, some of which I will refer to as ‘prosthetic devices’. This thesis inquires into two such prosthetic devices: The feed-in tariff and the wind power development zones (ZDE) as they are negotiated and practiced in France, and also the ways in which they affect the making of markets for wind power....

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

International Nuclear Information System (INIS)

McNair, K.; Tivey, B.

1993-01-01

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

Liberation of electric power and nuclear power generation

International Nuclear Information System (INIS)

Yajima, Masayuki

2000-01-01

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

Market design and supply security in imperfect power markets

International Nuclear Information System (INIS)

Schwenen, Sebastian

2014-01-01

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

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.

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

Nuclear position in power generation sector - under the pressure of anti-global warming and power market reform

International Nuclear Information System (INIS)

Hayashi, Taizo

2005-01-01

The future structure surrounding fuel choice in power generation sector should be understood how to evaluate actual and potential merit and demerit both in economic and environmental aspects on nuclear power generation. That is i.e. nuclear can be understood as superior power source without GHGs and on the other hand, as unfavorable power source which might cause some critical dangers due to its hazardous radioactive nuclear waste. On this specific characteristic, this theme on fuel choice surrounding nuclear in power generation sector could be understood as a highly cultural problem as much as economic and political one. For instance, we can observe quite opposite direction with each other on nuclear power development in European countries like France and Finland on one hand and Germany and Sweden on the other hand. Looking at Asian countries, we also observe the very reality of high economic growth with rapid growth of electricity demand like China. What on earth, is it really possible without nuclear power source for such gigantic countries. I will develop my personal idea on nuclear power source based on Japanese experience towards successfully managing nuclear power technologies in the world, consisting of developing countries with growing economies and of advanced ones with rather matured nuclear technology under the pressure of environmentally restricted world order. My basic view point to discuss nuclear power problem has, conclusionally speaking, several aspects; The first one is in the relation with deregulation or liberalization of electricity market, which has been undergoing among such developed countries as OECD member countries i.e. USA, EU, Japan and other countries. Deregulation or liberalization of electricity market seems to be the inevitable process towards more matured market economy among developed countries group, and that process inevitably forces management of power companies towards more near sighted attitude if those companies are

From Market Uncertainty to Policy Uncertainty for Investment in Power Generation: Real Options for NPP on Electricity Market

International Nuclear Information System (INIS)

Tomsic, Zeljko

2014-01-01

In the electricity sector, market participants must make decisions about capacity choice in a situation of radical uncertainty about future market conditions. Sector is normally characterised by non-storability and periodic and stochastic demand fluctuations. In these cases capacity determination is a decision for the long term, whereas production is adjusted in the short run. Capacities need to be installed well in advance (decision for investment even earlier because of long construction time and even longer in case of NPP to prepare all needed legal, financial and physical infrastructure), at times when firms face considerable demand and cost uncertainty when choosing their capacity. Paper looks on the main contributions in investment planning under uncertainty, in particular in the electricity market for capital intensive investments like NPP. The relationship between market and non-market factors (recent UK policy example) in determining investment signals in competitive electricity markets was analysed. Paper analyse the ability of competitive electricity markets to deliver the desired quantity and type of generation capacity and also investigates the variety of market imperfections operating in electricity generation and their impact on long-term dynamics for generation capacity, the most capital-intensive of the liberalised functions in the electricity supply industry. Paper analyses how price formation influences investment signals. Today, investment decisions are made by several operators that act independently. Number of factors (including market power, wholesale price volatility, lack of liquidity in the wholesale and financial market, policy and regulatory risks etc.) contribute to polluting the price signal and generating sub-optimal behaviour. Climate change policies can easily distort market signals, insulating renewables generation from market dynamics. This in turn reduces the proportion of the market that is effectively opened to competitive

Renewable energies for power generation

International Nuclear Information System (INIS)

Freris, L.; Infield, D.

2009-01-01

Power generation from renewable energy sources is different from power generation from classical energies (nuclear, thermal..). Therefore, the integration into the grid of the electricity supplied by renewable sources requires a deep thinking. The reason is that these power sources are controlled by variable elements, like wind, water and sun, which condition production. This book deals with the following aspects in detail: characteristics of classical and intermittent generators; grid balancing between supply and demand; conversion methods of renewable energies into electricity; power systems; privatizing of power generation and birth of new markets, in particular the 'green' power market; development of renewable energies thanks to technical advances. It gives a comprehensive overview of the present day available renewable energy sources for power generation. (J.S.)

A three-stage short-term electric power planning procedure for a generation company in a liberalized market

International Nuclear Information System (INIS)

Nabona, Narcis; Pages, Adela

2007-01-01

In liberalized electricity markets, generation companies bid their hourly generation in order to maximize their profit. The optimization of the generation bids over a short-term weekly period must take into account the action of the competing generation companies and the market-price formation rules and must be coordinated with long-term planning results. This paper presents a three stage optimization process with a data analysis and parameter calculation, a linearized unit commitment, and a nonlinear generation scheduling refinement. Although the procedure has been developed from the experience with the Spanish power market, with minor adaptations it is also applicable to any generation company participating in a competitive market system. (author)

Impacts of demand response and renewable generation in electricity power market

Science.gov (United States)

Zhao, Zhechong

This thesis presents the objective of the research which is to analyze the impacts of uncertain wind power and demand response on power systems operation and power market clearing. First, in order to effectively utilize available wind generation, it is usually given the highest priority by assigning zero or negative energy bidding prices when clearing the day-ahead electric power market. However, when congestion occurs, negative wind bidding prices would aggravate locational marginal prices (LMPs) to be negative in certain locations. A load shifting model is explored to alleviate possible congestions and enhance the utilization of wind generation, by shifting proper amount of load from peak hours to off peaks. The problem is to determine proper amount of load to be shifted, for enhancing the utilization of wind generation, alleviating transmission congestions, and making LMPs to be non-negative values. The second piece of work considered the price-based demand response (DR) program which is a mechanism for electricity consumers to dynamically manage their energy consumption in response to time-varying electricity prices. It encourages consumers to reduce their energy consumption when electricity prices are high, and thereby reduce the peak electricity demand and alleviate the pressure to power systems. However, it brings additional dynamics and new challenges on the real-time supply and demand balance. Specifically, price-sensitive DR load levels are constantly changing in response to dynamic real-time electricity prices, which will impact the economic dispatch (ED) schedule and in turn affect electricity market clearing prices. This thesis adopts two methods for examining the impacts of different DR price elasticity characteristics on the stability performance: a closed-loop iterative simulation method and a non-iterative method based on the contraction mapping theorem. This thesis also analyzes the financial stability of DR load consumers, by incorporating

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

Novel approach to assess local market power considering transmission constraints

International Nuclear Information System (INIS)

Li, Canbing; Xia, Qing; Kang, Chongqing; Jiang, Jianjian

2008-01-01

Market power (MP) assessment and mitigation affect the efficiency of the generation market. The traditional indices such as HHI and Lerner index can not express local market power, which caused by transmission constraints. Transmission constraints divide the market into some smaller parts. Some generators can abuse their MP in one part but not in the whole market. This paper describes a new approach to assess market power. The main contributions of the new method can be summarized as following. First, the concept of local market is developed, and the whole power system is divided into several local markets, as transmission congestions dividing the market. In the local markets, there are no transmission constraints so local market power does not exist. Then the local market power index (LMPI) is calculated according to market concentration, transmission constraints, and demand-supply ratio. Based on LMPI, the integrated local market power index which describes the whole picture of market can be obtained. It has been proved that the new approach can assess market power exactly, and identify the critical factor that results in market power and where generators are easy to exercise market power. The finding in this paper is helpful for market monitoring and mitigating market power. Moreover, the new index can be used to evaluate the power grid availability to generation competition and the power transmission expansion planning. (author)

Market Design and Supply Security in Imperfect Power Markets

DEFF Research Database (Denmark)

Schwenen, Sebastian

2014-01-01

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

Market power in interactive environmental and energy markets

DEFF Research Database (Denmark)

Amundsen, Eirik S; Nese, Gjermund

2017-01-01

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

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

International Nuclear Information System (INIS)

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

2017-01-01

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

Market integration of Virtual Power Plants

DEFF Research Database (Denmark)

Petersen, Mette Kirschmeyer; Hansen, Lars Henrik; Bendtsen, Jan Dimon

2013-01-01

develop a three stage market model, which includes Day-Ahead (Spot), Intra-Day and Regulating Power Markets. This allows us to test the hypothesis that the Virtual Power Plant can generate additional profit by trading across several markets. We find that even though profits do increase as more markets...

Market stimulation of renewable-based power generation in Australia

International Nuclear Information System (INIS)

Kuwahata, Rena; Monroy, Carlos Rodriguez

2011-01-01

This paper attempts to identify the types of renewable-based power generation technologies available in Australia that have the capacity to contribute to the growth of the renewable energy sector and then suggest what type of economic incentive instruments could be applied in order to stimulate investment in that sector. Currently in Australia there are hydro, wind, bioenergy, solar, geothermal and ocean technologies being used to produce renewable power. Of these all except hydro power has large amounts of potentially useful resources. In the cases of wind, bioenergy, solar, and geothermal, the technology is mature enough to be immediately deployed in large-scale. However, only in the cases of wind and bioenergy the costs and return on investments are proven to be viable in the current market. What is required on all fronts is an improved return on investments. Within the current electricity market competition with fossil-fuel based power is very difficult considering the ample supply of coal available in Australia and the heavy subsidies it receives. To become more competitive with electricity generated from coal-fired power plants, a feed-in tariff scheme could be implemented, and subsidies to the coal industry should be reduced if not removed. Another aspect impeding the growth of certain renewable power technologies is the high capital cost. This issue could be addressed with direct subsidies or tax exemptions, or aiding with easier access of finance options. However for particular industries such as wind and solar, it would be a further benefit if some effort is made to encourage component manufacturing within Australia. For technologies that require further technical development, funding towards R and D or pilot projects, and support for international collaboration projects would accelerate their path to deployment. It is critical that the Australian government continues to be a leader. In addition to the Carbon Pollution Reduction Scheme (CPRS) and an

Power marketing and renewable energy

International Nuclear Information System (INIS)

Fang, J.M.

1997-01-01

Power marketing refers to wholesale and retail transactions of electric power made by companies other than public power entities and the regulated utilities that own the generation and distribution lines. The growth in power marketing has been a major development in the electric power industry during the last few years, and power marketers are expected to realize even more market opportunities as electric industry deregulation proceeds from wholesale competition to retail competition. This Topical Issues Brief examines the nature of the power marketing business and its relationship with renewable power. The information presented is based on interviews conducted with nine power marketing companies, which accounted for almost 54% of total power sales by power marketers in 1995. These interviews provided information on various viewpoints of power marketers, their experience with renewables, and their respective outlooks for including renewables in their resource portfolios. Some basic differences exist between wholesale and retail competition that should be recognized when discussing power marketing and renewable power. At the wholesale level, the majority of power marketers stress the commodity nature of electricity. The primary criteria for developing resource portfolios are the same as those of their wholesale customers: the cost and reliability of power supplies. At the retail level, electricity may be viewed as a product that includes value-added characteristics or services determined by customer preferences

Coupled energy and reactive power market clearing considering power system security

International Nuclear Information System (INIS)

Rabiee, Abdorreza; Shayanfar, Heidarali; Amjady, Nima

2009-01-01

In a deregulated environment, when talking about electricity markets, one usually refers to energy market, paying less attention to the reactive power market. Active and reactive powers are, however, coupled through the AC power flow equations and branch loading limits as well as the synchronous generators capability curves. However, the sequential approach for energy and reactive power markets cannot present the optimal solution due to the interactions between these markets. For instance, clearing of the reactive power market can change active power dispatch (e.g. due to a change of transmission system losses and the capability curve limitation), which can lead to degradation of the energy market clearing point. This paper presents a coupled day ahead energy and reactive power market based on the pay-at-MCP settlement mechanism. Besides, the proposed coupled framework considers voltage stability and security issues and branch loading limits. The coupled market is cleared through optimal power flow (OPF). Its objective function includes total payment of generating units for their active power production along with the total payment function (TPF) of units for their reactive power compensation. Moreover, lost opportunity cost (LOC) of the units is also considered. The effectiveness of the proposed framework is examined on the IEEE 24 bus Reliability Test System

Coupled energy and reactive power market clearing considering power system security

Energy Technology Data Exchange (ETDEWEB)

Rabiee, Abdorreza; Shayanfar, Heidarali [Center of Excellence for Power System Automation and Operation, Electrical Engineering Department, Iran University of Science and Technology (IUST), Tehran (Iran); Amjady, Nima [Department of Electrical Engineering, Semnan University, Semnan (Iran)

2009-04-15

In a deregulated environment, when talking about electricity markets, one usually refers to energy market, paying less attention to the reactive power market. Active and reactive powers are, however, coupled through the AC power flow equations and branch loading limits as well as the synchronous generators capability curves. However, the sequential approach for energy and reactive power markets cannot present the optimal solution due to the interactions between these markets. For instance, clearing of the reactive power market can change active power dispatch (e.g. due to a change of transmission system losses and the capability curve limitation), which can lead to degradation of the energy market clearing point. This paper presents a coupled day ahead energy and reactive power market based on the pay-at-MCP settlement mechanism. Besides, the proposed coupled framework considers voltage stability and security issues and branch loading limits. The coupled market is cleared through optimal power flow (OPF). Its objective function includes total payment of generating units for their active power production along with the total payment function (TPF) of units for their reactive power compensation. Moreover, lost opportunity cost (LOC) of the units is also considered. The effectiveness of the proposed framework is examined on the IEEE 24 bus Reliability Test System. (author)

Multiobjective clearing of reactive power market in deregulated power systems

International Nuclear Information System (INIS)

Rabiee, A.; Shayanfar, H.; Amjady, N.

2009-01-01

This paper presents a day-ahead reactive power market which is cleared in the form of multiobjective context. Total payment function (TPF) of generators, representing the payment paid to the generators for their reactive power compensation, is considered as the main objective function of reactive power market. Besides that, voltage security margin, overload index, and also voltage drop index are the other objective functions of the optimal power flow (OPF) problem to clear the reactive power market. A Multiobjective Mathematical Programming (MMP) formulation is implemented to solve the problem of reactive power market clearing using a fuzzy approach to choose the best compromise solution according to the specific preference among various non-dominated (pareto optimal) solutions. The effectiveness of the proposed method is examined based on the IEEE 24-bus reliability test system (IEEE 24-bus RTS). (author)

Pay-as-bid based reactive power market

International Nuclear Information System (INIS)

Amjady, N.; Rabiee, A.; Shayanfar, H.A.

2010-01-01

In energy market clearing, the offers are stacked in increasing order and the offer that intersects demand curve, determines the market clearing price (MCP). In reactive power market, the location of reactive power compensator is so important. A low cost reactive producer may not essentially be favorable if it is far from the consumer. Likewise, a high cost local reactive compensator at a heavily loaded demand center of network could be inevitably an alternative required to produce reactive power to maintain the integrity of power system. Given the background, this paper presents a day-ahead reactive power market based on pay-as-bid (PAB) mechanism. Generators expected payment function (EPF) is used to construct a bidding framework. Then, total payment function (TPF) of generators is used as the objective function of optimal power flow (OPF) problem to clear the PAB based market. The CIGRE-32 bus test system is used to examine the effectiveness of the proposed reactive power market.

Pay-as-bid based reactive power market

Energy Technology Data Exchange (ETDEWEB)

Amjady, N. [Department of Electrical Engineering, Semnan University, Semnan (Iran, Islamic Republic of); Rabiee, A., E-mail: Rabiee@iust.ac.i [Center of Excellence for Power System Automation and Operation, Department of Electrical Engineering, Iran University of Science and Technology, Tehran (Iran, Islamic Republic of); Shayanfar, H.A. [Center of Excellence for Power System Automation and Operation, Department of Electrical Engineering, Iran University of Science and Technology, Tehran (Iran, Islamic Republic of)

2010-02-15

In energy market clearing, the offers are stacked in increasing order and the offer that intersects demand curve, determines the market clearing price (MCP). In reactive power market, the location of reactive power compensator is so important. A low cost reactive producer may not essentially be favorable if it is far from the consumer. Likewise, a high cost local reactive compensator at a heavily loaded demand center of network could be inevitably an alternative required to produce reactive power to maintain the integrity of power system. Given the background, this paper presents a day-ahead reactive power market based on pay-as-bid (PAB) mechanism. Generators expected payment function (EPF) is used to construct a bidding framework. Then, total payment function (TPF) of generators is used as the objective function of optimal power flow (OPF) problem to clear the PAB based market. The CIGRE-32 bus test system is used to examine the effectiveness of the proposed reactive power market.

Advanced power generation systems for the 21st Century: Market survey and recommendations for a design philosophy

Energy Technology Data Exchange (ETDEWEB)

Andriulli, J.B.; Gates, A.E.; Haynes, H.D.; Klett, L.B.; Matthews, S.N.; Nawrocki, E.A.; Otaduy, P.J.; Scudiere, M.B.; Theiss, T.J.; Thomas, J.F.; Tolbert, L.M.; Yauss, M.L.; Voltz, C.A.

1999-11-01

The purpose of this report is to document the results of a study designed to enhance the performance of future military generator sets (gen-sets) in the medium power range. The study includes a market survey of the state of the art in several key component areas and recommendations comprising a design philosophy for future military gen-sets. The market survey revealed that the commercial market is in a state of flux, but it is currently or will soon be capable of providing the technologies recommended here in a cost-effective manner. The recommendations, if implemented, should result in future power generation systems that are much more functional than today's gen-sets. The number of differing units necessary (both family sizes and frequency modes) to cover the medium power range would be decreased significantly, while the weight and volume of each unit would decrease, improving the transportability of the power source. Improved fuel economy and overall performance would result from more effective utilization of the prime mover in the generator. The units would allow for more flexibility and control, improved reliability, and more effective power management in the field.

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

International Nuclear Information System (INIS)

Mullin, K.; Trebilcock, M.

2003-01-01

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

Unregulated generation relationships at Niagara Mohawk Power Corporation

International Nuclear Information System (INIS)

Schrayshuen, H.

1995-01-01

This paper examines the contractual and mandated power generation pricing relationships between an electric utility and unregulated power generation stations. The topics of the paper include types of generation facilities, current capacity of unregulated generators, rights to power markets, utility planning, responding to a changing market, power purchase agreement relationships, enforcement and renegotiation

Empirical assessment of market power in the Alberta wholesale electricity market

International Nuclear Information System (INIS)

Qu, F.

2007-01-01

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

A review of international green power markets: recent experience, trends, and market drivers

International Nuclear Information System (INIS)

Bird, L.; Aabakken, J.; Wuestenhagen, R.

2002-01-01

Green power marketing-the act of differentially selling electricity generated wholly or in part from renewable sources - has emerged in more than a dozen countries around the world. Almost two million customers worldwide buy green power today. This paper reviews green power marketing activity in Australia, Canada, Japan, the US, and in a number of countries in Europe to gain an understanding of consumer demand for electricity generated from renewable sources. It also examines key factors that influence market penetration of green power products, such as product designs, pricing, incentives, marketing strategies, policies, and product certification.(author)

The impact of the Market Power Mitigation Agreement on power prices in Ontario

International Nuclear Information System (INIS)

Chute, R. G.

2000-01-01

Market power was defined by the Market Design Committee (MDC) as 'the ability to sustain a significant price increase profitably', although it is generally understood to refer to the 'overwhelming dominance of generating capacity and supply capability of Ontario Power Generation' (OPG), the former generating arm of Ontario Hydro. The MDC sought to address market power within the context of the Ontario Government's White Paper on electricity sector reform, entitled 'Directions for Change'. The solution was the Market Power Mitigation Agreement (MPMA), a negotiated agreement between the MDC and OPG that established market share goals and provided incentives and penalties to meet these goals. Briefly, the major instrument used by the MPMA is the price of electric power sold in the Ontario market to reward, or penalize the actions of OPG in moving towards its market share goals as defined in the MPMA. This paper explains the principal elements of the MPMA and how they are expected to influence the market prices for power in Ontario. The principal elements of the Agreement are price cap and rebate, decontrol targets, and intertie capacity and limits, while the instruments comprise licence conditions, settlement agreements, market rules and ministerial directives. The issue of the impact of the MPMA on the cost of power, and the future prospects of market power after the expiration of the MPMA are also addressed

Do we need a power exchange if there are enough power marketers ?

OpenAIRE

SMEERS, Yves; WEI, Jing-Yuan

1997-01-01

Decentralization in electricity restructuring is a growing trend that Power Marketers are ex- pected to take advantage of. We consider a market composed of Power Marketers, an Indepen- dent System Operator, generators and retailers. Power Marketers behave a` la Cournot-Nash and the ISO implements a Transmission Capacity Reservation market a` la FERC. Retailers are price taker. Generators’ behavior is only reflected in the purchase costs of the Power Marketers. Their behavior is thus not reall...

Energy and environmental efficiency in competitive power markets

International Nuclear Information System (INIS)

Warwick, W.M.

1995-02-01

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

Market Power in Hydro-Thermal Supply

International Nuclear Information System (INIS)

Edin, Karl-Axel

2006-12-01

Despite having had a deregulated electricity market in Sweden for over ten years we still need to increase our understanding as to how deregulated electricity markets actually work and how possible problems are to be solved. One question that is always in focus is if the competition between generators in the Nordic electricity market really works the way it was intended. Many argue that the concentration in ownership of generation plants already has gone too far. Together with joint ownership in nuclear facilities and barriers for entrance, critics say that this has resulted in higher electricity prices than necessary. In this report different methods to (ex ante) study potential possibilities for generating firms to influence the electricity price (market power) and (ex post) discover possible manipulation through analysing the spot price and other observed factors on the electricity market are analysed. The purpose of the longer underlying paper is to give a comprehensive treatment of the electricity market with storage, i.e. hydro power, with an auction market organisation and to test the models on the Nordic market in order to explore the explanatory power of auction market theory and the theory of contestable market. The main theoretical effort in the paper concerns auction theory with inventories. The paper develops an inter-temporal auction model of a thermal-hydro power market. Parallel to the derivation of the basic equations a numerical model is developed in order to illustrate the results of the model. Section 2 of the present paper summarizes the basic equations (derived in the longer paper) for an inter-temporal auction thermal-hydro market. Section 3 contains the illustrations of solutions to equations for some stylized markets. In section 4 the auction model is tested on the Nordic market

Carbon Pricing, Power Markets and the Competitiveness of Nuclear Power

International Nuclear Information System (INIS)

2011-01-01

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

Gas-to-power market and investment incentive for enhancing generation capacity: An analysis of Ghana's electricity sector

International Nuclear Information System (INIS)

Fritsch, Jorik; Poudineh, Rahmatallah

2016-01-01

Ghana's electricity generation capacity is currently insufficient to meet demand, making power outages and load shedding common. The resulting impact is potentially devastating for the country's growth prospects. Traditionally, lack of an affordable and reliable fuel supply for power generation, coupled with ineffective institutions and an unfavourable investment climate, have resulted in Ghana's electricity sector performing poorly. In light of the 2007 discovery of natural gas reserves in Ghanaian waters, this paper examines whether domestic gas could advance the performance of the electricity sector, and if so, how. The results of our analysis show that utilization of gas reserves in Ghana's gas-to-power market is an economically superior strategy compared to an export-oriented utilization scheme. The lack of an effective regulatory framework for investment, skill shortages, and an inefficient electricity pricing structure continue to be the main constraining factors. Our analysis also considers possible approaches to modification of the electricity tariff in order to send the right signal to potential investors in generation capacity, without compromising the affordability of power supply. - Highlights: •We examine if domestic gas can improve the Ghanaian electricity sector performance. •We compare domestic gas-to-power market utilisation versus gas export. •It shows that gas-to-power market is more economical compared to gas export. •Ineffective investment regime, skill shortage and inefficient tariffs are barriers.

Prices vs. quantities. Incentives for renewable power generation. Numerical analysis for the European power market

Energy Technology Data Exchange (ETDEWEB)

Nagl, Stephan

2013-02-15

In recent years, many countries have implemented policies to incentivize renewable power generation. This paper outlines the effects of weather uncertainty on investment and operation decisions of electricity producers under a feed-in tariff and renewable quota obligation. Furthermore, this paper tries to quantify the sectoral welfare and investments risks under the different policies. For this purpose, a spatial stochastic equilibrium model is introduced for the European electricity market. The numerical analysis suggests that including the electricity market price in renewable policies (wholesale price + x) reduces the loss of sectoral welfare due to a renewable policy by 11-20 %. Moreover, investors face an only slightly higher risk than under fixed price compensations. However, electricity producers face a substantially larger investment risk when introducing a renewable quota obligation without the option of banking and borrowing of green certificates. Given the scenario results, an integration of the hourly market price in renewable support mechanisms is mandatory to keep the financial burden to electricity consumers at a minimum. Additionally, following the discussion of a European renewable quota after 2020, the analysis indicates the importance of an appropriate banking and borrowing mechanism in light of stochastic wind and solar generation.

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

Power generation, operation and control

CERN Document Server

Wood, Allen J; Sheblé, Gerald B

2013-01-01

Since publication of the second edition, there have been extensive changes in the algorithms, methods, and assumptions in energy management systems that analyze and control power generation. This edition is updated to acquaint electrical engineering students and professionals with current power generation systems. Algorithms and methods for solving integrated economic, network, and generating system analysis are provided. Also included are the state-of-the-art topics undergoing evolutionary change, including market simulation, multiple market analysis, multiple interchange contract analysis, c

Dutch Wholesale Power Market Review 2002. Executive Summary

International Nuclear Information System (INIS)

Vollebregt, T.; Rusch, H.

2002-01-01

Chapter 1 provides a background to the Dutch power market, covering generation, transmission, distribution, supply, and laws and regulations. Chapter 2 reviews the key market events during 2001 and early 2002, providing analysis and background on an important and tumultuous period in the Dutch market. Chapter 3 explains the structure and timing of the key market mechanisms (Amsterdam Power Exchange, interconnector capacity auctions, TenneT 15-minute balancing market). Chapter 4 briefly reviews fuel price developments and discusses their impact on the costs of generation. Chapter 5 contains a detailed review of the traded Dutch power markets (APX, OTC, interconnection), including the linkages between these markets and an analysis of arbitrage opportunities

Coal gasification and the power production market

International Nuclear Information System (INIS)

Howington, K.; Flandermeyer, G.

1995-01-01

The US electric power production market is experiencing significant changes sparking interest in the current and future alternatives for power production. Coal gasification technology is being marketed to satisfy the needs of the volatile power production industry. Coal gasification is a promising power production process in which solid coal is burned to produce a synthesis gas (syn gas). The syn gas may be used to fuel combustion integrated into a facility producing electric power. Advantages of this technology include efficient power production, low flue gas emissions, flexible fuel utilization, broad capability for facility integration, useful process byproducts, and decreased waste disposal. The primary disadvantages are relatively high capital costs and lack of proven long-term operating experience. Developers of coal gasification intend to improve on these disadvantages and lop a strong position in the power generation market. This paper is a marketing analysis of the partial oxidation coal gasification processes emerging in the US in response to the market factors of the power production industry. A brief history of these processes is presented, including the results of recent projects exploring the feasibility of integrated gasification combined cycle (IGCC) as a power production alternative. The current power generation market factors are discussed, and the status of current projects is presented including projected performance

Market Power and Investment in Renewable Electricity Generation

DEFF Research Database (Denmark)

Ernstsen, Rune Ramsdal; Misir, Nihat

while incurring lower investment costs. We additionally find that highly convex investment cost greatly diminishes the impact of market power on the investment decisions. Furthermore, for both the strategic firm and the social planner, fixed baseload generation is preferable during low installed...... approach to evaluate the investment decisions. In our paper we do not only focus on the differences in costs for different technologies but also on the differences in operation of those technologies and how those differences impact the optimal investment decisions. In our model, the one-time investment...... decision requires the determination of demand shock trigger level, choice of technology and level of optimal capacity. We specifically investigate how the investment triggers, optimal capacities and technology choices change with the changes to the investment cost function, demand uncertainty and the level...

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

Information Brief on Green Power Marketing Fourth Edition

Energy Technology Data Exchange (ETDEWEB)

Swezey, B.; Bird, L.

1999-08-18

For the first time in many decades, consumers are being given a choice of who supplies their electric power and how that power is generated. One of these choices is to support electricity generation from more environmentally beneficial energy sources. The term ''green power'' generally refers to electricity supplied from renewable energy sources. By some estimates, nearly one-quarter of all US consumers will have the option to purchase green power by the end of 1999, either from their regulated utility provider or in competitive markets. As of July 1999, consumers can choose to purchase competitively marketed green power in California, Massachusetts, Pennsylvania, and Rhode Island. As competition spreads in the electric power industry, more consumers will have this choice. The purpose of this Information Brief is to provide electric industry analysts with information on green power market trends. Descriptive information on green power marketing activities in both competitive and regulated market settings, as well as other pertinent data and information, are included.

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

Global power: Markets and strategies

International Nuclear Information System (INIS)

Poirer, J.L.

1998-01-01

The author will first present an updated view of the global power market activity, including opportunities in power generation, transmission and distribution. This will include a review of the trends in closings and transaction flowed by type of activity and geographic area. Estimates will be based on Hagler Bailly's comprehensive database on global power transactions and project announcements. The firm has also worked with dozens of global power companies since 1990. Second, the author will review trends in terms of regulatory changes, project cost trends, developers' project experiences, and financing issues. This systematic review will be the foundation for projection of future market activity (e.g., number of closing by type of project through 2000). A forecast of future greenfield and privatization activity will be provided and the key markets will be highlighted. Third, the author will present an updated view of the competition in the global power market (including the various types of competitors and changes in their respective market posture). Finally, the author will discuss the various types of strategies and business models that are followed by key global power players

Assembling markets for wind power. An inquiry into the making of market devices

Energy Technology Data Exchange (ETDEWEB)

Pallesen, T.

2013-04-15

This project studies the making of a market for wind power in France. Markets for wind power, as well as markets for other renewable energies, are often referred to as 'political markets: On the one hand, wind power has the potential to reduce CO{sub 2}-emissions and thus stall the effects of electricity generation on climate change; and on the other hand, as an economic good, wind power is said to suffer from 'disabilities', such as high costs, fluctuating and unpredictable generation, etc. Therefore, because of its performance as a good, it is argued that the survival of wind power in the market is premised on different instruments, some of which I will refer to as 'prosthetic devices'. This thesis inquires into two such prosthetic devices: The feed-in tariff and the wind power development zones (ZDE) as they are negotiated and practiced in France, and the ways in which they affect the making of markets for wind power. In this thesis, it is argued that while the two devices frame the price of wind power and the location of turbines, they also affect and address questions of costs, profitability, and efficiency; and as such, they may be investigated as market devices. (Author)

Agora Energiewende (2016). The power market pentagon. A pragmatic power market design for Europe's energy transition

Energy Technology Data Exchange (ETDEWEB)

Buck, Matthias; Redl, Christian; Steigenberger, Markus; Graichen, Patrick

2016-04-15

As consequence of Europe's climate and energy agenda, the European Union will generate some 50 percent of its electricity from renewables by 2030. By 2050, the EU's power system will have to be completely carbon-free. Solar photovoltaics and wind power - driven by significant cost reductions - will almost certainly contribute the biggest share of the zero-carbon technologies. Given the specific characteristics of wind power and photovoltaics (intermittent generation, high capital costs, very low variable costs), they will fundamentally change both market operations and the market design framework. Decarbonisation rests on continuous investments in these technologies. Usually it is expected that the energy market will deliver these investments, in combination with the emissions trading system. But is this view, based on simple textbook economics, enough to enable the required investments under real world conditions? In this paper, we argue that this rather theoretical view to power market design is not the way forward. Instead, a more pragmatic approach is needed, that takes into account the complex practical, political, and economic challenges of the transition towards a carbon-free power system. Thus, we propose to think of the future European market design as a Power Market Pentagon.

Agora Energiewende (2016). The power market pentagon. A pragmatic power market design for Europe's energy transition

International Nuclear Information System (INIS)

Buck, Matthias; Redl, Christian; Steigenberger, Markus; Graichen, Patrick

2016-01-01

As consequence of Europe's climate and energy agenda, the European Union will generate some 50 percent of its electricity from renewables by 2030. By 2050, the EU's power system will have to be completely carbon-free. Solar photovoltaics and wind power - driven by significant cost reductions - will almost certainly contribute the biggest share of the zero-carbon technologies. Given the specific characteristics of wind power and photovoltaics (intermittent generation, high capital costs, very low variable costs), they will fundamentally change both market operations and the market design framework. Decarbonisation rests on continuous investments in these technologies. Usually it is expected that the energy market will deliver these investments, in combination with the emissions trading system. But is this view, based on simple textbook economics, enough to enable the required investments under real world conditions? In this paper, we argue that this rather theoretical view to power market design is not the way forward. Instead, a more pragmatic approach is needed, that takes into account the complex practical, political, and economic challenges of the transition towards a carbon-free power system. Thus, we propose to think of the future European market design as a Power Market Pentagon.

A review of the deregulated power market since market opening

International Nuclear Information System (INIS)

Runge, C.

2003-01-01

The Alberta electrical industry structure was discussed along with the market opportunities and historic market data pertaining to Alberta. The Alberta electrical industry is responsible for 20,000 kilometres of transmission lines, connections with British Columbia and Saskatchewan, operates in excess of 90 generating units, with 200 Power Pool participants. The Alberta electricity generation breakdown was provided (coal, gas, hydro), and a look at the projected growth in installed capacity provided. General information concerning the Power Pool of Alberta was presented. In discussing market opportunities, the author began by looking at the evolution of the Alberta market, noting that the Pool commenced operations in 1996. A discussion followed on real time spot market, direct sales, contract for differences (CfD), and other market opportunities. The last part of the presentation dealt with historical market data. The Alberta annual Pool price from 1996 to 2002 was presented, along with daily pool price 1996-2002. The factors affecting Pool price are: other markets, input costs, supply-demand balance, and other market elements. Alberta imports and exports were discussed, followed by a look at forward trading activity. Market evolution was addressed, including considerations in next phase of Alberta market. figs

How does market power affect the impact of large scale wind investment in 'energy only' wholesale electricity markets?

International Nuclear Information System (INIS)

Browne, Oliver; Poletti, Stephen; Young, David

2015-01-01

In the short run, it is well known that increasing wind penetration is likely to reduce spot market electricity prices due to the merit order effect. The long run effect is less clear because there will be a change in new capacity investment in response to the wind penetration. In this paper we examine the interaction between capacity investment, wind penetration and market power by first using a least-cost generation expansion model to simulate capacity investment with increasing amounts of wind generation, and then using a computer agent-based model to predict electricity prices in the presence of market power. We find the degree to which firms are able to exercise market power depends critically on the ratio of capacity to peak demand. For our preferred long run generation scenario we show market power increases for some periods as wind penetration increases however the merit order counteracts this with the results that prices overall remain flat. Returns to peakers increase significantly as wind penetration increases. The market power in turn leads to inefficient dispatch which is exacerbated with large amounts of wind generation. - Highlights: • Increasing investment in wind generation is analyzed using an agent based model. • In an energy only market, increased total capacity reduces market power. • Increasing wind penetration results in more market power in some periods. • Market power causes dispatch inefficiencies, which grow as wind capacity increases.

Power system and market integration of renewable electricity

Science.gov (United States)

Erdmann, Georg

2017-07-01

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

Electricity market competition and nuclear power

International Nuclear Information System (INIS)

Varley, C.; Paffenbarger, J.

1999-01-01

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

A review of international green power markets: recent experience, trends, and market drivers

OpenAIRE

Bird, Lori; Wüstenhagen, Rolf; Aabakken, Jorn

2002-01-01

Green power marketing-the act of differentially selling electricity generated wholly or in part from renewable sources-has emerged in more than a dozen countries around the world. Almost two million customers worldwide buy green power today. This paper reviews green power marketing activity in Australia, Canada, Japan, the US, and in a number of countries in Europe to gain an understanding of consumer demand for electricity generated from renewable sources. It also examines key factors that i...

Power generation planning: a survey from monopoly to competition

International Nuclear Information System (INIS)

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

2004-01-01

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

Vertical integration and market power: A model-based analysis of restructuring in the Korean electricity market

International Nuclear Information System (INIS)

Bunn, Derek W.; Martoccia, Maria; Ochoa, Patricia; Kim, Haein; Ahn, Nam-Sung; Yoon, Yong-Beom

2010-01-01

An agent-based simulation model is developed using computational learning to investigate the impact of vertical integration between electricity generators and retailers on market power in a competitive wholesale market setting. It is observed that if partial vertical integration creates some market foreclosure, whether this leads to an increase or decrease in market power is situation specific. A detailed application to the Korean market structure reveals this to be the case. We find that in various cases, whilst vertical integration generally reduces spot prices, it can increase or decrease the market power of other market generators, depending upon the market share and the technology segment of the market, which is integrated, as well as the market concentrations before and after the integration.

Vertical integration and market power. A model-based analysis of restructuring in the Korean electricity market

Energy Technology Data Exchange (ETDEWEB)

Bunn, Derek W.; Martoccia, Maria; Ochoa, Patricia [London Business School, London (United Kingdom); Kim, Haein; Ahn, Nam-Sung; Yoon, Yong-Beom [Korean Electric Power Corporation, Seoul (Korea)

2010-07-15

An agent-based simulation model is developed using computational learning to investigate the impact of vertical integration between electricity generators and retailers on market power in a competitive wholesale market setting. It is observed that if partial vertical integration creates some market foreclosure, whether this leads to an increase or decrease in market power is situation specific. A detailed application to the Korean market structure reveals this to be the case. We find that in various cases, whilst vertical integration generally reduces spot prices, it can increase or decrease the market power of other market generators, depending upon the market share and the technology segment of the market, which is integrated, as well as the market concentrations before and after the integration. (author)

Vertical integration and market power: A model-based analysis of restructuring in the Korean electricity market

Energy Technology Data Exchange (ETDEWEB)

Bunn, Derek W., E-mail: dbunn@london.ed [London Business School, London (United Kingdom); Martoccia, Maria; Ochoa, Patricia [London Business School, London (United Kingdom); Kim, Haein; Ahn, Nam-Sung; Yoon, Yong-Beom [Korean Electric Power Corporation, Seoul (Korea, Republic of)

2010-07-15

An agent-based simulation model is developed using computational learning to investigate the impact of vertical integration between electricity generators and retailers on market power in a competitive wholesale market setting. It is observed that if partial vertical integration creates some market foreclosure, whether this leads to an increase or decrease in market power is situation specific. A detailed application to the Korean market structure reveals this to be the case. We find that in various cases, whilst vertical integration generally reduces spot prices, it can increase or decrease the market power of other market generators, depending upon the market share and the technology segment of the market, which is integrated, as well as the market concentrations before and after the integration.

Economic-environmental active and reactive power scheduling of modern distribution systems in presence of wind generations: A distribution market-based approach

International Nuclear Information System (INIS)

Samimi, Abouzar; Kazemi, Ahad; Siano, Pierluigi

2015-01-01

Highlights: • A new market-based approach is proposed to schedule active and reactive powers. • Multi-component reactive power bidding structures for DERs is introduced. • A new economical/environmental operational scheduling method is proposed. • At distribution level, a reactive power market is developed in presence of DERs. - Abstract: Distribution System Operator (DSO) is responsible for active and reactive power scheduling in a distribution system. DSO purchases its active and reactive power requirements from Distributed Energy Resources (DERs) as well as the wholesale electricity market. In this paper, a new economical/environmental operational scheduling method based on sequential day-ahead active and reactive power markets at distribution level is proposed to dispatch active and reactive powers in distribution systems with high penetration of DERs. In the proposed model, after day-ahead active power market was cleared the participants submit their reactive power bids and then the reactive power market will be settled. At distribution level, developing a Var market, in which DERs like synchronous machine-based Distributed Generation (DG) units and Wind Turbines (WTs) could offer their reactive power prices, DERs are motivated to actively participate in the Volt/VAr Control (VVC) problem. To achieve this purpose, based on the capability curves of considered DERs, innovative multi-component reactive power bidding structures for DERs are introduced. Moreover, the effect of reactive power market clearing on the active power scheduling is explicitly considered into the proposed model by rescheduling of active power by usage of energy-balance service bids. On the other hand, environmental concerns that arise from the operation of fossil fuel fired electric generators are included in the proposed model by employing CO_2 emission penalty cost. The suggested reactive power market is cleared through a mixed-integer nonlinear optimization program. The

Green power: A renewable energy resources marketing plan

International Nuclear Information System (INIS)

Barr, R.C.

1997-01-01

Green power is electricity generated from renewable energy sources such as power generated from the sun, the wind, the heat of the earth, and biomass. Green pricing is the marketing strategy to sell green power to customers who voluntarily pay a premium for it. Green pricing is evolving from the deregulation of the electric industry, the need for clean air, reflected in part as concern over global warming, and technology advances. The goal of the renewable energy marketing plan is to generate enough revenues for a utility to fund power purchase agreements (PPAs) with renewable energy developers or construct its own renewable facilities. Long-term, fixed price PPAs enable developers to obtain financing to construct new facilities, sometimes taking technological risks which a utility might not take otherwise. The marketing plan is built around different rate premiums for different categories of ratepayers, volunteer customer participation, customer participation recognition, and budget allocations between project costs and power marketing costs. Green prices are higher than those for conventional sources, particularly prices from natural gas fired plants. Natural gas is abundant relative to oil in price per British thermal unit (Btu). Green pricing can help bridge the gap between the current oversupply of gas and the time, not far off, when all petroleum prices will exceed those for renewable energy. The rapid implementation of green pricing is important. New marketing programs will bolster the growing demand for renewable energy evidenced in many national surveys thus decreasing the consumption of power now generated by burning hydrocarbons. This paper sets forth a framework to implement a green power marketing plan for renewable energy developers and utilities working together

Power system and market integration of renewable electricity

Directory of Open Access Journals (Sweden)

Erdmann Georg

2017-01-01

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

Green Power Marketing Abroad: Recent Experience and Trends

Energy Technology Data Exchange (ETDEWEB)

Bird, L.; Wustenhagen, R.; Aabakken, J.

2002-04-01

Green power marketing--the act of differentially selling electricity generated wholly or in part from renewable sources--has emerged in more than a dozen countries around the world. This report reviews green power marketing activity abroad to gain additional perspective on consumer demand and to discern key factors or policies that affect the development of green power markets. The objective is to draw lessons from experience in other countries that could be applicable to the U.S. market.

Spanish generation market: structure, design and results

International Nuclear Information System (INIS)

Agosti, L.; Padilla, A. J.; Requejo, A.

2007-01-01

This paper provides an overview of the structure, design and outcome of the Spanish generation market from 1998, when the market was liberalised, to date. More precisely, this paper reviews the history of the liberalisation process; describes the structure of the generation market and its evolution over time; analyses the existence of market power; and evaluates the outcome of the liberalisation process from the viewpoint of its impact on al locative efficiency, productive efficiency and dynamic efficiency. The paper concludes with a brief summary of recent regulatory reforms. (Author)

Ownership structure and market power in the nordic power market

International Nuclear Information System (INIS)

Amundsen, E.S.; Bergman, L.

1999-01-01

The opening of Nord Pool in 1996 seriously constrained the power companies' ability to exercise market power within their national borders. Currently there is an integration process going on among the power companies in the Nord Pool area. It manifest itself in terms of take-over and reciprocal acquisition of shares in the power companies - nationally and abroad. This process may undo what the introduction of the common power market achieved in curtailing market power. The aim of this paper is to investigate the effects on market power of increased cross- ownership in the Nordic power market. (au)

Nash equilibrium strategies of generating companies (Gencos) in the simultaneous operation of active and reactive power market, with considering voltage stability margin

International Nuclear Information System (INIS)

Soleymani, S.

2013-01-01

Highlights: ► We model the behavior of Gencos in the active and reactive power markets. ► Genco’s strategy is modeled as a bi-level optimization problem. ► The ISO’s market clearing model is modified with applying generator APFs. ► Good forecast of Genco’s information will increase the accuracy of proposed method. ► Obtained profit of Gencos depend on their bidding strategy. - Abstract: As Gencos are responsible for providing active and reactive power generation, they should devise good bidding strategies for energy and reactive power market. The paper describes a method for analyzing the competition among transmission-constrained Gencos with incomplete information. The proposed methodology employs the Supply Function Equilibrium (SFE) for modeling a Genco’s bidding strategy in energy market and uses Expected Payment Function (EPF) to construct a bidding framework in the reactive power market. The problem of finding the optimum strategy of Gencos is modeled as a bi-level optimization problem, where the upper sub-problem represents individual Genco’s payoff and the lower sub-problem solves the ISO’s market clearing problem. The ISO’s market clearing model is modified with applying generator Active Participation Factors to improve the voltage stability margin. The IEEE 39 bus test system is used to verify the effectiveness of the proposed method.

MVA power flow and loss analysis for electricity market

International Nuclear Information System (INIS)

Wu, Z.Q.; Chen, G.Z.

2001-01-01

MVA power-flow and loss analysis is the basis for allocating the fixed costs and power losses under electricity-market deregulation. It is pointed out that the decomposition allocation of active and reactive power losses is not reasonable. The theory of active and reactive loss allocation and branch-power-flow decomposition has been proposed. Various contributory factors have been deduced. These contributory factors include the contribution factors of the active and reactive generation power, load-power-to-branch flows, the contribution factors of active and reactive generation power to active and reactive load power, the contribution factors of active and reactive load power to generation power, and the contribution factors of active and reactive load power and active and reactive generation power to line power losses. The detailed calculation results are presented and analysed, demonstrating that the theory presented provides a good charging algorithm for all the market participants. (Author)

Stability of power systems coupled with market dynamics

Science.gov (United States)

Meng, Jianping

This Ph.D. thesis presented here spans two relatively independent topics. The first part, Chapter 2 is self-contained, and is dedicated to studies of new algorithms for power system state estimation. The second part, encompassing the remaining chapters, is dedicated to stability analysis of power system coupled with market dynamics. The first part of this thesis presents improved Newton's methods employing efficient vectorized calculations of higher order derivatives in power system state estimation problems. The improved algorithms are proposed based on an exact Newton's method using the second order terms. By efficiently computing an exact gain matrix, combined with a special optimal multiplier method, the new algorithms show more reliable convergence compared with the existing methods of normal equations, orthogonal decomposition, and Hachtel's sparse tableau. Our methods are able to handle ill-conditioned problems, yet show minimal penalty in computational cost for well-conditioned cases. These claims are illustrated through the standard IEEE 118 and 300 bus test examples. The second part of the thesis focuses on stability analysis of market/power systems. The work presented is motivated by an emerging problem. As the frequency of market based dispatch updates increases, there will inevitably be interaction between the dynamics of markets determining the generator dispatch commands, and the physical response of generators and network interconnections, necessitating the development of stability analysis for such coupled systems. We begin with numeric tests using different market models, with detailed machine/exciter/turbine/governor dynamics, in the New England 39 bus test system. A progression of modeling refinements are introduced, including such non-ideal effects as time delays. Electricity market parameter identification algorithms are also studied based on real time data from the PJM electricity market. Finally our power market model is augmented by optimal

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

Overview of government and market driven programs for the promotion of renewable power generation

International Nuclear Information System (INIS)

Ackermann, T.; Andersson, G.; Soeder, L.

2001-01-01

This paper presents and briefly evaluates some existing government instruments and market schemes which support the development of renewable energy generation. The brief evaluation focuses on the incentives provided by the various instruments to reduce production costs. The instruments and schemes are: feed-in tariffs, net metering, bidding process, fixed quotas, green certificate trading, green power exchange, green pricing. (author)

Linking the grids : marketing power across the border

International Nuclear Information System (INIS)

Lawrence, G.K.

1998-01-01

A review of U.S. regulations such as Federal Energy Regulatory Commission (FERC) order 888 and 889, regarding the transmission and distribution of electricity by electric utilities was presented. This presentation outlined FERC market power tests for power marketer applications. Meeting the 'Market Power' Test requirements means that FERC will allow a power marketer to sell power at market-based rates provided that the applicant can demonstrate that (1) neither it, nor its affiliates, is a dominant firm in generation sales in the relevant market, (2) owns or controls transmission facilities, (3) can erect or control any other barrier to market entry, or (4) abuses the affiliate relationship or has reciprocal dealings. The market power test applies to power marketers affiliated with government-owned Canadian utilities such as Energy Alliance Partnership, TransAlta Enterprises Corp., Ontario Hydro Interconnected Markets, British Columbia Power Exchange Corp., and H.Q. Energy Services (U.S.) Inc. Present state of the FERC applications of each of these power marketers was reviewed. Some lessons learned from U.S. retail natural gas unbundling were described. The general conclusion was that the future for Canadian sales into the U.S. electricity market is exciting, even if meeting FERC conditions is going to be difficult. Those who can, will prosper

Forward reliability markets: Less risk, less market power, more efficiency

International Nuclear Information System (INIS)

Cramton, Peter; Stoft, Steven

2008-01-01

A forward reliability market is presented. The market coordinates new entry through the forward procurement of reliability options - physical capacity bundled with a financial option to supply energy above a strike price. The market assures adequate generating resources and prices capacity from the bids of competitive new entry in an annual auction. Efficient performance incentives are maintained from a load-following obligation to supply energy above the strike price. The capacity payment fully hedges load from high spot prices, and reduces supplier risk as well. Market power is reduced in the spot market, since suppliers enter the spot market with a nearly balanced position in times of scarcity. Market power in the reliability market is addressed by not allowing existing supply to impact the capacity price. The approach, which has been adopted in New England and Colombia, is readily adapted to either a thermal system or a hydro system. (author)

The economics of energy storage in 14 deregulated power markets

International Nuclear Information System (INIS)

Figueiredo, F.C.; Flynn, P.C.; Cabral, E.A.

2006-01-01

In regulated power markets, electricity is stored to better utilize existing generation and to defer costly investment in generation. The justification is a reduction in the overall regulated price of power compared to the alternative investment in new primary generation. However, any storage of electrical power also involves a capital investment and incurs the cost of inefficiency. In deregulated energy markets, the sale of electricity or ancillary services from pumped storage can be evaluated based on each individual project. The economic basis for power storage is that power is purchased during periods of low price and resold during periods of high price. This study used historical power price data from 14 deregulated markets around the world to evaluate the economic incentive to use pumped storage for electrical energy. Each market was shown to have a unique average diurnal power price profile that results in a unique price spread for pumped storage. The diurnal price pattern and efficiency of storage was used to assess the net income potential from energy sales from pumped storage for each market. The markets were ranked in terms of the incentive to invest in pumped energy storage as well as on available revenue, and on potential return on investment. An optimal operating profile was illustrated in detail based on historical price patterns for one of the markets. The net income potential was then combined with the capital and operating cost of pumped storage. The adequacy of return on investment for pumped storage was analyzed by two different methods. The differences between markets stem from different diurnal power price patterns that reflect the generation mix, market design and participant behaviours. 17 refs., 7 tabs., 7 figs., 1 appendix

Combined hydro-wind generation bids in a pool-based electricity market

International Nuclear Information System (INIS)

Angarita, Jorge L.; Usaola, Julio; Martinez-Crespo, Jorge

2009-01-01

Present regulatory trends are promoting the direct participation of wind energy in electricity markets. The final result of these markets sets the production scheduling for the operation time, including a power commitment from the wind generators. However, wind resources are uncertain, and the final power delivered usually differs from the initial power committed. This imbalance produces an overcost in the system, which must be paid by those who produce it, e.g., wind generators among others. As a result, wind farm revenue decreases, but it could increase by allowing wind farms to submit their bids to the markets together with a hydro generating unit, which may easily modify its production according to the expected imbalance. This paper presents a stochastic optimization technique that maximizes the joint profit of hydro and wind generators in a pool-based electricity market, taking into account the uncertainty of wind power prediction. (author)

Spanish Power Exchange Market Concepts and Operating Experience

International Nuclear Information System (INIS)

Gonzalez, J. J.; Gamito, C.

2000-01-01

On January, 1st, 1998, the Spanish Electricity Market started operations. All generators, distributors, commercialization companies, and final consumers negotiate al power exchanges either through the spot market or using bilateral contracts. The Spanish Power Exchange Market Operator (Compania Operadora del Mercado Espanol de electricidad, OMEL) is responsible for the management of the market and for the economic settlement and billing of a transactions on the Power Exchange market, and the technical operational process handled by the System Operator. This paper describes in detail the Spanish market principles and the experience gathered through the design, installation and first two years of market operation. The paper presents also the Spanish market results from January 1998 up to December 1999 indicating each specific market results and aggregate statistics. (Author)

Optimal Offering Strategies for Wind Power in Energy and Primary Reserve Markets

DEFF Research Database (Denmark)

Soares, Tiago; Pinson, Pierre; Jensen, Tue Vissing

2016-01-01

generation from the turbines. These offering strategies aim at maximizing expected revenues from both market floors using probabilistic forecasts for wind power generation, complemented with estimated regulation costs and penalties for failing to provide primary reserve. A set of numerical examples, as well......Wind power generation is to play an important role in supplying electric power demand, and will certainly impact the design of future energy and reserve markets. Operators of wind power plants will consequently develop adequate offering strategies, accounting for the market rules...... and the operational capabilities of the turbines, e.g., to participate in primary reserve markets. We consider two different offering strategies for joint participation of wind power in energy and primary reserve markets, based on the idea of proportional and constant splitting of potentially available power...

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

Science.gov (United States)

Lo Prete, Chiara

. Chapter 4 examines the possibility of asymmetric transmission of CO 2 and fuel prices to electricity futures prices in the second phase of the European Emission Trading Scheme. The goal is to assess whether output prices tend to respond more quickly to input price increases than decreases: this phenomenon is known as "rockets and feathers" in the literature. Results do not provide empirical evidence of statistically significant differences in the response of power prices to positive and negative shocks in CO 2 allowance and fuel markets. Chapter 5 re-examines the issue of the potential exercise of market power in California after liberalization, with a focus on its day-ahead energy market (the former PX) and its five largest thermal generators. The analysis focuses on a peak hour of operation (hour 18) and disregards hours in which congestion occurred. First, I define a direct measure of unilateral market power for each firm, equal to the hourly inverse elasticity of its residual demand function. The second part of the analysis aims at assessing whether the necessary conditions for the unilateral exercise of market power were satisfied in practice, based on a comparison of PX market-clearing prices, estimated marginal revenues and estimated bounds for the marginal costs of generation of each supplier. By conservatively assuming that the estimated upper bound is close to each firm's actual marginal cost of generation, the analysis suggests that in a large fraction of hours the thermal generators were acting less competitively that what implied by unilateral profit maximization. If instead I explicitly account for uncertainty in the marginal cost estimates with the introduction of a +/-10% margin on the estimated bounds, thermal generators are equally likely to bid close to their marginal costs or above them. Among the hours characterized by market-clearing prices above marginal costs, 64% present, on average, evidence of less competitive than Nash behavior. Two possible

Power marketing

International Nuclear Information System (INIS)

Sioshansi, F.P.; Altman, A.M.

1998-01-01

One of the most significant developments in the US electric power industry in recent years has been the phenomenal growth of power marketing. What was barely a blimp on the radar screen in 1992 has turned out to be a jumbo jet. This article explains what is power marketing who are power marketers, what role play these players and what will be their longer-term impact on the traditional industry [it

Hydraulic plant generation forecasting in Colombian power market using ANFIS

Energy Technology Data Exchange (ETDEWEB)

Moreno, Julian [Computer Science Department, Carrera 80 No. 65-223 Bloque M8A, Universidad Nacional de Colombia, Medellin (Colombia)

2009-05-15

In this paper an ANFIS model (adaptive neuro-fuzzy inference system) is proposed to forecast the monthly ideal generation of an agent with a hydraulic plant within the Colombian power market. The proposed model considers several factors as the plant's reservoir level, the expected hydraulic contributions of the rivers which feed it, and the expected weather conditions represented by the SST anomaly forecast in Nino 3.4 zone. The fitness of such model is measured with real data of a particular agent from period 2002-2007 and it is compared against a multiple linear regression model. The obtained results show a considerable decrease of the mean percentage error, which is an evidence of its validity and possible application to other agents. (author)

Hydraulic plant generation forecasting in Colombian power market using ANFIS

International Nuclear Information System (INIS)

Moreno, Julian

2009-01-01

In this paper an ANFIS model (adaptive neuro-fuzzy inference system) is proposed to forecast the monthly ideal generation of an agent with a hydraulic plant within the Colombian power market. The proposed model considers several factors as the plant's reservoir level, the expected hydraulic contributions of the rivers which feed it, and the expected weather conditions represented by the SST anomaly forecast in Nino 3.4 zone. The fitness of such model is measured with real data of a particular agent from period 2002-2007 and it is compared against a multiple linear regression model. The obtained results show a considerable decrease of the mean percentage error, which is an evidence of its validity and possible application to other agents. (author)

Reactive power management and voltage control in deregulated power markets

Science.gov (United States)

Spangler, Robert G.

The research that is the subject of this dissertation is about the management of reactive power and voltage support in the wholesale open access power markets in the United States (US). The purpose of this research is to place decisions about open access market structures, as they relate to reactive power and voltage control, on a logical and consistent economic basis, given the engineering needs of a commercial electric power system. An examination of the electricity markets operating in the US today reveals that current approaches to reactive power management and voltage support are extensions of those based on historical, regulated monopoly electric service. A case for change is built by first looking at the subject of reactive power from an engineering viewpoint and then from an economic perspective. Ultimately, a set of market rules for managing reactive power and voltage support is proposed. The proposal suggests that cost recovery for static and dynamic VARs is appropriately accomplished through the regulated transmission cost of service. Static VAR cost recovery should follow traditional rate recovery methodologies. In the case of dynamic VARs, this work provides a methodology based on the microeconomic theory of the firm for determining such cost. It further suggests that an operational strategy that reduces and limits the use of dynamic VARs, during normal operations, is appropriate. This latter point leads to an increase in the fixed cost of the transmission network but prevents price spikes and short supply situations from affecting, or being affected by, the reactive capability limitations associated with dynamic VARs supplied from synchronous generators. The rules are consistent with a market structure that includes competitive generation and their application will result in the communication of a clear understanding of the responsibilities, related to voltage control, of each type of market entity. In this sense, their application will contribute to

Price Forecasting of Electricity Markets in the Presence of a High Penetration of Wind Power Generators

Directory of Open Access Journals (Sweden)

Saber Talari

2017-11-01

Full Text Available Price forecasting plays a vital role in the day-ahead markets. Once sellers and buyers access an accurate price forecasting, managing the economic risk can be conducted appropriately through offering or bidding suitable prices. In networks with high wind power penetration, the electricity price is influenced by wind energy; therefore, price forecasting can be more complicated. This paper proposes a novel hybrid approach for price forecasting of day-ahead markets, with high penetration of wind generators based on Wavelet transform, bivariate Auto-Regressive Integrated Moving Average (ARIMA method and Radial Basis Function Neural Network (RBFN. To this end, a weighted time series for wind dominated power systems is calculated and added to a bivariate ARIMA model along with the price time series. Moreover, RBFN is applied as a tool to correct the estimation error, and particle swarm optimization (PSO is used to optimize the structure and adapt the RBFN to the particular training set. This method is evaluated on the Spanish electricity market, which shows the efficiency of this approach. This method has less error compared with other methods especially when it considers the effects of large-scale wind generators.

Redesign Electricity Market for the Next Generation Power System of Renewable Energy and Distributed Storage Technologies

DEFF Research Database (Denmark)

Feng, Donghan; Xu, Zhao; Østergaard, Jacob

2010-01-01

This paper proposes a stochastic time-series based method to simulate the volatility of intermittent renewable generation and distributed storage devices along timeline. The proposed method can calculate the optimal timeline for different electricity markets and power systems. In practice......, the proposed method is potentially useful for designing market rules and evaluating different design options. Following works is underway on application and simulation of proposed method using the realistic distribution system of Bornholm Island in Denmark....

Optimal generator bidding strategies for power and ancillary services

Science.gov (United States)

Morinec, Allen G.

As the electric power industry transitions to a deregulated market, power transactions are made upon price rather than cost. Generator companies are interested in maximizing their profits rather than overall system efficiency. A method to equitably compensate generation providers for real power, and ancillary services such as reactive power and spinning reserve, will ensure a competitive market with an adequate number of suppliers. Optimizing the generation product mix during bidding is necessary to maximize a generator company's profits. The objective of this research work is to determine and formulate appropriate optimal bidding strategies for a generation company in both the energy and ancillary services markets. These strategies should incorporate the capability curves of their generators as constraints to define the optimal product mix and price offered in the day-ahead and real time spot markets. In order to achieve such a goal, a two-player model was composed to simulate market auctions for power generation. A dynamic game methodology was developed to identify Nash Equilibria and Mixed-Strategy Nash Equilibria solutions as optimal generation bidding strategies for two-player non-cooperative variable-sum matrix games with incomplete information. These games integrated the generation product mix of real power, reactive power, and spinning reserve with the generators's capability curves as constraints. The research includes simulations of market auctions, where strategies were tested for generators with different unit constraints, costs, types of competitors, strategies, and demand levels. Studies on the capability of large hydrogen cooled synchronous generators were utilized to derive useful equations that define the exact shape of the capability curve from the intersections of the arcs defined by the centers and radial vectors of the rotor, stator, and steady-state stability limits. The available reactive reserve and spinning reserve were calculated given a

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

International Nuclear Information System (INIS)

Joskow, Paul; Tirole, Jean

1999-01-01

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

2004 Power marketing program draft environmental impact statement

International Nuclear Information System (INIS)

1996-04-01

The Western Area Power Administration (Western), created in 1977 under the Department of Energy (DOE) Organization Act, markets and transmits electric power throughout 15 western states. Western's Sierra Nevada Customer Service Region (Sierra Nevada Region) markets approximately 1,480 megawatts (MW) of power from the Central Valley Project (CVP) and other sources, and markets available nonfirm energy from the Washoe Project. The Sierra Nevada Region's marketing area is shown in Figure 1. 1. Western's mission is to sell and deliver electricity that is in excess of Project Use (power required for project operations), which for the Sierra Nevada Region is generated from CVP and Washoe Project powerplants. Western's power marketing responsibility includes managing the Federal transmission system. The hydroelectric generation facilities of the CVP are operated by the Bureau of Reclamation (Reclamation). Reclamation manages and releases water in accordance with the various acts authorizing specific projects and with other laws and enabling legislation. Western's capacity and energy sales must be in conformance with the laws that govern its sale of electrical power. Hydropower operations at each facility must comply with minimum and maximum flows and other constraints set by Reclamation, the U.S. Fish and Wildlife Service (the Service), or other regulatory agencies, acting in accordance with law or policy. This EIS describes the environmental consequences of the range of reasonable marketing alternatives that meet the needs and purposes of the proposed marketing plan

A stochastic framework for clearing of reactive power market

International Nuclear Information System (INIS)

Amjady, N.; Rabiee, A.; Shayanfar, H.A.

2010-01-01

This paper presents a new stochastic framework for clearing of day-ahead reactive power market. The uncertainty of generating units in the form of system contingencies are considered in the reactive power market-clearing procedure by the stochastic model in two steps. The Monte-Carlo Simulation (MCS) is first used to generate random scenarios. Then, in the second step, the stochastic market-clearing procedure is implemented as a series of deterministic optimization problems (scenarios) including non-contingent scenario and different post-contingency states. In each of these deterministic optimization problems, the objective function is total payment function (TPF) of generators which refers to the payment paid to the generators for their reactive power compensation. The effectiveness of the proposed model is examined based on the IEEE 24-bus Reliability Test System (IEEE 24-bus RTS). (author)

Financing power projects in emerging markets

International Nuclear Information System (INIS)

Matsumoto, G.T.

1996-01-01

Financing for power generation projects in the developing countries of the world has been provided by the United States Export-Import Bank. The loans provided by its new Project Finance Division, totalling $8.3 billion are described. The future of project financing for the power generation industry should, it is argued, rest not with government financing agencies, but with private sector financial markets. (UK)

Generator Rescheduling under Congested Power System with Wind Integrated Competitive Power Market

Directory of Open Access Journals (Sweden)

Sadhan Gope

2017-02-01

Full Text Available Integration of renewable energy like wind or solar energy creates a huge pressure to the system operator (SO to ensure the congestion free transmission network under deregulated power market. Congestion Management (CM with integration of wind farm in double auction electricity market are described in this work to minimize fuel cost, system losses and locational marginal price (LMP of the system. Location of Wind Farm (WF is identified based by using Bus sensitivity factor (BSF, which is also used for selection of load bus for double auction bidding (DAB. The impacts of wind farm in congested power system under deregulated environment have been investigated in this work. Modified 39-bus New England test system is used for demonstrate the effectiveness of the presented approach by using Sequential Quadratic Programming (SQP.

Market Evolution: Wholesale Electricity Market Design for 21st Century Power Systems

Energy Technology Data Exchange (ETDEWEB)

Cochran, Jaquelin [National Renewable Energy Lab. (NREL), Golden, CO (United States); Miller, Mackay [National Renewable Energy Lab. (NREL), Golden, CO (United States); Milligan, Michael [National Renewable Energy Lab. (NREL), Golden, CO (United States); Ela, Erik [National Renewable Energy Lab. (NREL), Golden, CO (United States); Arent, Douglas [National Renewable Energy Lab. (NREL), Golden, CO (United States); Bloom, Aaron [National Renewable Energy Lab. (NREL), Golden, CO (United States); Futch, Matthew [IBM, Northcastle, NY (United States); Kiviluoma, Juha [VTT Technical Research Centre of Finland, Espo (Finland); Holtinnen, Hannele [VTT Technical Research Centre of Finland, Espo (Finland); Orths, Antje [Energinet.dk (Denmark); Gomez-Lazaro, Emilio [University of Castilla-La Mancha, Real (Spain); Martin-Martinez, Sergio [University of Castilla-La Mancha, Real (Spain); Kukoda, S. [International Copper Association, New York, NY (United States); Garcia, Glycon [International Copper Association, New York, NY (United States); Mikkelsen, Kim M. [Global Green Growth Inst., Seoul (Korea); Yongqiang, Zhao [China National Renewable Energy Center, Beijing (China); Sandholt, Kaare [China National Renewable Energy Center, Beijing (China)

2013-10-01

Demand for affordable, reliable, domestically sourced, and low-carbon electricity is on the rise. This growing demand is driven in part by evolving public policy priorities, especially reducing the health and environmental impacts of electricity service and expanding energy access to under-served customers. Consequently, variable renewable energy resources comprise an increasing share ofelectricity generation globally. At the same time, new opportunities for addressing the variability of renewables are being strengthened through advances in smart grids, communications, and technologies that enable dispatchable demand response and distributed generation to extend to the mass market. A key challenge of merging these opportunities is market design -- determining how to createincentives and compensate providers justly for attributes and performance that ensure a reliable and secure grid -- in a context that fully realizes the potential of a broad array of sources of flexibility in both the wholesale power and retail markets. This report reviews the suite of wholesale power market designs in use and under consideration to ensure adequacy, security, and flexibilityin a landscape of significant variable renewable energy. It also examines considerations needed to ensure that wholesale market designs are inclusive of emerging technologies, such as demand response, distributed generation, and storage.

Using public relations/marketing communications to gain a competitive advantage in the US power market

Energy Technology Data Exchange (ETDEWEB)

Katzman, L.R. [Full Spectrum Communications, Loudonville, NY (United States)

1996-12-31

For many industries throughout the United States, deregulation will make or break a company. In the power generation and transmission arena, deregulation is currently underway. Many utilities and power generation equipment suppliers alike are being forced to compete very differently in this new market due to legislative changes. Also, as many companies reorganize, cut costs and downsize, public relations and marketing communications (PR/marcom) is often one of the first programs to be cut. This paper will offer some solid public relationships that can enhance a company`s image, help it generate sales leads and assist it in staying healthy in this competitive power area. Also provided will be a discussion of marketing communications and why PR/marcom efforts should not be discarded but stepped up during downsizing.

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

The Hydroelectric Business Unit of Ontario Power Generation Inc

International Nuclear Information System (INIS)

Gaboury, J.

2001-01-01

The focus of this presentation was on the generation and sale of electricity. Prior to deregulation, companies that generated electricity had a readily available customer base to whom the electricity could be sold. The author discussed some of the changes affecting the industry as a result of deregulation of the electricity market in Ontario: the increasing number of companies, as well as the increased number of generators supplying power within the province. Currently 85 per cent of the generation in Ontario is met by Ontario Power Generation (OPG) and this percentage will decrease through de-control. De-control can be achieved in a variety of ways, either through the sale of assets, leases, asset swaps. The market rules dictate that OPG not control in excess of 35 per cent of the generation supply in Ontario, OPG is examining the situation. New supply being constructed or new interconnections with neighboring markets could affect the total assets that would have to be de-controlled. OPG has a mix of generation that includes hydroelectric, fossil, and nuclear, as well as a single wind turbine. Green power, defined as electricity generation deemed less intrusive environmentally than most traditional generation, includes wind, water, landfill gas, solar and others, and could affect the mix of generation. It is expected that there will be a niche market for green power, especially when one considers the reduction in emissions. It could represent a viable option for smaller startup companies, as less capital is required. The options for selling the power, either to the spot market or by entering into a bilateral contract with another customer, were explained

Integrated Simulation Development and Decision Support Tool-Set for Utility Market and Distributed Solar Power Generation Electricore, Inc.

Energy Technology Data Exchange (ETDEWEB)

Daye, Tony [Green Power Labs (GPL), San Diego, CA (United States)

2013-09-30

This project will enable utilities to develop long-term strategic plans that integrate high levels of renewable energy generation, and to better plan power system operations under high renewable penetration. The program developed forecast data streams for decision support and effective integration of centralized and distributed solar power generation in utility operations. This toolset focused on real time simulation of distributed power generation within utility grids with the emphasis on potential applications in day ahead (market) and real time (reliability) utility operations. The project team developed and demonstrated methodologies for quantifying the impact of distributed solar generation on core utility operations, identified protocols for internal data communication requirements, and worked with utility personnel to adapt the new distributed generation (DG) forecasts seamlessly within existing Load and Generation procedures through a sophisticated DMS. This project supported the objectives of the SunShot Initiative and SUNRISE by enabling core utility operations to enhance their simulation capability to analyze and prepare for the impacts of high penetrations of solar on the power grid. The impact of high penetration solar PV on utility operations is not only limited to control centers, but across many core operations. Benefits of an enhanced DMS using state-of-the-art solar forecast data were demonstrated within this project and have had an immediate direct operational cost savings for Energy Marketing for Day Ahead generation commitments, Real Time Operations, Load Forecasting (at an aggregate system level for Day Ahead), Demand Response, Long term Planning (asset management), Distribution Operations, and core ancillary services as required for balancing and reliability. This provided power system operators with the necessary tools and processes to operate the grid in a reliable manner under high renewable penetration.

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)

Mathematical models and methods for analysis of distributed power generation on market conditions

DEFF Research Database (Denmark)

Schaumburg-Müller, Camilla

2008-01-01

day and a common hourly electricity spot price is found. Intra-day markets for balancing power also exist. The raison d’etre for this type of market is that although supply and demand are balanced on a day-ahead basis, actual demand is impossible to forecast with complete accuracy. Thus on the day...... of operation actual demand and planned supply never match precisely. The system operator must then procure so-called balancing power in the intra-day market to maintain the physical balance of the system at all times. The present thesis considers the effects of large amounts of distributed electricity...... in advance as opposed to purchasing the needed volumes in the intra-day balancing market. The thesis itself provides an introduction to the Nordic power system and market with emphasis on the Danish situation. After presenting a few classic topics in power system operation, the situation post...

Prospects of the French offshore wind power market

International Nuclear Information System (INIS)

Anon.

2011-12-01

This market study about the French offshore wind power industry presents: 1 - the bases of the offshore wind power market: wind turbine operation principle, foundations and scale change; 2 - business model of offshore wind power projects: logistical, technical and financial challenges, cost structure and profitability of projects (investment, power generation costs, incentive mechanisms), project development time; 3 - European and French regulatory framework: the energy/climate package, the French 'Grenelle de l'Environnement' commitments for the development of renewable energies; 4 - start up of the French offshore wind power market: the onshore wind power market looking for growth relaying, the lateness of the offshore market, outlines of the call for bids and of the first phase launching (schedule, selected sites and candidates), market development stakes and opportunities; 5 - offshore wind power overview in Europe - lessons for the French market prospects: status of the European market (installed power/country, projects in progress), European leaders of the market (analysis of the British, Danish and German markets successful takeoff), specificities of the French market (are all favourable conditions present?); 6 - takeoff of the French market - what opportunities on the overall value chain?: front-end of the industry (manufacturers and component suppliers: industry structure, competition, R and D, subcontractors in France), back-end of the industry (developers/operators: sector analysis, ambitions, alliances, competences), specific French know-how in offshore installation and connection of wind turbines (reconversion of harbour areas, re-positioning of shipbuilding industry). (J.S.)

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 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...

75 FR 15429 - Dynegy Power Marketing, Inc;. Notice of Filing

Science.gov (United States)

2010-03-29

... Marketing, Inc;. Notice of Filing March 22, 2010. Take notice that on December 15, 2008, Dynegy Power Marketing, Inc., Dynegy Power Corp., El Segundo Power LLC, Long Beach Generation LLC, Cabrillo Power I LLC... Commission, 888 First Street, NE., Washington, DC 20426. This filing is accessible online at http://www.ferc...

Market protocols in ERCOT and their effect on wind generation

International Nuclear Information System (INIS)

Sioshansi, Ramteen; Hurlbut, David

2010-01-01

Integrating wind generation into power systems and wholesale electricity markets presents unique challenges due to the characteristics of wind power, including its limited dispatchability, variability in generation, difficulty in forecasting resource availability, and the geographic location of wind resources. Texas has had to deal with many of these issues beginning in 2002 when it restructured its electricity industry and introduced aggressive renewable portfolio standards that helped spur major investments in wind generation. In this paper we discuss the issues that have arisen in designing market protocols that take account of these special characteristics of wind generation and survey the regulatory and market rules that have been developed in Texas. We discuss the perverse incentives some of the rules gave wind generators to overschedule generation in order to receive balancing energy payments, and steps that have been taken to mitigate those incentive effects. Finally, we discuss more recent steps taken by the market operator and regulators to ensure transmission capacity is available for new wind generators that are expected to come online in the future.

Carbon pricing, nuclear power and electricity markets

Energy Technology Data Exchange (ETDEWEB)

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

2012-07-01

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

Carbon pricing, nuclear power and electricity markets

International Nuclear Information System (INIS)

Cameron, R.; Keppler, J. H.

2012-01-01

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

Environmental impact of power generation

International Nuclear Information System (INIS)

Hester, R.E.; Harrison, R.M.

1999-01-01

A series of articles offers answers to questions on the environmental consequences and impact on man of the power generation industry. Subjects discussed in detail include: (i) acid rain and climate change and how the generators of electricity have been expected to play a role disproportionate to their deleterious contributions in improving the situation; (ii) recently adopted air quality management approaches with regard to airborne emissions from power stations and motor vehicles; (iii) the evolution of the UK power industry towards sustainability through considerations for the environment and use of resources in a liberalised market; (iv) the Best Practicable Environmental Option approach to the design and siting of power stations; (v) the environmental impact of nuclear power generation and (vi) electromagnetic fields and the possible effects on man of transmitting electricity in overhead power lines

Well-functioning balancing markets. A prerequisite for wind power integration

International Nuclear Information System (INIS)

Vandezande, Leen; Meeus, Leonardo; Belmans, Ronnie; Saguan, Marcelo; Glachant, Jean-Michel

2010-01-01

This article focuses on the design of balancing markets in Europe taking into account an increasing wind power penetration. In several European countries, wind generation is so far not burdened with full balancing responsibility. However, the more wind power penetration, the less bearable for the system not to allocate balancing costs to the responsible parties. Given the variability and limited predictability of wind generation, full balancing exposure is however only feasible conditionally to well-functioning balancing markets. On that account, recommendations ensuring an optimal balancing market design are formulated and their impact on wind generation is assessed. Taking market-based or cost-reflective imbalance prices as the main objective, it is advised that: (1) the imbalance settlement should not contain penalties or power exchange prices, (2) capacity payments should be allocated to imbalanced BRPs via an additive component in the imbalance price and (3) a cap should be imposed on the amount of reserves. Efficient implementation of the proposed market design may require balancing markets being integrated across borders. (author)

Wind power, network congestion and hydro resource utilisation in the Norwegian power market

International Nuclear Information System (INIS)

Foersund, Finn; Singh, Balbir; Jensen, Trond; Larsen, Cato

2005-01-01

Capacity constraints in electricity networks can have important impacts on utilization of new renewable energy (RE) capacity and incumbent generation resources. Neglect of such impacts in development of RE resources can result in crowding-out of incumbent generation. This trade-off is particularly problematic if the incumbent generation also consists of renewable sources, such as hydropower in the Norwegian electricity system. This paper presents a numerical analysis of the current wind-power development plans in North Norway and their impacts on utilization of hydropower. Policy simulations in paper are conducted using a dynamic partial equilibrium model that is calibrated to reflect the structure of the Nordic power market. The paper draws conclusion and policy implications for integration of RE resources in the Norwegian power market. (Author)

Nuclear power within liberalised electricity markets

International Nuclear Information System (INIS)

Kidd, Stephen W.

2002-01-01

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

The market value of nuclear power

International Nuclear Information System (INIS)

Gupta, N.K.; Thompson, H.G. Jr.

1999-01-01

What are the factors and circumstances that have made some plants more valuable to others than to their original owners? What is currently keeping nuclear plants, with their relatively low operating cost and environmental impacts, at the bottom of the heap? Why will some nuclear plants have significantly higher market values in the future while others will fail? What circumstances are likely to change in the near future that could significantly alter this market? In this article, the authors address these questions and attempt to provide insights into the unique market for nuclear power. The authors will proceed by first introducing the components of generation asset valuation, then discussing recent experiences with the sales of non-nuclear and nuclear power plants. Next, the authors will provide some explanation for why non-nuclear assets are enjoying a robust market while the market for nuclear plants remains immature. Finally, the authors present an analysis of the future value of nuclear power and a view of one road to take to get there

The market value of nuclear power

Energy Technology Data Exchange (ETDEWEB)

Gupta, N.K.; Thompson, H.G. Jr.

1999-10-01

What are the factors and circumstances that have made some plants more valuable to others than to their original owners? What is currently keeping nuclear plants, with their relatively low operating cost and environmental impacts, at the bottom of the heap? Why will some nuclear plants have significantly higher market values in the future while others will fail? What circumstances are likely to change in the near future that could significantly alter this market? In this article, the authors address these questions and attempt to provide insights into the unique market for nuclear power. The authors will proceed by first introducing the components of generation asset valuation, then discussing recent experiences with the sales of non-nuclear and nuclear power plants. Next, the authors will provide some explanation for why non-nuclear assets are enjoying a robust market while the market for nuclear plants remains immature. Finally, the authors present an analysis of the future value of nuclear power and a view of one road to take to get there.

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

International Nuclear Information System (INIS)

Morthorst, P.E.

2005-06-01

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

Merger market power analysis: Pacific Enterprises and Enova Corporation

International Nuclear Information System (INIS)

Bailey, S.

1999-01-01

The Pacific Enterprises - Enova (PE-Enova) merger may be viewed as an example of the new breed of gas and power 'convergence' mergers. The merger involved the combination of a large gas distribution utility and a contiguous gas and electric utility located in Southern California. As with most mergers, the PE-Enova merger was proposed to federal and state regulators as an opportunity to achieve ratepayer savings. However, the merger also presented an issue of vertical market power involving the substantial electric generation capacity served by Southern California Gas Company (SoCalGas) and its potential impact on electric market prices, and the associated revenues for generation assets owned by San Diego Gas and Electric (SDGandE). In order for the merger to proceed, the approval of at least five separate State and federal regulators would be required. Although much of the attention of state regulators, proponents, and intervenors surrounded the division of synergy savings between ratepayers and shareholders, the analysis of the potential for market power abuse was extensive. Intervenors presented numerous complex arguments regarding the potential adverse effects of the merger on competition. In particular, intervenors argued that the combined company would manipulate its storage and transport operations to influence the delivered price of gas to California generators, and therefore, the price of power in the wholesale electric market. The arguments surrounding the existence and impacts of market power in this case are of interest in the understanding the nature and complexity of factors that may be considered in evaluating mergers. The proceeding also provides insight into how regulators are grappling with market power issues associated with convergence mergers, and weigh merger costs and benefits

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

International Nuclear Information System (INIS)

Lise, Wietze; Linderhof, Vincent; Kuik, Onno; Kemfert, Claudia; Ostling, Robert; Heinzow, Thomas

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 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)

Electricity market design for generator revenue sufficiency with increased variable generation

International Nuclear Information System (INIS)

Levin, Todd; Botterud, Audun

2015-01-01

We present a computationally efficient mixed-integer program (MIP) that determines optimal generator expansion decisions, and hourly unit commitment and dispatch in a power system. The impact of increasing wind power capacity on the optimal generation mix and generator profitability is analyzed for a test case that approximates the electricity market in Texas (ERCOT). We analyze three market policies that may support resource adequacy: Operating Reserve Demand Curves (ORDC), Fixed Reserve Scarcity Prices (FRSP) and fixed capacity payments (CP). Optimal expansion plans are comparable between the ORDC and FRSP implementations, while capacity payments may result in additional new capacity. The FRSP policy leads to frequent reserves scarcity events and corresponding price spikes, while the ORDC implementation results in more continuous energy prices. Average energy prices decrease with increasing wind penetration under all policies, as do revenues for baseload and wind generators. Intermediate and peak load plants benefit from higher reserve prices and are less exposed to reduced energy prices. All else equal, an ORDC approach may be preferred to FRSP as it results in similar expansion and revenues with less extreme energy prices. A fixed CP leads to additional new flexible NGCT units, but lower profits for other technologies. - Highlights: • We model three market policies for resource adequacy in power systems with wind. • Unit expansion is comparable between ORDCs and fixed reserves scarcity pricing. • ORDCs lead to a more continuous spectrum of energy prices and fewer price spikes. • Revenues for baseload generators generally decrease with increasing wind penetration. • Capacity payments lead to additional NGCT units and lower energy prices.

Green certificates and market power in the Nordic power market

DEFF Research Database (Denmark)

Amundsen, Eirik S; Bergman, Lars

2012-01-01

principles and a numerical model based on that to investigate the Swedish TGC market operating in a setting of a common Nordic electricity market. The analysis shows that Swedish producers may exercise market power using the TGC-market but that this problem will be eliminated by opening the TGC-market......The purpose of this study is to elucidate under which circumstances, how, and to what extent market power on a Tradable Green Certificates (TGC) market can be used to affect an entire electricity market. There are basically two reasons for being concerned with this. One is that a small number...

Decision support for choice optimal power generation projects: Fuzzy comprehensive evaluation model based on the electricity market

International Nuclear Information System (INIS)

Liang Zhihong; Yang Kun; Sun Yaowei; Yuan Jiahai; Zhang Hongwei; Zhang Zhizheng

2006-01-01

In 2002, China began to inspire restructuring of the electric power sector to improve its performance. Especially, with the rapid increase of electricity demand in China, there is a need for non-utility generation investment that cannot be met by government finance alone. However, a first prerequisite is that regulators and decision-makers (DMs) should carefully consider how to balance the need to attract private investment against the policy objectives of minimizing monopoly power and fostering competitive markets. So in the interim term of electricity market, a decentralized decision-making process should eventually replace the centralized generation capacity expansion planning. In this paper, firstly, on the basis of the current situation, a model for evaluating generation projects by comprehensive utilization of fuzzy appraisal and analytic hierarchy process (AHP) is developed. Secondly, a case study of generation project evaluation in China is presented to illustrate the effectiveness of the model in selecting optimal generation projects and attracting private investors. In the case study, with considerations of attracting adequate private investment and promoting energy conservation in China, five most promising policy instruments selected as evaluation factors include project duration, project costs, predicted on-grid price level, environmental protection, enterprise credit grading and performance. Finally, a comprehensive framework that enables the DM to have better concentration and to make more sound decisions by combining the model proposed with modern computer science is designed

Green Power Marketing in the United States: A Status Report (Fifth Edition)

Energy Technology Data Exchange (ETDEWEB)

Swezey, B.; Bird, L.

2000-08-04

For the first time in many decades, consumers are being given a choice of who supplies their electric power and how that power is generated. One of these choices is to support electricity generation from more environmentally beneficial energy sources. The term green power generally refers to electricity supplied from renewable energy sources. By some estimates, nearly one-quarter of all U.S. consumers will have the option to purchase green power by the year 2000, either from their regulated utility provider or in competitive markets. As competition spreads in the electric power industry, more consumers will have this choice. The purpose of this brief is to provide electric industry analysts with information on green power market trends. Descriptive information on green power marketing activities in competitive and regulated market settings is included.

Wind power and the conditions at a liberalized power market

International Nuclear Information System (INIS)

Morthorst, P.E.

2003-01-01

Wind power is undergoing a rapid development nationally as well as globally and in a number of countries covers an increasing part of the power supply. At the same time an ongoing liberalization of power markets is taking place and to an increasing extent the owners of wind power plants will themselves have to be responsible for trading the power at the spot market and financially handling the balancing. In the western part of Denmark (Jutland/Funen area), wind-generated power from time to time covers almost 100% of total power consumption. Therefore some examples are chosen from this area to analyse in more detail how well large amounts of wind power in the short-term are handled at the power spot market. It turns out that there is a tendency that more wind power in the system in the short run leads to relatively lower spot prices, while less wind power implies relatively higher spot prices, although, with the exception of December 2002, in general no strong relationship is found. A stronger relationship is found at the regulating market, where there is a fairly clear tendency that the more wind power produced, the higher is the need for down-regulation, and, correspondingly, the less wind power produced, the higher is the need for up-regulation. In general for the Jutland/Funen area the average cost of down-regulation is calculated as 1 2 c euros/kWh regulated for 2002, while the cost of up-regulation amounts to 0 7 c euros/kWh regulated. (author)

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

International Nuclear Information System (INIS)

Milligan, M.R.

2000-01-01

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

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

Effects of series compensation on spot price power markets

International Nuclear Information System (INIS)

Shrestha, G.B.; Wang Feng

2005-01-01

The operation of a deregulated power market becomes more complex as the generation scheduling is dependent on suppliers' and consumers' bids. With large number of transactions in the power market changing in time, it is more likely for some transmission lines to face congestion. Series compensation, such as TCSC, with its ability to directly control the power flow can be very helpful to improve the operation of transmission networks. The effects of TCSC on the operation of a spot price power market are studied in this paper using the modified IEEE 14-bus system. Optimal Power Flow incorporating TCSC is used to implement the spot price market. Linear bids are used to model suppliers' and consumers' bids. Issues of location and cost of TCSC are discussed. The effects of levels of TCSC compensation on wide range of system quantities are studied. The effects on the total social benefit, the spot prices, transmission congestion, total generation and consumption, benefit to individual supplier and consumer etc. are discussed. It is demonstrated that though use of TCSC makes the system more efficient and augments competition in the market, it is not easy to establish general relationships between the levels of compensation and various market quantities. Simulation studies like these can be used to assess the effects of TCSC in specific systems. (Author)

Hybrid Pricing in a Coupled European Power Market with More Wind Power

OpenAIRE

Bjørndal, Endre; Bjørndal, Mette; Cai, Hong; Panos, Evangelos

2015-01-01

In the European market, the promotion of wind power leads to more network congestion. Zonal pricing (market coupling), which does not take the physical characteristics of transmission into account, is the most commonly used method to relieve congestion in Europe. Zonal pricing fails to provide adequate locational price signals regarding the energy resource scarcity and thus creates a large amount of unscheduled cross-border flows originating from wind-generated power, making the interconne...

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

Credit risk in liberalised power and natural gas markets

International Nuclear Information System (INIS)

Lapson, E.; Hunter, Richard

1999-01-01

This chapter examines the relationship of market structure and price volatility to credit risk, and discusses credit risk and energy market structures, credit risk in bilateral contracts, market evolution, and the effect of liberalising power markets on credit quality considering the power liberalising in Europe, the pace of change, and the new risks and opportunities. The market structure in Europe is addressed, and the EU Directive 96/92/EC, structural requirements, access for new generation capacity, and transmission costs are considered. Details of the liberalisation in the UK electricity market, the German market, and the Nord Pool are given, and the best credit practices in bilateral markets, and the quantifying of expected credit loss are described. Panels highlighting the need to know your counterparty in evaluating and negotiating bilateral contracts, and lessons learnt from the June 1998 US power price spike are presented

Generation capacity expansion planning in deregulated electricity markets

Science.gov (United States)

Sharma, Deepak

With increasing demand of electric power in the context of deregulated electricity markets, a good strategic planning for the growth of the power system is critical for our tomorrow. There is a need to build new resources in the form of generation plants and transmission lines while considering the effects of these new resources on power system operations, market economics and the long-term dynamics of the economy. In deregulation, the exercise of generation planning has undergone a paradigm shift. The first stage of generation planning is now undertaken by the individual investors. These investors see investments in generation capacity as an increasing business opportunity because of the increasing market prices. Therefore, the main objective of such a planning exercise, carried out by individual investors, is typically that of long-term profit maximization. This thesis presents some modeling frameworks for generation capacity expansion planning applicable to independent investor firms in the context of power industry deregulation. These modeling frameworks include various technical and financing issues within the process of power system planning. The proposed modeling frameworks consider the long-term decision making process of investor firms, the discrete nature of generation capacity addition and incorporates transmission network modeling. Studies have been carried out to examine the impact of the optimal investment plans on transmission network loadings in the long-run by integrating the generation capacity expansion planning framework within a modified IEEE 30-bus transmission system network. The work assesses the importance of arriving at an optimal IRR at which the firm's profit maximization objective attains an extremum value. The mathematical model is further improved to incorporate binary variables while considering discrete unit sizes, and subsequently to include the detailed transmission network representation. The proposed models are novel in the

Wind up with continuous intra-day electricity markets? The integration of large-share wind power generation in Denmark

International Nuclear Information System (INIS)

Karanfil, Fatih; Li, Yuanjing

2015-01-01

This paper suggests an innovative idea to examine the functionality of an electricity intra-day market by testing causality among its fundamental components. As fluctuations of poorly predicted wind power generation are challenging the stability of the current electricity system, an intra-day market design can play an important role in managing wind forecast errors. Using Danish and Nordic data, it investigates the main drivers of the price difference between the intra-day and day-ahead markets, and causality between wind forecast errors and their counterparts. Our results show that the wind and conventional generation forecast errors significantly cause the intra-day price to differ from the day-ahead price, and that the relative intra-day price decreases with the unexpected amount of wind generation. Cross-border electricity exchanges are found to be important to handle wind forecast errors. Additionally, some zonal differences with respect to both causality and impulse responses are detected. This paper provides the first evidence on the persuasive functioning of the intra-day market in the case of Denmark, whereby intermittent production deviations are effectively reduced, and wind forecast errors are jointly handled through the responses from demand, conventional generation, and intra-day international electricity trade. (authors)

Photovoltaic power. Industries and market

International Nuclear Information System (INIS)

Muller, J.C.

2007-01-01

Photovoltaic conversion should become competitive with respect to other power generation sources before the second half of the 21. century. This article treats first of the different solar cell technologies (monocrystalline and polycrystalline silicon, thin film silicon, cadmium telluride-based materials, copper-indium selenide-based materials, multi-spectral cells, organic cells) with respect to their conversion efficiency, production and energy cost, and environmental impact. A second part describes the solar cells market, its growth with respect to the different applications (isolated sites, decentralized generation, power plants). A third part deals with the perspectives of photovoltaic conversion with respect to the advance in the development of new cell materials. (J.S.)

Future independent power generation and implications for instruments and controls

International Nuclear Information System (INIS)

Williams, J.H.

1991-01-01

This paper reports that the independent power producers market is comprised of cogeneration, small power generation, and independent power production (IPP) segments. Shortfalls in future electric supply are expected to lead to significant growth in this market. The opportunities for instruments and controls will shift from traditional electric utility applications to the independent power market with a more diverse set of needs. Importance will be placed on system reliability, quality of power and increased demand for clean kWh

Auction game in electric power market place

International Nuclear Information System (INIS)

Kumar, J.; Sheble, G.

1996-01-01

The power industry in the US is presently an evolving changing business environment. While planning to meet future peak demand is still a concern, the efficient utilization of existing generation and transmission resources is fast becoming a primary interest. This interest suggests a move from cost-based market operations to price based market operations. Auction market structure is one of the various ways to perform price based operation. Such a market place would be very new and challenging to all players of the electric power industry. This paper describes an overview of the new business environment. The paper presents a detailed description of the auction game. The trading objectives in the bidding game are defined. The framework of auction process is described by defining the rules to play the game. Finally, strategies for market players are discussed

A comparison between intraday market and capacity market to deal with wind power forecasting errors

Energy Technology Data Exchange (ETDEWEB)

Boer, W.W. de; Dekker, G.W.; Frunt, J.; Duvoort, M.R. [DNV-KEMA, Arnhem (Netherlands); Jokic, A. [Faculty of Mechanical Engineering and Naval Architecture, Zagreb (Croatia)

2012-07-01

Future power systems with large amounts of renewable generation require more regulating power to guarantee reliability. The ancillary service market proposed in this paper guarantees both a contracted amount of regulating power in advance and an effective activation of those resources by means of the secondary controller of the TSO. Simulation results show that a certain reliability level can be maintained, depending on incentives the TSO uses to reduce remaining imbalances. This market design shows to be preferable in some aspects compared to an intraday market, which is suboptimal in balancing and a relative large remaining imbalance occurs. (orig.)

Secure provision of reactive power ancillary services in competitive electricity markets

Science.gov (United States)

El-Samahy, Ismael

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

Probabilistic decision model of wind power investment and influence of green power market

International Nuclear Information System (INIS)

Gillenwater, Michael

2013-01-01

This paper presents results from a model of a representative wind power investor's decision making process using a Monte Carlo simulation of a project financial analysis. Data, in the form of probability distribution functions (PDFs) for key input variables were collected from interviews with investors and other professionals active in the U.S. wind power industry using a formal expert elicitation protocol. This study presents the first quantitative estimates of the effect of the U.S. voluntary Renewable Energy Certificate (REC) market on renewable energy generation. The results indicate that the investment decisions of wind power project developers in the United States are unlikely to have been altered by the voluntary REC market. The problem with the current voluntary REC market is that it does not offer developers a reliable risk-adjusted revenue stream. Consequently, the claims by U.S. green power retailers and promoters that voluntary market RECs result in additional wind power projects lack credibility. Even dramatic increases in voluntary market REC prices, in the absence of long-term contracts, were found to have only a small effect on investor behavior. - Highlights: • I use a formal expert elicitation to collect data from wind power investors. • I use a Monte Carlo model to look at the influence of Renewable Energy Certificates on investment. • Investment decisions are unlikely to have been altered by the voluntary REC market. • Claims that the U.S. green power market result in additional wind power lack credibility

Strategic bidding for wind power producers in electricity markets

International Nuclear Information System (INIS)

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

2014-01-01

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

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

DEFF Research Database (Denmark)

Soares, Tiago; Santos, Gabriel; Pinto, Tiago

2015-01-01

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

Financial transmission rights meet Cournot: How TCCs curb market power

International Nuclear Information System (INIS)

Stoft, S.

1999-01-01

This paper reconsiders the problem of market power when generators face a demand curve limited by a transmission constraint. After demonstrating that the problem's importance originates in an inherent ambiguity in Cournot-Nash theory, the author reviews Oren's argument that generators in this situation capture all congestion rents. In the one-line case, this argument depends on an untested hypothesis while in the three-line case, the Nash equilibrium was misidentified. Finally, the argument that financial transmission rights (and TCCs in particular) will have zero market value is refuted by modeling the possibility of their purchase by generators. This allows transmission owners, who initially own the TCCs, to capture some of the congestion rent. In fact when total capacity exceeds line capacity by more than the capacity of the largest generator, TCCs should attain their perfectly competitive value, thereby curbing the market power of generators

Stochastic reactive power market with volatility of wind power considering voltage security

International Nuclear Information System (INIS)

Kargarian, A.; Raoofat, M.

2011-01-01

While wind power generation is growing rapidly around the globe; its stochastic nature affects the system operation in many different aspects. In this paper, the impact of wind power volatility on the reactive power market is taken into account. The paper presents a novel stochastic method for optimal reactive power market clearing considering voltage security and volatile nature of the wind. The proposed optimization algorithm uses a multiobjective nonlinear programming technique to minimize market payment and simultaneously maximize voltage security margin. Considering a set of probable wind speeds, in the first stage, the proposed algorithm seeks to minimize expected system payment which is summation of reactive power payment and transmission loss cost. The object of the second stage is maximization of expected voltage security margin to increase the system loadability and security. Finally, in the last stage, a multiobjective function is presented to schedule the stochastic reactive power market using results of two previous stages. The proposed algorithm is applied to IEEE 14-bus test system. As a benchmark, Monte Carlo Simulation method is utilized to simulate the actual market of given period of time to evaluate results of the proposed algorithm, and satisfactory results are achieved. -- Highlights: →The paper proposes a new algorithm for stochastic reactive power market clearing. →The stochastic nature of the wind which impacts the system operation and market clearing process, is taken into account. →The paper suggests an expected voltage stability margin and optimizes it in conjunction with expected total market payment. →To clear the market with two mentioned objective functions, a three-stage multiobjective nonlinear programming is implemented. →Also, a simple method is suggested to determine a suitable priority coefficient between two individual objective functions.

Designing incentive market mechanisms for improving restructured power system reliabilities

DEFF Research Database (Denmark)

Ding, Yi; Østergaard, Jacob; Wu, Qiuwei

2011-01-01

state. The reliability management of producers usually cannot be directly controlled by the system operators in a restructured power system. Producers may have no motivation to improve their reliabilities, which can result in serious system unreliability issues in the new environment. Incentive market...... mechanisms for improving the restructured power system reliabilities have been designed in this paper. In the proposed incentive mechanisms, penalty will be implemented on a producer if the failures of its generator(s) result in the variation of electricity prices. Incentive market mechanisms can motivate......In a restructured power system, the monopoly generation utility is replaced by different electricity producers. There exists extreme price volatility caused by random failures by generation or/and transmission systems. In these cases, producers' profits can be much higher than those in the normal...

Market power in electricity markets: Beyond concentration measures

International Nuclear Information System (INIS)

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

1999-01-01

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

Electric power generation the changing dimensions

CERN Document Server

Tagare, D M

2011-01-01

"This book offers an analytical overview of established electric generation processes, along with the present status & improvements for meeting the strains of reconstruction. These old methods are hydro-electric, thermal & nuclear power production. The book covers climatic constraints; their affects and how they are shaping thermal production. The book also covers the main renewable energy sources, wind and PV cells and the hybrids arising out of these. It covers distributed generation which already has a large presence is now being joined by wind & PV energies. It covers their accommodation in the present system. It introduces energy stores for electricity; when they burst upon the scene in full strength are expected to revolutionize electricity production. In all the subjects covered, there are references to power marketing & how it is shaping production. There will also be a reference chapter on how the power market works"--Provided by publisher.

Controlling market power and price spikes in electricity networks: Demand-side bidding.

Science.gov (United States)

Rassenti, Stephen J; Smith, Vernon L; Wilson, Bart J

2003-03-04

In this article we report an experiment that examines how demand-side bidding can discipline generators in a market for electric power. First we develop a treatment without demand-side bidding; two large firms are allocated baseload and intermediate cost generators such that either firm might unilaterally withhold the capacity of its intermediate cost generators from the market to benefit from the supracompetitive prices that would result from only selling its baseload units. In a converse treatment, ownership of some of the intermediate cost generators is transferred from each of these firms to two other firms such that no one firm could unilaterally restrict output to spawn supracompetitive prices. Having established a well controlled data set with price spikes paralleling those observed in the naturally occurring economy, we also extend the design to include demand-side bidding. We find that demand-side bidding completely neutralizes the exercise of market power and eliminates price spikes even in the presence of structural market power.

Fuel-cycle analysis of early market applications of fuel cells: Forklift propulsion systems and distributed power generation

Energy Technology Data Exchange (ETDEWEB)

Elgowainy, Amgad; Gaines, Linda; Wang, Michael [Center for Transportation Research, Argonne National Laboratory, 9700 South Cass Ave, Argonne, IL 60439 (United States)

2009-05-15

Forklift propulsion systems and distributed power generation are identified as potential fuel cell applications for near-term markets. This analysis examines fuel cell forklifts and distributed power generators, and addresses the potential energy and environmental implications of substituting fuel-cell systems for existing technologies based on fossil fuels and grid electricity. Performance data and the Greenhouse gases, Regulated Emissions, and Energy use in Transportation (GREET) model are used to estimate full fuel-cycle emissions and use of primary energy sources. The greenhouse gas (GHG) impacts of fuel-cell forklifts using hydrogen from steam reforming of natural gas are considerably lower than those using electricity from the average U.S. grid. Fuel cell generators produce lower GHG emissions than those associated with the U.S. grid electricity and alternative distributed combustion technologies. If fuel-cell generation technologies approach or exceed the target efficiency of 40%, they offer significant reduction in energy use and GHG emissions compared to alternative combustion technologies. (author)

Green power marketing in Canada: the state of the industry

International Nuclear Information System (INIS)

Dogterom, J.J.; McCulloch, M.; Pape-Salmon, A.

2002-12-01

The introduction of low-impact renewable energy in Canada's electricity supply is being accomplished using a relatively new, market-based initiative called green power marketing. Consumers now have the option of choosing their electricity supplier in two provinces, as a result of electricity market restructuring in those provinces. In some jurisdictions, green power is being offered at a premium price. Green power options are also available in other jurisdictions through the existing vertically integrated power companies. Green power programs are available to residential and commercial sector consumers in Alberta by ENMAX Energy and EPCOR Energy Services Inc. Prince Edward Island (Maritime Electric Company Ltd.) and Saskatchewan (SaskPower) both offer green power programs. The basis for those programs is specific amounts of electricity purchased. The success of the various programs was examined by the Pembina Institute for Appropriate Development, based on installed capacity of green power, consumer enrolment, product design, and environmental benefits. This report presented the results of this evaluation. For the purpose of this report, only those programs in place by the end of 2001 were considered. The environmental impacts of new generation technologies that were implemented as a result of green power marketing programs were analyzed. Historical emission data of the primary generation sources was used as a basis for the investigation and the quantification of the benefits in each province, since different types of power generation are used in the provinces. Greenhouse gases, acid deposition precursors, ground-level ozone precursors, particulate matter, and carbon monoxide are the significant emissions avoided through the use of green power. Included in the emissions reduction analysis in each province considered were life cycle emissions from conventional power sources and green power sources. Alberta, Saskatchewan and Prince Edward Island were the provinces

Requirements and operation of decentralised power plants in the changing power market

International Nuclear Information System (INIS)

Hoenings, Norbert; Hornig, Niels; Steinbach, Sebastian

2014-01-01

E.ON plans and realises distributed industrial power plants on the basis of contracting schemes. Target is to reduce energy costs without investment by the customer himself. Gas turbine CHP plants are very flexible and offer many possibilities for the operator to adjust optimally to a constantly changing energy market. This aspect is becoming increasingly important due to the increasing share of renewables. However, the economic situation for CHP plants has deteriorated significantly, due to the current market situation distorted by the subsidised renewable power generation. (orig.)

Conceptual survey of Generators and Power Electronics for Wind Turbines

Energy Technology Data Exchange (ETDEWEB)

Hansen, L.H.; Helle, L.; Blaabjerg, F.; Ritchie, E.; Munk-Nielsen, S.; Bindner, H.; Soerensen, P.; Bak-Jensen, B.

2001-12-01

This report presents a survey on generator concepts and power electronic concepts for wind turbines. The report is aimed as a tool for decision-makers and development people with respect to wind turbine manufactures, utilities, and independent system operators as well as manufactures of generators and power electronics. The survey is focused on the electric development of wind turbines and it yields an overview on: State of the art on generators and power electronics; future concepts and technologies within generators and power electronics; market needs in the shape of requirements to the grid connection, and; consistent system solutions, plus an evaluation of these seen in the prospect of market needs. This survey on of generator and power electronic concepts was carried out in co-operation between Aalborg University and Risoe National Laboratory in the scope of the research programme Electric Design and Control. (au)

Market Designs for High Levels of Variable Generation: Preprint

Energy Technology Data Exchange (ETDEWEB)

Milligan, M.; Holttinen, H.; Kiviluoma, J.; Orths, A.; Lynch, M.; Soder, L.

2014-10-01

Variable renewable generation is increasing in penetration in modern power systems, leading to higher variability in the supply and price of electricity as well as lower average spot prices. This raises new challenges, particularly in ensuring sufficient capacity and flexibility from conventional technologies. Because the fixed costs and lifetimes of electricity generation investments are significant, designing markets and regulations that ensure the efficient integration of renewable generation is a significant challenge. This papers reviews the state of play of market designs for high levels of variable generation in the United States and Europe and considers new developments in both regions.

Selling green power in California: Product, industry, and market trends

Energy Technology Data Exchange (ETDEWEB)

Wiser, R.H.; Pickle, S.J.

1998-05-01

As one of the first US stages to open its doors to retail electric competition, California offers an important opportunity to assess the effectiveness of green power marketing as a mechanism for supporting renewable energy. This report is an interim assessment of key green power product, industry, and market trends in California. The report identifies and analyzes: the potential size of the green power market in California; the companies participating in the green power market; the green power products being offered and their prices; the impact of the green market on renewable generators and the environment; and the influence of several public policies and non-governmental programs on the market for green power. Data used in this paper have been collected, in large part, from surveys and interviews with green power marketers that took place between December 1997 and April 1998. There remain legitimate concerns over the viability of green power marketing to support significant quantities of renewable energy and provide large environmental gains, and it is far too early to assess the overall strength of customer demand for renewable energy. A critical finding of this report is that, because of the high cost of acquiring and servicing residential customers and the low utility default service price, green power marketing affords new energy service providers one of the only viable entrees to California`s residential marketplace.

Selling green power in California: Product, industry, and market trends

International Nuclear Information System (INIS)

Wiser, R.H.; Pickle, S.J.

1998-05-01

As one of the first US stages to open its doors to retail electric competition, California offers an important opportunity to assess the effectiveness of green power marketing as a mechanism for supporting renewable energy. This report is an interim assessment of key green power product, industry, and market trends in California. The report identifies and analyzes: the potential size of the green power market in California; the companies participating in the green power market; the green power products being offered and their prices; the impact of the green market on renewable generators and the environment; and the influence of several public policies and non-governmental programs on the market for green power. Data used in this paper have been collected, in large part, from surveys and interviews with green power marketers that took place between December 1997 and April 1998. There remain legitimate concerns over the viability of green power marketing to support significant quantities of renewable energy and provide large environmental gains, and it is far too early to assess the overall strength of customer demand for renewable energy. A critical finding of this report is that, because of the high cost of acquiring and servicing residential customers and the low utility default service price, green power marketing affords new energy service providers one of the only viable entrees to California's residential marketplace

Optimised deployment of hydro-power generation facilities

International Nuclear Information System (INIS)

Werlen, K.

2004-01-01

This article discusses how the opening-up of the European electricity market has led to the creation of more room for manoeuvre in the deployment of the generation capacity of dam and pumped-storage-based hydropower facilities and low-head power stations. Software tools for the optimisation of the operation of power generation facilities that can take care of complex hydraulic interdependencies are described. The use of the software for the assessment of new installations being planned or of older installations being extended is examined. The influence of climatic conditions, market prices for power, the general requirements placed on the system and other influences on financial gain are looked at. The article makes recommendations on those factors influencing the design of the software and for its optimal use in practice

The Impact of Wind Power on European Natural Gas Markets

Energy Technology Data Exchange (ETDEWEB)

NONE

2012-09-06

Due to its clean burning properties, low investment costs and flexibility in production, natural gas is often put forward as the ideal partner fuel for wind power and other renewable sources of electricity generation with strongly variable output. This working paper examines three vital questions associated with this premise: 1) Is natural gas indeed the best partner fuel for wind power? 2) If so, to what extent will an increasing market share of wind power in European electricity generation affect demand for natural gas in the power sector? and 3) Considering the existing European natural gas markets, is natural gas capable of fulfilling this role of partner for renewable sources of electricity?.

Tackling investment challenges in power generation - in IEA countries

Energy Technology Data Exchange (ETDEWEB)

NONE

2007-07-01

In most IEA countries a new investment cycle in power generation is looming. A window of opportunity now exists to push for a cleaner and more efficient generation portfolio that could transform the power sector and help to build a more sustainable infrastructure lasting over the next 40-50 years. What are the recent trends and prospects for investment in power generation? What are the main drivers and barriers? This book assesses these issues and gives special emphasis to the question of how uncertainties may affect investment decisions. Uncertainties on CO{sub 2} constraints, on power plant licensing, on acceptability of nuclear power, on local opposition to any new energy infrastructure, on government support for specific generation technologies and on government policies on energy efficiency are particularly disturbing. Market liberalisation can also be a key uncertainty, but this may be greatly reduced and deliver considerable benefits if liberalisation is implemented whole-heartedly and backed by on-going government commitment. Government action is urgently needed: to reduce regulatory uncertainty for investors, to establish effective competitive markets and to give firm policy directions in those areas where markets fall short, such as in taking environmental costs and security of supply into account.

Canada in the world power market

International Nuclear Information System (INIS)

Anon.

1980-01-01

Canadian exports around the world are discussed. Canada is already playing a role, or has entered into an agreement with development of nuclear power in Argentina, South Korea, Romania and Mexico. Power generation projects are underway in parts of Asia, Africa and Pacific regions. Exports are taking place to Central and South America, Europe and the Middle East. Federal government assistance in the export market is also discussed. (T.I.)

Conceptual survey of generators and power electronics for wind turbines

DEFF Research Database (Denmark)

Hansen, L.H.; Helle, L.; Blaabjerg, F.

2002-01-01

This report presents a survey on generator concepts and power electronic concepts for wind turbines. The report is aimed as a tool for decision-makers and development people with respect to wind turbine manufactures, utilities, and independent systemoperators as well as manufactures of generators...... and power electronics. The survey is focused on the electric development of wind turbines and it yields an overview on: - State of the art on generators and power electronics. - future concepts andtechnologies within generators and power electronics. - market needs in the shape of requirements to the grid...... connection, and - consistent system solutions, plus an evaluation of these seen in the prospect of market needs. This survey on of generatorand power electronic concepts was carried out in co-operation between Aalborg University and Risø National Laboratory in the scope of the research programme Electric...

Latin America: market mechanisms and supply adequacy in power sector reforms

Energy Technology Data Exchange (ETDEWEB)

Hammons, T.J. [University of Glasgow, Glasgow (United Kingdom); Barroso, L.A. [PSR, Rio de Janeiro (Brazil); Rudnick, H. [Pontificia Universidad Catolica de Chile, Santiago (Chile)

2011-03-15

The process of transformation in government and operations in the power sector leads to interaction between increasing integrated markets and public agencies in charge of policy making, regulation and control. This is examined for Latin America where state and marketing power sector planning, contract auctions to assure supply adequacy in an uncertain market environment, cross-border contracts, financing challenges for generation investments, and auctions of contracts to secure supply adequacy in the second stage of power sector reform are discussed. First, the state and market in power sector planning reform and state policies in Latin America are considered. Here, present concerns; the state-market relationship (the position of regulation, globalisation, internationalisation), and state market in the energy sector (correction and adjustments) are reviewed. Case studies for Argentina and Brazil are briefly outlined. The paper then examines contract auctions to assure supply adequacy in an uncertain energy environment that are being explored to face supply problems over recent years in the Chilean electricity market, taking into account the unexpected restrictions in natural gas transfers from Argentina. Also discussed are supply adequacy mechanisms and cross-border contracts in the Central American regional electricity market including firm transmission rights and financing challenges for generation investments. The final part of the paper discusses auctions of contracts and energy call options to ensure supply adequacy in the Brazilian power sector reform. Here, first stage of power sector reform, what went wrong, the second stage of reform and the move towards energy supply auctions, energy supply auctions so far and what's next in the challenges of environmental constraints and electricity-gas integration are reviewed. The reform being proposed to the electric regulatory framework for wholesale transactions in Peru is also reviewed. Considered are bids for

Investments in liberalised power markets

International Nuclear Information System (INIS)

Grenaa Jensen, S.; Meibom, P.

2005-01-01

There is considerable uncertainty in the Nordic electricity system with respect to the long-term development in production capacity. The process towards liberalisation of the electricity sector started with a situation of a large capacity margin, but this margin is gradually vanishing. Since the potential investors in new production capacity are unaccustomed with investments under the new regime, it is unknown if and when investments will take place. The purpose of the present study is to analyze if and when investors choose to invest in new electricity production capacity depending on their existing portfolio of power producing units. Electricity price scenarios generated with a partial equilibrium model (Balmorel) are combined with a model of investment decisions. In this, various scenarios concerning the development in the Nordic power market, such as new transmission lines between neighbouring countries, more installed wind power, and changes in CO 2 emission trading costs, are used to investigate the consequences for investments in a natural gas fired, combined cycle power plant. The main result of the analysis is that new investments are highly sensitive to investors existing power production portfolio, as new production units affect the merit order in the power market, i.e. compete with the existing power plants. (au)

Combined Heat and Power in an open market

International Nuclear Information System (INIS)

Hawkins, A.

1999-01-01

The chances and risks for combined heat and power (CHP) installations presented by the future liberalisation of the electricity market in Switzerland are discussed. A summary of papers and speeches presented at a conference in Basle is presented. New developments in the electricity marketplace are looked at from the point of view of CHP unit manufacturers, the Federal Administration, energy policy makers and marketing experts. Examples are quoted concerning the situation in Germany and possible changes in power generation philosophy

Development of a Cost Effective Power Generation System: An Overview

Directory of Open Access Journals (Sweden)

Shiv Prakash Bihari

2016-03-01

Full Text Available This paper presents an overview on development of cost effective power generation system and motivates for development of a model for hybrid system with wind to investigate the combined operation of wind with different sources to cater to wind’s stochastic nature for imbalance minimization and optimal operation. Development of model for trading power in competitive electricity market and development of strategies for trading in electricity markets (wind energy and reserves markets to investigate the effects of real time pricing tariffs on electricity market operation has been illustrated in this paper. Dynamic modelling related studies to investigate the wind generator’s kinetic energy for primary frequency support using simulink and simulation studies on doubly fed induction generator to study its capability during small disturbances / fluctuations on power system have been described.

The emergence of distributed generation in a liberalizing european electricity market

International Nuclear Information System (INIS)

Habay, P.; Pariente David, S.

1999-01-01

The liberalization, of the European electricity market accelerates the market entry of innovative small scale power generation and communication technologies applicable for a competitive power supply offering. The pressure of competition will push incumbent utilities as well as new entrants to tap any source of economic efficiencies in order to secure a competitive advantage and sufficient margins. The integration of a power generation unit on site or close to end-user premises without additional constraint for end-user is a potential source of economic efficiency. These systems enable to meet the needs of end-users at an attractive price and, beyond this, to free capacities for power exchange through the grid. These new practices lay the basis for distributed generation business which should experience significant growth in Europe over the next decade assuming that technologies meet efficiencies as announced. (authors)

A new self-scheduling strategy for integrated operation of wind and pumped-storage power plants in power markets

International Nuclear Information System (INIS)

Varkani, Ali Karimi; Daraeepour, Ali; Monsef, Hassan

2011-01-01

Highlights: → A strategy for integrated operation of wind and pumped-storage plants is proposed. → Participation of both plants in energy and ancillary service markets is modeled. → The uncertainty of wind production is modeled by a novel probabilistic function. → The proposed strategy is tested on a real case in the Spanish electricity market. -- Abstract: Competitive structure of power markets causes various challenges for wind resources to participate in these markets. Indeed, production uncertainty is the main cause of their low income. Thus, they are usually supported by system operators, which is in contrast with the competitive paradigm of power markets. In this paper, a new strategy for increasing the profits of wind resources is proposed. In the suggested strategy, a Generation Company (GenCo), who owns both wind and pumped-storage plants, self-schedules the integrated operation of them regarding the uncertainty of wind power generation. For presenting an integrated self-schedule and obtaining a real added value of the strategy, participation of the GenCo in energy and ancillary service markets is modeled. The self-scheduling strategy is based on stochastic programming techniques. Outputs of the problem include generation offers in day-ahead energy market and ancillary service markets, including spinning and regulation reserve markets. A Neural Network (NN) based technique is used for modeling the uncertainty of wind power production. The proposed strategy is tested on a real wind farm in mainland, Spain. Moreover, added value of the strategy is presented in different conditions of the market.

Impacts of Western Area Power Administration's power marketing alternatives on electric utility systems

International Nuclear Information System (INIS)

Veselka, T.D.; Portante, E.C.; Koritarov, V.

1995-03-01

This technical memorandum estimates the effects of alternative contractual commitments that may be initiated by the Western Area Power Administration's Salt Lake City Area Office. It also studies hydropower operational restrictions at the Salt Lake City Area Integrated Projects in combination with these alternatives. Power marketing and hydropower operational effects are estimated in support of Western's Electric Power Marketing Environmental Impact Statement (EIS). Electricity production and capacity expansion for utility systems that will be directly affected by alternatives specified in the EIS are simulated. Cost estimates are presented by utility type and for various activities such as capacity expansion, generation, long-term firm purchases and sales, fixed operation and maintenance expenses, and spot market activities. Operational changes at hydropower facilities are also investigated

Asian market plants for thermo-electric energy generation

International Nuclear Information System (INIS)

Antognazza, E.; Cozzi, G.

1998-01-01

This article synthesizes the analysis results carried out by IEFE (Bocconi University of Milan) on the evolution (1980-1997) and the present situation of industrial equipment orders for power generation in East and South Asia markets. At present these markets are the most important, on world scale, of the analyzed sector. Competitive positions changes have been analyzed, in every market and the whole Asian area, of the most important firms operating on international scale, as well as of the major local makers [it

Gas-fired electric power generating technologies

International Nuclear Information System (INIS)

1994-09-01

The workshop that was held in Madrid 25-27 May 1994 included participation by experts from 16 countries. They represented such diverse fields and disciplines as technology, governmental regulation, economics, and environment. Thus, the participants provided an excellent cross section of key areas and a diversity of viewpoints. At the workshop, a broad range of topics regarding gas-fired electric power generation was discussed. These included political, regulatory and financial issues as well as more specific technical questions regarding the environment, energy efficiency, advanced generation technologies and the status of competitive developments. Important technological advances in gas-based power and CHP technologies have already been achieved including higher energy efficiency and lower emissions, with further improvements expected in the near future. Advanced technology trends include: (a) The use of gas technology to reduce emissions from existing coal-fired power plants. (b) The wide-spread application of combined-cycle gas turbines in new power plants and the growing use of aero-derivative gas turbines in CHP applications. (c) Phosphoric acid fuel cells that are being introduced commercially. Their market penetration will grow over the next 10 years. The next generation of fuel cells (solid oxide and molten carbonate) is expected to enter the market around the year 2000. (EG)

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.

Evolution of Wholesale Electricity Market Design with Increasing Levels of Renewable Generation

Energy Technology Data Exchange (ETDEWEB)

Ela, E.; Milligan, M.; Bloom, A.; Botterud, A.; Townsend, A.; Levin, T.

2014-09-01

Variable generation such as wind and photovoltaic solar power has increased substantially in recent years. Variable generation has unique characteristics compared to the traditional technologies that supply energy in the wholesale electricity markets. These characteristics create unique challenges in planning and operating the power system, and they can also influence the performance and outcomes from electricity markets. This report focuses on two particular issues related to market design: revenue sufficiency for long-term reliability and incentivizing flexibility in short-term operations. The report provides an overview of current design and some designs that have been proposed by industry or researchers.

Market Prices in a Power Market with more than 50% Wind Power

DEFF Research Database (Denmark)

Skytte, Klaus; Grohnheit, Poul Erik

2018-01-01

Denmark has the highest proportion of wind power in the world. Wind power provided a world record of 39.1% of the total annual Danish electricity consumption in 2014 with as much as 51.7% in Western Denmark. Many would argue that the present power markets are not designed for such high shares...... of wind power production and that it would be hard to get good and stable prices. However, analyses in this chapter show that the Nordic power market works, extreme events have been few, and the current infrastructure and market organization has been able to handle the amount of wind power installed so...... far. It is found that geographical bidding areas for the wholesale electricity market reflect external transmission constraints caused by wind power. The analyses in this chapter use hourly data from West Denmark—which has the highest share of wind energy in Denmark and which is a separate price area...

Market Prices in a Power Market with more than 50% Wind Power

DEFF Research Database (Denmark)

Skytte, Klaus; Grohnheit, Poul Erik

2017-01-01

Denmark has the highest proportion of wind power in the world. Wind power provided a world record of 39.1% of the total annual Danish electricity consumption in 2014 with as much as 51.7% in Western Denmark. Many would argue that the present power markets are not designed for such high shares...... of wind power production and that it would be hard to get good and stable prices. However, analyses in this chapter show that the Nordic power market works, extreme events have been few, and the current infrastructure and market organization has been able to handle the amount of wind power installed so...... far. It is found that geographical bidding areas for the wholesale electricity market reflect external transmission constraints caused by wind power. The analyses in this chapter use hourly data from West Denmark—which has the highest share of wind energy in Denmark and which is a separate price area...

Power Markets. Creating a regional power market

International Nuclear Information System (INIS)

Beckman, K.; Belin, H.

2009-01-01

One article and one column in the section 'Power markets'. In the article attention is paid to the leading role of the Netherlands in the pursuit of a fully integrated North West European electricity market. the column 'View from Brussels' focuses on the 'Sustainable Energy Europe' campaign and the related EU Sustainable Energy Week in February 2009

Green Power Marketing - from Niches to Mass Markets

International Nuclear Information System (INIS)

Wuestenhagen, Rolf

2000-01-01

In the process of liberalization of the electricity market the customers are now in a position to participate in the decision on how their electricity is produced. In particular, many consumers have a preference for renewable energies. For the producers, marketing of 'eco-power' is an opportunity to achieve sustainable competitive advantage. However, the market share of these products is still quite small today, and 'eco-power' is usually marketed as an expensive niche product. From the perspective of sustainable development these niches are a necessary but not sufficient step. In this book, ways are discussed which could lead to a mass-market penetration of eco-power products. A theoretical analysis is combined with empirical evidence derived from the eco-power market in Germany, Switzerland, Great Britain and the U.S. as well as with a comparison with other market segments [de

Investments in electricity generation in Croatian liberalized market: energy option

International Nuclear Information System (INIS)

Androcec, I.; Viskovic, A.; Slipac, G.

2004-01-01

The Republic of Croatia should have enough capacities built on its own territory to cover system's peak load at any time for ensuring a long-term reliability of its operation. According to annual increasing of electricity consumption and progressive shutdown of the oldest generating plants, the security of future electricity supply depends on new investments. The market, i.e. a competitive generation, is the driving force in the construction of new power plants. The main stimulus for the construction is the possibility of definite return of invested capital and enabling potential investors to realize the expected revenues (profit). The construction of generating capacities is subject of authorisation procedure or tendering procedure, by approval of the Energy Regulatory Council. The electricity market opening in Croatia is parallel process with establishment of regional energy market in South East Europe where the decision of investment in new power plant will be defined by regional investment priorities, all in the aspect of European Union enlargement. In those liberalisation conditions it is necessary to realize all possible energy options according to the Strategy of Energy Development of Republic of Croatia and to the regional energy market requirements or European Union Directives. New power plant will be realized, because of objective circumstances, through construction of gas power plant or coal power plant and possible nuclear power plant, and in much smaller size through construction of hydro power plants or power plants on renewable energy sources. The possibility of any energy option will be considered in view of: investment cost, operation and maintenance cost, fuel price, external costs, public influence, and through investor's risk. This paper is aiming to analyse the possibility of nuclear power plant construction in Croatia as well as in other small and medium electricity grids. Nuclear option will be comprehensively considered in technical

Impact of Market Regulations on the Development of Wind Power - An International Comparison

International Nuclear Information System (INIS)

Ackermann, Thomas; Soeder, Lennart

2000-01-01

This paper presents and briefly evaluates the most important existing market regulations and market schemes regarding its influence on the development of wind power. The evaluation of the existing market regulations focuses on the incentives provided by the various instruments to reduce production costs. The instruments and schemes are: Feed-in Tariffs, Net Metering, Bidding Process, Fixed Quotas, Green Certificate Trading, Green Power Exchange, Green Pricing. In addition, the impact of market regulations for international electricity markets with a power exchange are investigated. The analysis showed that new wind power generation can faces significant market barriers. (author)

Leveraging fuel purchasing and management activities within a competitive power market

International Nuclear Information System (INIS)

Stallard, S.; Anderson, A.; Schick, J.

1998-01-01

Worldwide, one can see that competition, deregulation, or at a minimum, a closer focus on the overall economies of power generation is stimulating change within the power sector. Power generation markets are becoming liberalized providing for independent power producers and, in some cases, providing third-party access to the grid. In the US, fuel costs are being transformed from a pass-through expense to the consumer to one of a strategic asset or liability. In every case, fuel quality, fuel-related costs, and managing the fuel purchasing process are key factors in the overall efficiency and financial performance on the power generator. This paper illustrates how effective fuel management requires that the utility or GenCo improve upon historical fuel management/purchasing practices to lower overall generation costs and address the opportunities present in the power and fuel markets. Key framework/principles to be discussed include: Tighter coupling of fuel purchasing, short-term planning, and dispatch functions. Effective planning to link purchased fuel to system demand forecasts, consider contract/transportation constraints/economics, evaluate alternative sources, and consider fuel mix strategies (e.g., between sport, contract, and various regions/qualities). Tools and processes needed to support the new business environment such as fuel impact analysis, application of integrated fuel evaluation/management systems, market forecasting, purchasing, and the role of fuel management in energy trading. Flexibility to support optimal purchasing strategies including shorter purchase cycles, special buys, buys for third parties, and coal tolling. This framework would be discussed using examples from the US, UK, European, and Pacific Rim markets

Assessing the Impact of Wind/PV Power Generation and Market Policies on Decentralized Hybrid Systems

DEFF Research Database (Denmark)

S.M. Arnoux, Luciana; Santiago, Leonardo

In this paper, we offer a comprehensive approach to assess the impact of wind and photovoltaic power generation on decentralized hybrid systems. In particular, we focus on three performance measures of the energy system, namely reliability, costs, and efficiency. Most of the current studies focus...... level. Therefore, we appropriately assess the inherent uncertainty and design options. First, we use linear and quantile regression models to estimate the wind speed and solar insolation. Then, we use different quantiles as an input for the hybrid system design to assess market policies (e.g., net...

Green power: marketing departments on the starting blocks -- more and more consumers want to buy green power

International Nuclear Information System (INIS)

Hawkins, A.C.

2001-01-01

This article reviews the increasing efforts being made by Swiss electricity utilities to provide their customers with electricity generated from renewable resources. The article discusses various green power labelling schemes that aim to provide quality assurance and guarantee that customers can buy power produced from renewable resources. Price developments for wind and solar power and market development prospects for green power in general are discussed. The use of green power's positive image in the utilities' marketing strategies is examined

Bidding strategy in pay-as-bid power markets

International Nuclear Information System (INIS)

Oloomi-Buygi, M.; Nazarian, H.

2007-01-01

Electricity markets around the world can be classified as pool-based electricity markets; pure bilateral contract markets; and hybrid markets. The bidding strategy has emerged as an important issue for producers in pool-based electricity markets. Power producers can use several approaches to develop bidding strategies that determine the optimal bid to maximize profit. The various approaches fall into 2 categories, notably forecasting market clearing prices, and estimating the behaviour of other competitors. This paper presented a simple and efficient approach for developing a bidding strategy in pay-as-bid electricity markets. It used the multiple step bid to estimate the optimal bid. One step was allocated to revenue earning while the other steps were allocated to information acquiring. Information acquiring steps obtain information from the market for estimating the optimal bid of the next day. The proposed method was used at a specified power generating unit operating in the Iranian electricity market. The study showed that the proposed bidding strategy can increase the total revenue of the unit by thirty nine per cent. 22 refs., 8 figs

Natural gas for power generation : issues and implications : an energy market assessment

International Nuclear Information System (INIS)

2006-06-01

This report presented a historical examination of trends in natural gas-fired generation as well as a perspective on the issues and potential implications of increasing reliance on natural gas. Potential changes to Canadian energy consumers were reviewed in addition to natural gas infrastructure and services. Electricity prices relating to natural gas generation were examined. A broad regional and continental perspective was employed to account for energy market integration and the fact that gas trends reflect developments outside of Canada. The report was divided into 2 sections: (1) an examination of the trend toward natural-gas fired generation of electricity in North America; and (2) an examination of issues in closer detail from a regional perspective followed by a discussion of the changes in generation and natural gas markets in western, eastern, and central North America. Questions arising from the analysis of specific regional supply, demand and infrastructure situations were also examined. Recommendations were presented for issues concerning the current gas market and the appropriate role of the government in ensuring adequate generation. Uncertainties in future natural gas supply were also considered. It was concluded that rapid industrial growth will continue to increase demand for natural gas and electricity supply. 5 figs

Strategic thinking about nuclear energy: implications of the emerging market structure in electric generation

International Nuclear Information System (INIS)

Bodde, D.L.

1998-01-01

Global environmental concerns provide strong motivation for electric generating technologies that reduce greenhouse gas emissions. By itself however, this incentive is probably not sufficient to reverse the long-term decline in the market share of nuclear energy. This is because the power plants now offered by the nuclear vendors mesh poorly with the needs of competitive generating markets. Where managers of generating companies are held accountable to share owners in a competitive environment, the nuclear power plants now offered in the market for new generating capacity are at a distinct disadvantage. As much of the world moves toward the competitive model, this disadvantage will become increasingly limiting. An alternative nuclear power plant concept and fuel cycle is needed, a radical departure from current practice, designed with the competitive marketplace in mind. To accomplish this, a new kind of institution is required: multinational in scope, oriented toward the market, and able to master the politics of the fuel cycle. (author)

Market power behaviour in the danish food marketing chain

DEFF Research Database (Denmark)

Jensen, Jørgen Dejgård

2009-01-01

The paper presents and demonstrates an econometric approach to analysing food industry firms' market pricing behaviour within the framework of translog cost functions and based on firm-level accounts panel data. The study identifies effects that can be interpreted as firms' market power behaviour...... in output or input markets. The most robust indications of market power behaviour in output markets are found in the pork and poultry processing sectors, as well as for firms in the bakeries sector. On the other hand, the most robust market power behaviour indications regarding input markets are found...... for poultry processing. In general, the patterns with regard to market power behaviour seem to be more clearly identified in the processing sectors than in the distribution sectors....

Environmental Assessment for power marketing policy for Southwestern Power Administration

Energy Technology Data Exchange (ETDEWEB)

1993-12-01

Southwestern Power Administration (Southwestern) needs to renew expiring power sales contracts with new term (10 year) sales contracts. The existing contracts have been in place for several years and many will expire over the next ten years. Southwestern completed an Environmental Assessment on the existing power allocation in June, 1979 (a copy of the EA is attached), and there are no proposed additions of any major new generation resources, service to discrete major new loads, or major changes in operating parameters, beyond those included in the existing power allocation. Impacts from a no action plan, proposed alternative, and market power for less than 10 years are described.

Environmental Assessment for power marketing policy for Southwestern Power Administration

International Nuclear Information System (INIS)

1993-01-01

Southwestern Power Administration (Southwestern) needs to renew expiring power sales contracts with new term (10 year) sales contracts. The existing contracts have been in place for several years and many will expire over the next ten years. Southwestern completed an Environmental Assessment on the existing power allocation in June, 1979 (a copy of the EA is attached), and there are no proposed additions of any major new generation resources, service to discrete major new loads, or major changes in operating parameters, beyond those included in the existing power allocation. Impacts from a no action plan, proposed alternative, and market power for less than 10 years are described

Midwest gas and power markets, hubs, pipelines, and interconnects

International Nuclear Information System (INIS)

Wirick, J.

2001-01-01

The existing interstate pipelines and proposed pipeline projects for the Chicago hub area were illustrated. The presentation explained why energy suppliers in the current competitive market need to balance and manage energy and transportation services for gas-fired power generators in terms of hourly winter and summer peaking services. The new infrastructure of the energy market will include new pipelines, storage and balancing to meet the ever increasing power demand. One of the options to meet power demand is to increase natural gas supply, transportation, storage, and hourly balancing capabilities. Other options are to build nuclear or coal-fired power generating facilities, or to go with renewables such as solar and wind power. Energy conservation and the reduction of natural gas usage per capita is another option to eliminate blackouts. This presentation also addressed the role that local distribution companies (LDC) and unbundling will play in the choice of these options. tabs., figs

Current Trends in the Nuclear Power Global Market

Directory of Open Access Journals (Sweden)

Mariya Mikhailovna Osetskaya

2018-03-01

Full Text Available The review of the nuclear energy technologies market, namely the main processes of the initial and final stages of the nuclear fuel cycle (NTC was shown. The authors reveal key players in the markets of natural uranium mining, conversion, enrichment, fabrication of nuclear fuel, direct disposal, and reprocessing as well as determine their market shares. The article shows the fundamental factors influencing the development trends of the global nuclear power market such as: units’ commissioning in China, India, the Republic of Korea and other countries, the restart of the Japanese nuclear power plants, growth of uranium supplies long-term contracting planned for the period up to 2025, volatility of world prices of the NFC initial and final stages, political, economic and environmental reasons for the nuclear power generation choice. The article presents the results of analyses of Russian and world prices on the NFC initial and final stages main processes’ allowing to draw a conclusion about the current competitiveness of Russian nuclear energy technologies

Stochastic Optimal Wind Power Bidding Strategy in Short-Term Electricity Market

DEFF Research Database (Denmark)

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

2012-01-01

Due to the fluctuating nature and non-perfect forecast of the wind power, the wind power owners are penalized for the imbalance costs of the regulation, when they trade wind power in the short-term liberalized electricity market. Therefore, in this paper a formulation of an imbalance cost...... minimization problem for trading wind power in the short-term electricity market is described, to help the wind power owners optimize their bidding strategy. Stochastic optimization and a Monte Carlo method are adopted to find the optimal bidding strategy for trading wind power in the short-term electricity...... market in order to deal with the uncertainty of the regulation price, the activated regulation of the power system and the forecasted wind power generation. The Danish short-term electricity market and a wind farm in western Denmark are chosen as study cases due to the high wind power penetration here...

Architectural innovation foresight of thermoelectric generator charger integrated portable power supply for portable consumer electronic device in metropolitan market: The case study of Thailand

Science.gov (United States)

Maolikul, S.; Kiatgamolchai, S.; Chavarnakul, T.

2012-06-01

In the context of information and communication technology (ICT) trend for worldwide individuals, social life becomes digital and portable consumer electronic devices (PCED) powered by conventional power supply from batteries have been evolving through miniaturization and various function integration. Thermoelectric generators (TEG) were hypothesized for its potential role of battery charger to serve the shining PCED market. Hence, this paper, mainly focusing at the metropolitan market in Thailand, aimed to conduct architectural innovation foresight and to develop scenarios on potential exploitation approach of PCED battery power supply with TEG charger converting power from ambient heat source adjacent to individual's daily life. After technical review and assessment for TEG potential and battery aspect, the business research was conducted to analyze PCED consumer behavior for their PCED utilization pattern, power supply lack problems, and encountering heat sources/sinks in 3 modes: daily life, work, and leisure hobbies. Based on the secondary data analysis from literature and National Statistical Office of Thailand, quantitative analysis was applied using the cluster probability sampling methodology, statistically, with the sample size of 400 at 0.05 level of significance. In addition, the qualitative analysis was conducted to emphasize the rationale of consumer's behavior using in-depth qualitative interview. Scenario planning technique was also used to generate technological and market trend foresight. Innovation field and potential scenario for matching technology with market was proposed in this paper. The ingredient for successful commercialization of battery power supply with TEG charger for PCED market consists of 5 factors as follows: (1) PCED characteristic, (2) potential ambient heat sources/sinks, (3) battery module, (4) power management module, and the final jigsaw (5) characteristic and adequate arrangement of TEG modules. The foresight outcome for

Nuclear power generation and fuel cycle report 1996

Energy Technology Data Exchange (ETDEWEB)

NONE

1996-10-01

This report presents the current status and projections through 2015 of nuclear capacity, generation, and fuel cycle requirements for all countries using nuclear power to generate electricity for commercial use. It also contains information and forecasts of developments in the worldwide nuclear fuel market. Long term projections of U.S. nuclear capacity, generation, and spent fuel discharges for two different scenarios through 2040 are developed. A discussion on decommissioning of nuclear power plants is included.

Nuclear power generation and fuel cycle report 1996

International Nuclear Information System (INIS)

1996-10-01

This report presents the current status and projections through 2015 of nuclear capacity, generation, and fuel cycle requirements for all countries using nuclear power to generate electricity for commercial use. It also contains information and forecasts of developments in the worldwide nuclear fuel market. Long term projections of U.S. nuclear capacity, generation, and spent fuel discharges for two different scenarios through 2040 are developed. A discussion on decommissioning of nuclear power plants is included

Development of Power Market in India—Opportunities and Challenges

DEFF Research Database (Denmark)

Painuly, Jyoti P.; Banerjee, Rahul

2015-01-01

Electricity market in India has come a long way since its nascent origin in circa 1999. Electricity trading began through inter-regional bulk power transfer from the surplus region in eastern India to deficit regions in western India in 1999. This has led to the emergence of electricity traders......, who have helped in optimizing generation asset across the country, and acted as counter-parties to trades and helped absorb the credit risk of distribution companies (DISCOMS), which were in poor financial health. Subsequently, as trade volume picked up, power exchanges with standard contracts were...... introduced in July 2008. Power exchanges are electronic platforms where anonymous price discovery happens based on supply and demand for power in the short term. The short-term electricity trade has reached 7.58 billion units (9.84 % of total generation) in March 2012 with a market size of approximately US...

Transitional rates, risk and the Ontario wholesale power market

International Nuclear Information System (INIS)

Rothman, M.

2001-01-01

Navigant Consulting is a large investor-owned management consulting firm specializing in energy-based and other networked and regulated industries across Canada. The company works with clients to create delivery and protect shareholder value in the face of uncertainty and change. This presentation discussed the issue of price volatility in competitive electricity markets. The points to keep in mind for pricing in competitive power markets is that: (1) electricity should be generated simultaneously with use, (2) rates in administered markets are average over some time period, (3) competitive pool markets do not average costs, (4) in competitive pool markets, prices are set in very short (hourly or less) intervals, (5) prices in competitive markets are more volatile than in administered markets for both economic and market structure reasons, and (6) the degree of volatility and price levels can change quickly. The Ontario power market was also discussed with reference to price volatility in Ontario and what this means for electricity customers. tabs., figs

About the Need of Combining Power Market and Power Grid Model Results for Future Energy System Scenarios

Science.gov (United States)

Mende, Denis; Böttger, Diana; Löwer, Lothar; Becker, Holger; Akbulut, Alev; Stock, Sebastian

2018-02-01

The European power grid infrastructure faces various challenges due to the expansion of renewable energy sources (RES). To conduct investigations on interactions between power generation and the power grid, models for the power market as well as for the power grid are necessary. This paper describes the basic functionalities and working principles of both types of models as well as steps to couple power market results and the power grid model. The combination of these models is beneficial in terms of gaining realistic power flow scenarios in the grid model and of being able to pass back results of the power flow and restrictions to the market model. Focus is laid on the power grid model and possible application examples like algorithms in grid analysis, operation and dynamic equipment modelling.

Perspectives for hydropower in Switzerland - chances offered by the 'green power' market

International Nuclear Information System (INIS)

Spreng, D.; Truffer, B.; Wuestenhagen, R.

2003-01-01

This short article discusses the chances offered to operators of hydropower stations by 'green power' markets for the sale of power produced under strict conditions in environment-friendly power generation facilities. The development of these markets is discussed as are the interdependencies between the public's use of green power markets and measures taken by the state to promote the use of renewable forms of energy. The results of market research on customer willingness to purchase environment-friendly electricity are discussed and the important role of hydropower in this business is stressed. The differing interests of various customer segments are discussed and the part played by 'green stocks' and other sustainable investments in the financial market is looked at

GIS-based biomass resource utilization for rice straw cofiring in the Taiwanese power market

International Nuclear Information System (INIS)

Hu, Ming-Che; Huang, An-Lei; Wen, Tzai-Hung

2013-01-01

Rice straw, a rich agricultural byproduct in Taiwan, can be used as biomass feedstock for cofiring systems. In this study, we analyzed the penetration of rice straw cofiring systems in the Taiwanese power market. In the power generation system, rice straw is cofired with fossil fuel in existing electricity plants. The benefits of cofiring systems include increasing the use of renewable energy, decreasing the fuel cost, and lowering greenhouse gas emissions. We established a linear complementarity model to simulate the power market equilibrium with cofiring systems in Taiwan. GIS-based analysis was then used to analyze the geospatial relationships between paddy rice farms and power plants to assess potential biomass for straw-power generation. Additionally, a sensitivity analysis of the biomass feedstock supply system was conducted for various cofiring scenarios. The spatial maps and equilibrium results of rice straw cofiring in Taiwanese power market are presented in the paper. - Highlights: ► The penetration of straw cofiring systems in the power market is analyzed. ► GIS-based analysis assesses potential straw-power generation. ► The spatial maps and equilibrium results of rice straw cofiring are presented

Green power programs in Canada : 2003 : overview of Government green power policies, utility green power implementation initiatives, green power and certificate marketing programs, and their benefits

International Nuclear Information System (INIS)

Whitmore, J.; Bramley, M.; Holmes, R.

2004-09-01

Green power is defined as electricity produced from renewable sources, and whose production has low adverse impacts on the environment, human health and communities. Green power has near-zero greenhouse gas (GHG) emissions and includes sources such as wind, hydro, and solar power. It offers several environmental benefits, as well as the enhancement of energy security, regional development, economic diversification and the creation of skilled jobs. There are four categories of programs related to green power development in Canada: government green power policies, utility green power development programs, green power marketing initiatives, and green power certificate marketing initiatives. Most of the activities in Canada associated with these four categories in 2003 were discussed in this report. However, difficulties with quantification prevented the inclusion of some green power activities such as (1) the generation of green power not certified or identified by the generator as green power, (2) industry or residential self-generation, (3) net metering, and (4) small government programs. Green power generation facilities in 2003 totaled 775 MW of capacity compared to 539 MW in 2002. Hydro capacity represented 41 per cent, followed by wind capacity at 40 per cent and wood waste at 17 per cent. Most of the green power generation facilities in 2003 were located in Alberta, followed by British Columbia, Ontario and Quebec. 230 refs., 8 tabs., 1 fig

Scheduling of Power System Cells Integrating Stochastic Power Generation

International Nuclear Information System (INIS)

Costa, L.M.

2008-12-01

Energy supply and climate change are nowadays two of the most outstanding problems which societies have to cope with under a context of increasing energy needs. Public awareness of these problems is driving political willingness to take actions for tackling them in a swift and efficient manner. Such actions mainly focus in increasing energy efficiency, in decreasing dependence on fossil fuels, and in reducing greenhouse gas emissions. In this context, power systems are undergoing important changes in the way they are planned and managed. On the one hand, vertically integrated structures are being replaced by market structures in which power systems are un-bundled. On the other, power systems that once relied on large power generation facilities are witnessing the end of these facilities' life-cycle and, consequently, their decommissioning. The role of distributed energy resources such as wind and solar power generators is becoming increasingly important in this context. However, the large-scale integration of such type of generation presents many challenges due, for instance, to the uncertainty associated to the variability of their production. Nevertheless, advanced forecasting tools may be combined with more controllable elements such as energy storage devices, gas turbines, and controllable loads to form systems that aim to reduce the impacts that may be caused by these uncertainties. This thesis addresses the management under market conditions of these types of systems that act like independent societies and which are herewith named power system cells. From the available literature, a unified view of power system scheduling problems is also proposed as a first step for managing sets of power system cells in a multi-cell management framework. Then, methodologies for performing the optimal day-ahead scheduling of single power system cells are proposed, discussed and evaluated under both a deterministic and a stochastic framework that directly integrates the

Real-time Pricing in Power Markets

DEFF Research Database (Denmark)

Boom, Anette; Schwenen, Sebastian

We examine welfare e ects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with nal consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction...... to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power...

Real-time Pricing in Power Markets

DEFF Research Database (Denmark)

Boom, Anette; Schwenen, Sebastian

We examine welfare eects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with nal consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction...... to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power...

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

International Nuclear Information System (INIS)

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

2006-01-01

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

Market based generation: A promising market management option

International Nuclear Information System (INIS)

Siddiqi, R.

1992-01-01

It is proposed to ease the tension between demand management and supply side management at electric utilities through the introduction of a concept called market management. Market management provides a framework for developing and evaluating the attractiveness of new products and services such as dispersed generation hardware, implementation services, and complementary pricing structures. A market management strategy is the definition of market segments, creating products for those segments, evaluation of the profitability of the product-segment combinations, commitment of resources to those segments, and development of product and marketing plans for those segments. A brief analysis of backup generation is presented as an example of market management. In this example, the customer that is backed up shares some portion of the capital and maintenance costs of the backup unit through priority service rates; the utility and customers that are not backed up can obtain the use of the generating resource but pay only a portion of its costs. Backup generation programs have been found to provide utilities with the ability to meet peak load requirements more cheaply than by investing in peaking capacity. Other benefits for utilities include protection of market share, more efficient rates, and a new source of revenues. With the advances in the technology of small-scale generation, utilities can examine bundling various pricing options with market based generation to offer alternative value-added service options to customer segments with demand characteristics that make these technologies attractive. 3 figs

From a fuel supplier to an active participant: Shell's view of the opportunities offered by a changing power market

International Nuclear Information System (INIS)

Nyhan, J.

1998-01-01

In the last 10 years, the power generation market has seen radical changes. The coming years will see yet more change. Although the pace of change may be uneven across Europe, it is clear that the old reference points for the power generation market are no longer valid. Along with other market players, Shell has re-evaluated the role it wishes to play in the power generation market. Although it has long operated large generation capacity on its own sites, Shell's role has been that of a fuel supplier to monopoly power generation and distribution organizations, which were largely state controlled . Privatization and liberalization have been followed by changing market structures tending to push risk towards the producer. This evolution presents challenges for the normal IPP structure, where market risk is transferred and offers an opportunity for the active participation of the fuel supplier in meeting these challenges. In 1996, Shell decided to embrace the changes in power generation market. Already, significant steps have been taken in markets in Asia, Latin America and in Europe. The differing requirements of each of these markets means there are no standard solutions and requires Shell to devise flexible frameworks which meet the customer's needs. Shell is bringing its significant strengths to the power generation market and looks forward to participating on a world wide scale in the industry at this exciting phase in its development

Waste Heat to Power Market Assessment

Energy Technology Data Exchange (ETDEWEB)

Elson, Amelia [ICF International, Fairfax, VA (United States); Tidball, Rick [ICF International, Fairfax, VA (United States); Hampson, Anne [ICF International, Fairfax, VA (United States)

2015-03-01

Waste heat to power (WHP) is the process of capturing heat discarded by an existing process and using that heat to generate electricity. In the industrial sector, waste heat streams are generated by kilns, furnaces, ovens, turbines, engines, and other equipment. In addition to processes at industrial plants, waste heat streams suitable for WHP are generated at field locations, including landfills, compressor stations, and mining sites. Waste heat streams are also produced in the residential and commercial sectors, but compared to industrial sites these waste heat streams typically have lower temperatures and much lower volumetric flow rates. The economic feasibility for WHP declines as the temperature and flow rate decline, and most WHP technologies are therefore applied in industrial markets where waste heat stream characteristics are more favorable. This report provides an assessment of the potential market for WHP in the industrial sector in the United States.

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

International Nuclear Information System (INIS)

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

2008-01-01

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

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

Energy Technology Data Exchange (ETDEWEB)

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

2008-04-15

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

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

Energy Technology Data Exchange (ETDEWEB)

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

2008-04-15

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

Power system economics : the Nordic electricity market. 2nd ed.

International Nuclear Information System (INIS)

Wangensteen, Ivar

2012-01-01

This book written as a textbook for students of engineering is designed for the Norwegian Power Markets course which is part of the Energy and Environment Master's Program and the recently established international MSc program in Electric Power Engineering. As the title indicates, the book deals with both power system economics in general and the practical implementation and experience from the Nordic market. Areas of coverage include: -- Restructuring/deregulation of the power supply system -- Grid access including tariffs and congestion management -- Generation planning -- Market modeling -- Ancillary services -- Regulation of grid monopolies. Although Power Systems Economics is written primarily as a textbook for students, other readers will also find the book interesting. It deals with problems that have been subject of considerable attention in the power sector for some years and it addresses issues that are still relevant and important. (au)

Power system economics : the Nordic electricity market. 2nd ed.

Energy Technology Data Exchange (ETDEWEB)

Wangensteen, Ivar

2012-07-01

This book written as a textbook for students of engineering is designed for the Norwegian Power Markets course which is part of the Energy and Environment Master's Program and the recently established international MSc program in Electric Power Engineering. As the title indicates, the book deals with both power system economics in general and the practical implementation and experience from the Nordic market. Areas of coverage include: -- Restructuring/deregulation of the power supply system -- Grid access including tariffs and congestion management -- Generation planning -- Market modeling -- Ancillary services -- Regulation of grid monopolies. Although Power Systems Economics is written primarily as a textbook for students, other readers will also find the book interesting. It deals with problems that have been subject of considerable attention in the power sector for some years and it addresses issues that are still relevant and important. (au)

Power systems locational marginal pricing in deregulated markets

Science.gov (United States)

Wang, Hui-Fung Francis

Since the beginning of the 1990s, the electricity business is transforming from a vertical integrating business to a competitive market operations. The generation, transmission, distribution subsystem of an electricity utility are operated independently as Genco (generation subsystem), Transco (transmission subsystem), and Distco (distribution subsystem). This trend promotes more economical inter- and intra regional transactions to be made by the participating companies and the users of electricity to achieve the intended objectives of deregulation. There are various types of electricity markets that are implemented in the North America in the past few years. However, transmission congestion management becomes a key issue in the electricity market design as more bilateral transactions are traded across long distances competing for scarce transmission resources. It directly alters the traditional concept of energy pricing and impacts the bottom line, revenue and cost of electricity, of both suppliers and buyers. In this research, transmission congestion problem in a deregulated market environment is elucidated by implementing by the Locational Marginal Pricing (LMP) method. With a comprehensive understanding of the LMP method, new mathematical tools will aid electric utilities in exploring new business opportunities are developed and presented in this dissertation. The dissertation focuses on the development of concept of (LMP) forecasting and its implication to the market participants in deregulated market. Specifically, we explore methods of developing fast LMP calculation techniques that are differ from existing LMPs. We also explore and document the usefulness of the proposed LMP in determining electricity pricing of a large scale power system. The developed mathematical tools use of well-known optimization techniques such as linear programming that are support by several flow charts. The fast and practical security constrained unit commitment methods are the

Carbon auctions, energy markets and market power: An experimental analysis

International Nuclear Information System (INIS)

Dormady, Noah C.

2014-01-01

This paper provides an experimental analysis of a simultaneous energy-emissions market under conditions of market power. The experimental design employs real-world institutional features; including stochastic demand, permit banking, inter-temporal (multi-round) dynamics, a tightening cap, and resale. The results suggest that dominant firms can utilize energy-emissions market linkages to simultaneously inflate the price of energy and suppress the price of emissions allowances. Whereas under prior market designs, regulators were concerned with dominant firms exercising their market power over the emissions market to exclude rivals and manipulate the permit market by hoarding permits; the results of this paper suggest that this strategy is less profitable to dominant firms in contemporary auction-based markets than strategic capacity withholding in the energy market and associated demand reduction in the emissions market. - Highlights: • Laboratory simulation of joint energy-emissions market. • Evaluates market power under collusion and real-world institutional features. • Dominant firms can exercise market power to inflate energy prices. • Dominant firms can exercise market power to suppress emissions prices. • Supply withholding is an implicit demand reduction in the emissions market

Solar photovoltaic power generation system and understanding of green energy

International Nuclear Information System (INIS)

Yoo, Chun Sik

2004-03-01

This book introduces sunlight generation system and green energy, which includes new and renewable energy such as photovoltaic power generation, solar thermal, wind power, bio energy, waste energy, geothermal energy, ocean energy and fuel cell photovoltaic industry like summary, technology trend, market trend, development strategy of the industry in Korea, and other countries, design of photovoltaic power generation system supporting policy and related business of new and renewable energy.

HTS technology - Generating the future of offshore wind power

Energy Technology Data Exchange (ETDEWEB)

Mueller, Jens

2010-09-15

Superconductive generator design is going to become a real competitive alternative in the future. In general, superconductor design is the most competitive out of Direct Drive Systems and best fulfils the needs of the upcoming market - especially in the offshore market, where WECs with higher nominal power up to 10MW are required. Low weight, high reliability and the very good grid behaviour are the main advantages of the superconductor generator design and will lead to lower costs. The other systems are restricted to a smaller energy output range and / or onshore wind power production business.

Market to facilitate wind and solar energy integration in the bulk power supply

Energy Technology Data Exchange (ETDEWEB)

Milligan, Michael [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Soeder, Lennart [Royal Inst. of Tech., Stockholm (Sweden); Holttinen, Hannele [VTT Energy, Espoo (Finland); Clark, Charlton [U.S. Department of Energy Washington, DC (United States); Pineda, Ivan [European Wind Energy Association, Brussels (Belgium); Collaboration: IEA Task 25 collaboration

2012-07-01

Wind and solar power will give rise to challenges in electricity markets regarding flexibility, capacity adequacy, and the participation of wind and solar generators to markets. Large amounts of wind power will have impacts on bulk power system markets and electricity prices. If the markets respond to increased wind power by increasing investments in low-capital-cost/high-marginal-cost power, the average price may remain in the same range. However, the experiences so far from Denmark, Germany, Spain, and Ireland are that the average market prices decreased because of wind power. This reduction in price may result in additional revenue insufficiency, which may be corrected with a capacity market; however, capacity markets are difficult to design. Further, the flexibility attributes of the capacity need to be considered. Markets facilitating wind and solar integration will include possibilities for trading close to delivery (either by shorter gate closure times or intraday markets). Time steps chosen for markets can enable more flexibility to be assessed. Experience from 5- and 10-minute markets has been encouraging. (orig.)

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....

Power generation needs and opportunities in Eastern Europe

International Nuclear Information System (INIS)

Gadomski, C.R.; Hon, M.

1990-01-01

This article examines the market for power generation and pollution control equipment in Eastern Europe. The topics of the article include financing equipment and services, financial and political incentives, capacity, environmental impacts, energy consumption and efficiency, energy prices, energy diversification, renewable energy opportunities, strategy for the market, and the example of Poland

Methods for Estimation of Market Power in Electric Power Industry

Science.gov (United States)

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

2012-01-01

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

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

Energy Technology Data Exchange (ETDEWEB)

Sonn, Yang-Hoon; Park, Jong-Bae

2010-09-15

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

Power market competition

International Nuclear Information System (INIS)

Kelly, J.

1998-01-01

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

Power generation from fuelwood by the Nicaraguan sugar mills

NARCIS (Netherlands)

Carneiro de Miranda, R.; Broek, R. van den

1997-01-01

With new concept development for the sugar industry and with new power market opportunities, two sugar mills in Nicaragua initiated projects aimed at becoming power plants during the sugar cane off-season. Basically the idea is to use more efficient boilers and turbines, and generate power beyond

Market based solutions for power pricing

International Nuclear Information System (INIS)

Wangensteen, Ivar

2002-06-01

The report examines how the price for effect reserves, spot market power and regulated power is formed provided ideal market conditions rule. Primarily the price determining factors in a market for power reserves are examined and how the connection between this market and the energy market (the spot market) is. In a free market there would be a balance between what the actors may obtain by operating in the open market for power reserves/regulated power on the one hand and the market for spot power on the other. Primarily we suppose that the desired amount of power reserve is known. Secondly the problem constellation is extended to comprise the size of the effect reserves i.e. the optimising of the requirement to the power reserves. The optimal amount of power reserves is obtained when there is a balance between the cost and the benefit. This optimal balance is achieved when expected macro economical loss due to outfacing balances against the cost of maintaining larger reserves. By using a simple model it is demonstrated that a system operator regulates the maximal price in the regulated market and this equals the rationing price. The actors will offer sufficient reserves even if the reserve price is zero (provided risk neutrality). If the maximal price for regulated power is lower the price of effect reserves will rise. Based on the same simple model calculations are made for how short and long term market balance will be for increasing demands

Design of a real time market for regulating power. FlexPower WP1 - Report 3

Energy Technology Data Exchange (ETDEWEB)

Bang, C.; Fock, F.; Togeby, M.

2011-12-15

The FlexPower project investigates the possibility of using broadcasted dynamic electricity prices as a simple and low cost means to activating a large number of flexible small-scale power units. The aim is to provide regulating power via an aggregated response from the numerous units on a volunteer basis. The power units could for example be electrical heating and cooling units, electrical vehicles, industrial demand and micro generation. Each power unit can have its own local controller and individual business model and objective function. The optimisation of the local controls may require forecasts of the services requested by the customer (such as heat for a house or charging power for an electrical vehicle) - in terms of quantity, timing and flexibility - and forecasts of the electricity prices. Based on international 'real-time' power market experiences, new dynamic FlexPower market mechanisms to perform regulating power are designed and tested via simulations, under laboratory conditions and in the field. A dedicated simulation tool is developed for this purpose. The FlexPower regulation can never be perfect, but is expected to be able to meet some of the present and future growing demand for regulating power. As a starting point, a 5-minute power price signal, based on the actual regulation power prices, is tested. WP1 addresses the following question: 1) How could a system with a one-way price be designed? How can the FlexPower mechanism be integrated into the present electricity market, including the market for regulating power? This report describes the FlexPower concept, and gives one suggestion as to how this new market could work. How this will affect the different stakeholders is discussed, and risks and opportunities in the new market are presented. (LN)

The hydroelectric power market in the United States

International Nuclear Information System (INIS)

2002-01-01

The second-largest producer of hydroelectric power in the world is the United States, right after Canada. In the United States, 7.1 per cent of net electricity generation was attributed to hydroelectric power in 2000, which totalled 269 terawatt hours (TWh). Aging facilities, outdated technology in some facilities, a cumbersome licensing process, and increasing environmental demands from interest groups for the preservation of river systems and surrounding wildlife challenge the industry. Pacific Coast states, especially California, were faced with electric power shortages during the summer of 2001, due to low market prices, high power usage among consumers and drought. The problems with the deregulation of the electricity market were brought to light by these shortages. Legislation to restructure the electric power industry in 25 states had not been enacted as of January 2002. The purchase of more power from both Canada and the Mexico is being considered by the government of the United States, as is the creation of a national power grid to allow for power transmission throughout the country. The Canada-United States energy trade might be affected by such a move, and result in project construction opportunities for Canadian companies. Renewable energy sources must be responsible for the generation of 10 per cent of power generation levels by 2020, on a gradual basis as mandated by law. By 2005, New York City must purchase 10 per cent of its power from renewable energy sources, reaching 20 per cent by 2010. The repair and replacement of aging dam equipment, the development of advanced turbine technology to protect fish stocks and water quality, dam removal, the construction of power lines are all opportunities open to Canadian companies. 60 refs., 5 tabs

Mechanisms for efficient investments and optimal zones in regional power market

Directory of Open Access Journals (Sweden)

Andročec Ivan

2014-01-01

Full Text Available The paper is result of research different cross-border electricity trading mechanisms impact. Focus is on investments in generation and transmission power system facilities in regional market. Assumptions include efficient market coupling mechanism (with more bidding zones, use of additional investment indicators (like social welfare and congestion cost and security of supply issues (capacity mechanisms. There is discussion on cost benefits analysis for particular market participants and there is possibility of risk reduction for regional power system expansion. It is shown current state-of-the-art, problems and trends in solving some aspects of market integration and investment issues. In some cases smaller and well defined bidding areas are absolutely essential in order to ensure system security and economic efficiency. There is no single criterion for power system expansion but it is possible to use combination of incentive schemes and possible through one index for cross-border trade. Risk management for cross-border electricity trading through several areas needs to be upgraded with use of financial transmission rights like weighted average area prices, respectively. Regional power system security is closely associated with timely investments in energy supply in line with economic development and environmental needs. Security of supply indicator is deriving an estimation of security of supply improvement from the market based simulation results when a generation or transmission investment project is implemented. All researched makes market integration and investments in Europe more efficient and gives more correct signals to market participants in regional market.

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)

Choice between hierarchy and market: Case of Central Electricity Generating Board's reorganization

International Nuclear Information System (INIS)

Caroli, M.

1992-01-01

Through the use of the 'Organization and Market' theoretical approach, this article outlines CEGB's reorganization to evaluate this experience under the strategic planning and operating effectiveness perspectives. The first part synthesizes the basic points of the 1990 reform which divided CEGB into three different companies and separated the control of the generation of electric power from its transport. The second part summarizes the main considerations about conditions of efficiency of vertical integration and disintegration, according to the 'Organization and Market' approach. By utilizing the conclusions highlighted in the first two parts of this article, the third one studies the effects of CEGB's vertical disintegration on the level of competition in power generation market; on CEGB's strategic effectiveness and operative efficiency; and on transactional costs in the electric power industry. CEGB's reorganization does not seem to have had a relevantly positive effect on competition, while it has caused a strategic burden and a significant increase of transactional costs in the exchange of electricity between the generator and the transmitter

An Analysis of Colombian Power Market Price Behavior from an Industrial Organization Perspective

Directory of Open Access Journals (Sweden)

Ona Duarte Venslauskas

2015-12-01

Full Text Available We analyze the behavior of spot prices in the Colombian wholesale power market, using a series of models derived from industrial organization theory.  We first create a Cournot-based model that simulates the strategic behavior of the market-leader power generators, which we use to estimate two industrial organization variables, the Index of Residual Demand and the Herfindahl-Hirschman Index (HHI.  We use these variables to create VAR models that estimate spot prices and power market impulse-response relationships.  The results from these models show that hydroelectric generators can use their water storage capability strategically to affect off-peak prices primarily, while the thermal generators can manage their capacity strategically to affect on-peak prices.  In addition, shocks to the Index of Residual Capacity and to the HHI cause spot price fluctuations, which can be interpreted as the generators´ strategic response to these shocks.

From the ecological niche to the mass market with 'Green Power Marketing' - 1st European Conference on Green Power Marketing 2001

International Nuclear Information System (INIS)

2001-01-01

This report summarises the information presented at the European Conference on Green Power Marketing held in 2001 in St. Moritz, Switzerland. It takes a look at the market chances of ecologically produced electricity for use in Switzerland and for export. The opinions of experts from the areas of research, business, politics, marketing and non-governmental organisations that were presented at the meeting are summarised. European perspectives and trends in the USA are discussed and examples of green power marketing in the USA and Holland are given. Marketing issues and price policies are discussed, as are labelling strategies and customer perception of 'Green Power' issues. Also, sales issues including e-marketing, power-market rules and certificate trading are dealt with

Power import or domestic power generation using gas?

International Nuclear Information System (INIS)

Saettler, M.; Bohnenschaefer, W.; Schlesinger, M.

2001-01-01

This report for the Swiss Federal Office of Energy (SFOE) presents expert opinion on the question of how Switzerland could meet its demands for power in the future. The results of the analysis of two options - the import of electrical power or its generation using natural-gas-fired power stations - made in the light of gas market liberalisation are presented. These include the assessment of the use of 'GuD' (combined gas and steam-turbine) power stations in the 100 MW e l to 400 MW e l class regarding their cost, their emissions and primary energy consumption. The authors discuss the assessments from the political and economic points of view. An appendix supplies characteristic data for 'GuD' power stations and an example of a model calculation for a 400 MW e l 'GuD' power station

Investments and price formation in a liberalized electric power market

International Nuclear Information System (INIS)

Morthorst, P.E.

2005-05-01

How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. Using the Balmorel model, a basic scenario until the year 2020 is made which contains the present decisions about capacity extension only. Up to 2010 this basic scenario can be seen as a probable development. For the period 2010 to 2020, however, the calculations can primarily be seen as illustrations of how the prices may develop, provided that no further investments are made. Thus, for the period 2010 - 2020 it is a 'worst case' that has been analysed. In the basic scenario several cases for the year 2015 are analysed, among others the consequences of wet and dry years and an unusually cold winter. The project also analyses how the price development impacts the profitability of new investments in power capacity, depending on several exogenous events, like use of more wind power and the price on the carbon dioxide market. The analyses present three cases: 1) A single investor not owing other power plants, 2) a single investor owing a number of power plants in which case a new plant will compete with him self, 3) two competing investors investing in the same known power plants. In all cases investments are made in a natural gas combined cycle plant producing both electric power and heat. Furthermore, the investor's own possibility to time his investment has been

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.

The TC-PSI indicator for forecasting the potential for market power in wholesale electricity markets

International Nuclear Information System (INIS)

Hesamzadeh, Mohammad R.; Biggar, Darryl R.; Hosseinzadeh, Nasser

2011-01-01

Wholesale electricity market regulators have long sought a simple, reliable, transparent indicator of the likely impact of wholesale market developments on the exercise of market power. Conventional indicators, such as the Pivotal Supplier Indicator (PSI) and the Residual Supply Index (RSI) cannot be extended to apply to meshed transmission networks, especially when generating companies hold a portfolio of generating units at different locations on the network. This paper proposes a generalisation of these standard measures termed the 'Transmission-Constrained Pivotal Supplier Indicator (TC-PSI)'. The TC-PSI of a generating company is defined as the maximum must-run generation for any subset of generating plant while allowing for strategic operation of other plant in the portfolio. We illustrate the use of the TC-PSI using a five-node model of the Australian NEM. - Highlights: → An indicator for assessing the pivotality of generating portfolios is proposed. → Transmission constraints are modelled explicitly in the proposed indicator. → Strategic behaviours of a generating portfolio in using its units are modelled. → This approach was illustrated using a 5-node model of the Australian NEM.

Developing power markets - Development of market place for meeting the demand - Case India, in transition from regulated to competitive structure

Energy Technology Data Exchange (ETDEWEB)

Kumar, Pranay; Sarkar, Prabhajit Kumar

2010-09-15

Power Market players of developing countries with supply deficit are exposed to a unique combination of price risk and quantity risk which is not the case with developed nations that have taken path of liberalization to open up their power markets. India has one of the largest generation capacities in the world, yet till recently the Indian Power sector was highly regulated. However, the last decade has witnessed many initiatives so as to make the sector market oriented. This paper provides opportunity for developing countries to learn from Indian experience of introducing competition in the power sector.

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

Energy Technology Data Exchange (ETDEWEB)

Mirza, Faisal Mehmood

2011-07-01

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

Pattern of secure bilateral transactions ensuring power economic dispatch in hybrid electricity markets

International Nuclear Information System (INIS)

Kumar, Ashwani; Gao, Wenzhong

2009-01-01

This paper proposes a new method for secure bilateral transactions determination ensuring economic power dispatch of the generators using new AC distribution factors for pool and bilateral coordinated markets. The new optimization problem considers simultaneous minimization of deviations from scheduled transactions and fuel cost of the generators in the network. The fuel cost has been obtained for hybrid market model and impact of different percentage of bilateral demand on fuel cost, generation share, and pattern of transactions has also been determined. The impact of optimally located unified power flow controller (UPFC) on the bilateral transactions, fuel cost and generation pattern has also been studied. The results have also been obtained for pool market model. The proposed technique has been applied on IEEE 24-bus reliability test system (RTS). (author)

The Next-Generation U.S. Retail Electricity Market with Customers and Prosumers—A Bibliographical Survey

Directory of Open Access Journals (Sweden)

Tao Chen

2017-12-01

Full Text Available Due to the rapidly-changing technologies in the power industry, many new references addressing the frameworks and business models of the next-generation retail electricity market are entering the research community. In particular, considering new customers with considerable demand response awareness and so-called prosumers with localized power generation based on distributed energy resources (DERs, the next-generation retail electricity market infrastructure will be a level playing field for local energy transactions, strategic pricing scheme design, new business model design and building an innovative energy ecosystem. Consequently, there is an urgent need to keep track of international experiences and activities taking place in the field of the market mechanism design problem at the distribution level. This paper provides a comprehensive survey of recent technology developments and aims to inspire awareness of the further deregulation of the electricity market, especially in areas close to customers. We mainly bring attention to the more than 90 articles published during the past five years. The collected literature has been divided into different sections to discuss different aspects of the next-generation retail electricity market under the deregulated power industry.

Power engineering of Kazakhstan. Movement to the market

International Nuclear Information System (INIS)

Dukenbaev, K.D.

1998-01-01

In the book an optimal solution of problems on transition of current system of Kazakhstan power engineering management to free market relationships is made an attempt. In the work achievements of world power engineering system in introducing of International standards of generation and distribution of electric energy were taken into consideration. The book is intended to all levels managers of power engineering branch and it could be used in business circles having interest to capital investment to Kazakhstan power engineering as well as to students and postgraduates

Mapping of selected markets with Nodal pricing or similar systems. Australia, New Zealand and North American power markets

Energy Technology Data Exchange (ETDEWEB)

Mathiesen, Vivi (ed.)

2011-07-01

This report shows that the principals of nodal pricing can be implemented in different ways. A common denominator for markets with nodal pricing is a central market based nodal dispatch, where prices and flows are determined simultaneously close to real time. This stands apart from the European market design, which is based on a highly simplified version of the grid, and a physical point auction day ahead. Congestion management is handled by the TSO during the operational hour and not through the market as is the case in nodal pricing systems. Nodal pricing yields optimal dispatch and congestion management through the market, and as such an optimal utilisation of energy generation and network. However, whether this short term optimisation delivers the highest overall efficiency for the market in terms of competition in the wholesale and retail market, price discovery, possibilities for hedging, long term price signals etc. is difficult to determine. The markets investigated handle issues such as market power, risk management, investment signals and retail markets in very different ways. New Zealand and PJM are examples of markets with full nodal pricing, i.e. both generators and the demand side are exposed to nodal prices. The PJM market has more 'additional features' than the New Zealand market. Examples of these are separate capacity market to trigger investments in generation and generator price caps to deal with situations of market power. In addition PJM offers liquid and mature markets for risk management, such as aggregates of nodes where market participant can chose to be settled (rather than to be settled directly at the node). A general finding though, seems to be that risk management at peripheral nodes is challenging in nodal markets, particularly for independent retailers. In New Zealand generators and retailers were permitted to 'reintegrate' in order to cope with the nodal prices. The Australian market has central market based

Mass Market Demand Response and Variable Generation Integration Issues: A Scoping Study

Energy Technology Data Exchange (ETDEWEB)

Cappers, Peter; Mills, Andrew; Goldman, Charles; Wiser, Ryan; Eto, Joseph H.

2011-09-10

This scoping study focuses on the policy issues inherent in the claims made by some Smart Grid proponents that the demand response potential of mass market customers which is enabled by widespread implementation of Advanced Metering Infrastructure (AMI) through the Smart Grid could be the “silver bullet” for mitigating variable generation integration issues. In terms of approach, we will: identify key issues associated with integrating large amounts of variable generation into the bulk power system; identify demand response opportunities made more readily available to mass market customers through widespread deployment of AMI systems and how they can affect the bulk power system; assess the extent to which these mass market Demand Response (DR) opportunities can mitigate Variable Generation (VG) integration issues in the near-term and what electricity market structures and regulatory practices could be changed to further expand the ability for DR to mitigate VG integration issues over the long term; and provide a qualitative comparison of DR and other approaches to mitigate VG integration issues.

The potential impact of externalities considerations on the market for biomass power technologies

International Nuclear Information System (INIS)

Swezey, B.G.; Porter, K.L.; Feher, J.S.

1995-01-01

Of all the renewable energy sources used for power generation, biomass energy has experienced the greatest growth over the last decade. Spurred by requirements established in the Public Utility Regulatory Policies Act of 1978 (PURPA), as well as various tax incentives, biomass-based power generation now provides more than 50 billion kWh of electric energy from 10,000 MW of installed capacity. The overwhelming majority of this capacity, primarily wood-based, has been developed by the nonutility sector. However, the biomass industry is currently facing more difficult market conditions due to a reduction in federal incentives and changes in the generation market, such as lower utility avoided costs, slower demand growth, and greater competition among both generators and fuel sources. States are increasingly contemplating the inclusion of market externalities costs and benefits associated with different generation options in electricity resource planning and procurement decisions. Market externalities, as they relate to generation resources and technologies, represent impacts that are not wholly reflected in the market price of electricity derived from these sources. These impacts, which can be either positive or negative, can encompass environmental, economic and other social factors, but state considerations have focused predominantly on environmental externalities costs, especially air emissions. The explicit quantification of externalities could measurably affect the competitive standing of various energy resources and technologies in future generation resource acquisitions. This paper summarizes work undertaken to assess the status the externalities considerations in state and utility electricity resource planning processes and to determine how externalities considerations might help or hinder future development of biomass power plants. (author)

Green power programs in Canada : 2002 : Overview of Government green power policies, utility green power development programs, green power and certificate marketing initiatives, and their benefits

International Nuclear Information System (INIS)

Bramley, M.; Boustie, S.; Vadgama, J.; Wieler, C.; Pape-Salmon, A.; Holmes, R.

2003-11-01

Green power is generally defined as electricity produced from renewable sources, and whose production has low adverse impacts on the environment, human health and communities. Green power has near-zero greenhouse gas (GHG) emissions and includes sources such as wind, hydro, and solar power. Green power offers several environmental benefits, as well as the enhancement of energy security, regional development, economic diversification and the creation of skilled jobs. There are four categories of programs related to green power development in Canada: government green power policies, utility green power development programs, green power marketing initiatives, and green power certificate marketing initiatives. Most of the activities associated with these four categories in 2002 were discussed in this report. However, difficulties with quantification prevented the inclusion of some green power activities in the report, such as (1) the generation of green power not certified or identified by the generator as green power, (2) industry or residential self-generation, (3) net metering, and (4) small government programs. Each category was presented in detail. The information included in the report was based on surveys sent to each program proponent. Follow-up communications and other publicly available information was also included. New programs operating in 2003 or currently under development were listed. refs., 8 tabs

Utility-Marketer Partnerships. An Effective Strategy for Marketing Green Power?

Energy Technology Data Exchange (ETDEWEB)

Bird, L. A. [National Renewable Energy Lab. (NREL), Golden, CO (United States); Brown, E. S. [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2006-04-01

This paper explores whether partnerships between utilities and independent marketers are an effective strategy for marketing green power. We present case studies of voluntary and mandatory partnerships covering green power program design and implementation in both regulated and restructured electricity markets. We also include perspectives (based on interviews) from utilities, marketers, and regulators involved in developing and implementing these partnerships. From these case studies and interviews, we describe lessons learned about developing effective partnerships, including such issues as respective roles in marketing and administration, product branding, and contract and incentive structures. Based on experience to date, strategic partnerships between utilities and marketers can be an effective approach to marketing green power. Partnerships leverage the sales and resource procurement experience of marketers and the utility’s reputation and access to customers. Further, partnerships can create greater incentives for success because marketers have a vested financial interest in maximizing customer participation and green power sales.

Utility-Marketing Partnerships: An Effective Strategy for Marketing Green Power?

Energy Technology Data Exchange (ETDEWEB)

Bird, L. A.; Brown, E. S.

2006-04-01

This paper explores whether partnerships between utilities and independent marketers are an effective strategy for marketing green power. We present case studies of voluntary and mandatory partnerships covering green power program design and implementation in both regulated and restructured electricity markets. We also include perspectives (based on interviews) from utilities, marketers, and regulators involved in developing and implementing these partnerships. From these case studies and interviews, we describe lessons learned about developing effective partnerships, including such issues as respective roles in marketing and administration, product branding, and contract and incentive structures. Based on experience to date, strategic partnerships between utilities and marketers can be an effective approach to marketing green power. Partnerships leverage the sales and resource procurement experience of marketers and the utility?s reputation and access to customers. Further, partnerships can create greater incentives for success because marketers have a vested financial interest in maximizing customer participation and green power sales.

Spot markets vs. long-term contracts - modelling tools for regional electricity generating utilities

International Nuclear Information System (INIS)

Grohnheit, P.E.

1999-01-01

A properly organised market for electricity requires that some information will be available for all market participants. Also a range of generally available modelling tools are necessary. This paper describes a set of simple models based on published data for analyses of the long-term revenues of regional utilities with combined heat and power generation (CHP), who will operate a competitive international electricity market and a local heat market. The future revenues from trade on the spot market is analysed using a load curve model, in which marginal costs are calculated on the basis of short-term costs of the available units and chronological hourly variations in the demands for electricity and heat. Assumptions on prices, marginal costs and electricity generation by the different types of generating units are studied for selected types of local electricity generators. The long-term revenue requirements to be met by long-term contracts are analysed using a traditional techno-economic optimisation model focusing on technology choice and competition among technologies over 20.30 years. A possible conclusion from this discussion is that it is important for the economic and environmental efficiency of the electricity market that local or regional generators of CHP, who are able to react on price signals, do not conclude long-term contracts that include fixed time-of-day tariff for sale of electricity. Optimisation results for a CHP region (represented by the structure of the Danish electricity and CHP market in 1995) also indicates that a market for CO 2 tradable permits is unlikely to attract major non-fossil fuel technologies for electricity generation, e.g. wind power. (au)

Market potential of IGCC for domestic power production

International Nuclear Information System (INIS)

Gray, D.; Tomlinson, G.; Hawk, E.; Maskew, J.

1999-01-01

Mitretek Systems and CONSOL Inc. have completed the first phase of a market potential study for Integrated Coal Gasification Combined Cycle (IGCC) domestic power production. The U. S. Department of Energy (DOE) funded this study. The objective of this study is to provide DOE with data to estimate the future domestic market potential of IGCC for electricity generation. Major drivers in this study are the state of technology development, feedstock costs, environmental control costs, demand growth, and dispatchability. This study examines IGCC potential for baseload power production in the Northeast U. S., an important market area by virtue of existing coal infrastructure and proximity to coal producing regions. IGCC market potential was examined for two levels of technology development as a function of natural gas price and carbon tax. This paper discusses the results of this study, including the levels of performance and cost necessary to insure competitiveness with natural gas combined cycle plants

Power market model with energy- and power dimension

International Nuclear Information System (INIS)

Johnsen, T.A.; Larsen, B.M.

1995-01-01

This report discusses a mathematical model of the Norwegian power market. The year is divided into three seasons. Each season is subdivided into a high-load period and a low-load period according to the demand. High-load occurs in daytime on workdays while low-load occurs at night and on holidays. The model is intended to be a tool for studying variations in prices, production, demand and trade throughout the year in a market of free competition. The model establishes equilibrium prices of electricity in Norway in high-load and low-load periods. Equilibrium prices with added transport tariffs and charges give customer an indication of the cost of using electricity. And the equilibrium prices indicate to the power producers the value of further energy or power capacity. Examples of calculations using the model show that extended export and import between Norway and other countries affect power prices and production in Norway. In the examples, power intensive industry and wood processing are subjected to market prices on energy. World market prices which give unilateral power export in the high-load periods cause the Norwegian power prices to rise strongly. If to the export from Norway in periods of high-load there corresponds import in periods of low-load, then the pressure on the prices in the power market is significantly reduced. A more extensive power exchange implies that foreign power producers may use the Norwegian power system to avoid large variations in their thermal power production. 23 refs., 21 figs., 1 tab

The trends of the market of electric power production in the world

International Nuclear Information System (INIS)

Allal, S.

1999-01-01

The technologies of natural gas and renewable energies develop the most quickly among the different energy sources. The French and european companies win new parts of market: combined cycle in Asia and Mediterranean, small-scale hydroelectric power plants in China, decentralized rural electrification by photovoltaic systems in Africa. But the conquest of foreign market goes through the development of a solid interior market. This confirms the interest of a diversification of the national power generation park. (N.C.)

Optimal offering and allocation policies for wind power in energy and reserve markets

DEFF Research Database (Denmark)

Soares, Tiago; Jensen, Tue Vissing; Mazzi, Nicolo

2017-01-01

Cormick relaxation and piecewise linear decision rules are adapted and tested aiming to maximize the expected revenue for participating in both energy and reserve markets, while accounting for estimated balancing costs for failing to provide energy and reserve. A set of numerical examples, as well as a case study......Proliferation of wind power generation is increasingly making this power source an important asset in designs of energy and reserve markets. Intuitively, wind power producers will require the development of new offering strategies that maximize the expected profit in both energy and reserve markets...... of better forecast information from the different day-ahead and balancing stages, allowing different shares of energy and reserve in both stages. Under these assumptions, different mathematical methods able to deal with the uncertain nature of wind power generation, namely, stochastic programming, with Mc...

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

Energy Technology Data Exchange (ETDEWEB)

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

2010-07-01

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

Electrical power systems for distributed generation

Energy Technology Data Exchange (ETDEWEB)

Robertson, T.A.; Huval, S.J. [Stewart & Stevenson Services, Inc., Houston, TX (United States)

1996-12-31

{open_quotes}Distributed Generation{close_quotes} has become the {open_quotes}buzz{close_quotes} word of an electric utility industry facing deregulation. Many industrial facilities utilize equipment in distributed installations to serve the needs of a thermal host through the capture of exhaust energy in a heat recovery steam generator. The electrical power generated is then sold as a {open_quotes}side benefit{close_quotes} to the cost-effective supply of high quality thermal energy. Distributed generation is desirable for many different reasons, each with unique characteristics of the product. Many years of experience in the distributed generation market has helped Stewart & Stevenson to define a range of product features that are crucial to most any application. The following paper will highlight a few of these applications. The paper will also examine the range of products currently available and in development. Finally, we will survey the additional services offered by Stewart & Stevenson to meet the needs of a rapidly changing power generation industry.

Product marketing for eco-power; Produktemarketing fuer Oekostrom

Energy Technology Data Exchange (ETDEWEB)

Huber, D. [Verband Schweizerischer Elektrizitaetswerke, Zuerich (Switzerland)

1998-10-30

The company NaturEnergie (natural energy), a subsidiary of the Energieversorger Kraftwerk Laufenburg AG (KWL) is located in Grenzach-Whylen (Germany) near Basel (Switzerland) has been selling power generated from sun and water since the 1st of October 1998. The company employes a cleverly designed, emotional marketing strategy in order to position the brand ``NaturEnergie`` as a label for ``green power`` on the market. Bulletin VSE talked to Dr. Kai-Hendrik Schlusche (40), co-founder and member of the board of NaturEnergie AG about marketing and pricing of ``green`` power and about relations with Switzerland.(orig.) [Deutsch] Im grenznahen Grenzach-Whylen bei Basel verkauft die Firma NaturEnergie, eine Tochtergesellschaft der Energieversorger Kraftwerk Laufenburg AG (KWL) und Kraftuebertragungswerke Rheinfelden AG (KWR), seit 1. Oktober 1998 Oekostrom aus Sonne und Wasser. Mit Hilfe einer ausgekluegelten emotionellen Marketingstrategie will das junge Unternehmen die Marke `NaturEnergie` als Label fuer `gruenen Strom` im Markt positionieren. Bulletin VSE sprach mit Dr. Kai-Hendrik Schlusche (40), seit Mai 1998 Gruendungsvorstand der NaturEnergie AG, ueber Marketing, Preisgestaltung von `gruenem Strom` und die Beziehungen zur Schweiz. (orig.)

Quantifying the Sensitivity of the Production of Environmental Externalities to Market-Based Interventions in the Power Sector

Science.gov (United States)

Peer, R.; Sanders, K.

2017-12-01

The optimization function that governs the dispatching of power generators to meet electricity demand minimizes the marginal cost of electricity generation without regard to the environmental or public health damages caused by power production. Although technologies exist for reducing the externalities resulting from electricity generation at power plants, current solutions typically raise the cost of power production or introduce operational challenges for the grid. This research quantifies the trade-offs and couplings between the cooling water, greenhouse gas emissions, and air quality impacts of different power generating technologies under business as usual market conditions, as well as a series of market-based interventions aimed to reduce the production of those externalities. Using publicly available data from the US Environmental Protection Agency (EPA) and the US Energy Information Administration (EIA) for power plant water use and emissions, a unit commitment and dispatch power market simulation model is modified to evaluate the production of environmental externalities from power production. Scenarios are developed to apply a set of fees for cooling water, carbon dioxide, nitrous oxide and sulfur oxide emissions, respectively. Trade-offs between environmental performance, overall generation costs, and shifts in the power plants dispatched to meet demand are quantified for each power market simulation. The results from this study will provide insight into the development of a novel market-based framework that modifies the optimization algorithms governing the dispatching of electricity onto the grid in efforts to achieve cost-effective improvements in its environmental performance without the need for new infrastructure investments.

Optimal dispatch in dynamic security constrained open power market

International Nuclear Information System (INIS)

Singh, S.N.; David, A.K.

2002-01-01

Power system security is a new concern in the competitive power market operation, because the integration of the system controller and the generation owner has been broken. This paper presents an approach for dynamic security constrained optimal dispatch in restructured power market environment. The transient energy margin using transient energy function (TEF) approach has been used to calculate the stability margin of the system and a hybrid method is applied to calculate the approximate unstable equilibrium point (UEP) that is used to calculate the exact UEP and thus, the energy margin using TEF. The case study results illustrated on two systems shows that the operating mechanisms are compatible with the new business environment. (author)

Study on Stochastic Optimal Electric Power Procurement Strategies with Uncertain Market Prices

Science.gov (United States)

Sakchai, Siripatanakulkhajorn; Saisho, Yuichi; Fujii, Yasumasa; Yamaji, Kenji

The player in deregulated electricity markets can be categorized into three groups of GENCO (Generator Companies), TRNASCO (Transmission Companies), DISCO (Distribution Companies). This research focuses on the role of Distribution Companies, which purchase electricity from market at randomly fluctuating prices, and provide it to their customers at given fixed prices. Therefore Distribution companies have to take the risk stemming from price fluctuation of electricity instead of the customers. This entails the necessity to develop a certain method to make an optimal strategy for electricity procurement. In such a circumstance, this research has the purpose for proposing the mathematical method based on stochastic dynamic programming to evaluate the value of a long-term bilateral contract of electricity trade, and also a project of combination of the bilateral contract and power generation with their own generators for procuring electric power in deregulated market.

Pricing of power in the new market: the impact on industrial/commercial customers

Energy Technology Data Exchange (ETDEWEB)

Johannson, K. [TransCanada Power, Calgary, AB (Canada)

2001-07-01

A series of viewgraphs were part of this presentation where the author discussed the operations of TransCanada Power. The company operates a power plant that generate 1500 MW, and has 1000 MW in the advanced development stage. TransCanada Power is also a wholesale marketer that actively participates in regulatory and market design forums. It handles 20 per cent of large industrial loads. A brief overview of power price risk was provided, where the concept of value at risk (VAR), a measurement technique, was explained. An example further illustrated the concept. The author reviewed power markets in Alberta from an historical perspective, noting the differences between regulated wholesale markets and the markets found today. A discussion of the drivers of regulated markets ensued, followed by the drivers of the deregulated market, where generation assets are privately owned, operating outside of the adjudication of the regulator, and the merit order is established by ranking of offers, not costs. Return is made from energy commodity sales, the market price is affected by outside influences, and the average market price does not reflect the average system costs. The author explained the changes that took place and discussed some pricing issues. A section on pricing options reviewed pricing decision objectives, term, short term purchases, long term fixed price energy, gas tolling agreements. The author concluded that each organization must define its tolerance to risk, its comfort level with treating electricity differently than gas. The fundamentals behind pricing must be understood, as well as the competitive position of company. tabs., figs.

Pricing of power in the new market: the impact on industrial/commercial customers

International Nuclear Information System (INIS)

Johannson, K.

2001-01-01

A series of viewgraphs were part of this presentation where the author discussed the operations of TransCanada Power. The company operates a power plant that generate 1500 MW, and has 1000 MW in the advanced development stage. TransCanada Power is also a wholesale marketer that actively participates in regulatory and market design forums. It handles 20 per cent of large industrial loads. A brief overview of power price risk was provided, where the concept of value at risk (VAR), a measurement technique, was explained. An example further illustrated the concept. The author reviewed power markets in Alberta from an historical perspective, noting the differences between regulated wholesale markets and the markets found today. A discussion of the drivers of regulated markets ensued, followed by the drivers of the deregulated market, where generation assets are privately owned, operating outside of the adjudication of the regulator, and the merit order is established by ranking of offers, not costs. Return is made from energy commodity sales, the market price is affected by outside influences, and the average market price does not reflect the average system costs. The author explained the changes that took place and discussed some pricing issues. A section on pricing options reviewed pricing decision objectives, term, short term purchases, long term fixed price energy, gas tolling agreements. The author concluded that each organization must define its tolerance to risk, its comfort level with treating electricity differently than gas. The fundamentals behind pricing must be understood, as well as the competitive position of company. tabs., figs

What will become of the european nuclear power plant market

International Nuclear Information System (INIS)

Goulden, O.A.

1976-01-01

In a forecast of the development of the future market for power plants and components in Europe a British consultant comes to the conclusion that the nuclear power programs established in various countries in 1974 are oversized in the light of the reduction in the increment of electricity consumption, which is expected to continue, if they are implemented in addition to existing and planned conventional thermal power stations, and that these programs are too costly if they are intended more or less only to substitute for other sources of energy. A streamlining process, which is deemed to be inescapable, is bound to result in a major cutback of the nuclear power station market in Europe and in a hard fight for survival among the power plant manufacturers now in the market. In the author's opinion, the only way out would be a uniform European electricity generation, transmission and distribution system with all the rationalization effects this would entail. (orig.) [de

Coordination and decision making of regulation, operation, and market activities in power systems

Science.gov (United States)

Nakashima, Tomoaki

Electric power has been traditionally supplied to customers at regulated rates by vertically integrated utilities (VIUs), which own generation, transmission, and distribution systems. However, the regulatory authorities of VIUs are promoting competition in their businesses to lower the price of electric energy. Consequently, in new deregulated circumstances, many suppliers and marketers compete in the generation market, and conflict of interest may often occur over transmission. Therefore, a neutral entity, called an independent system operator (ISO), which operates the power system independently, has been established to give market participants nondiscriminatory access to transmission sectors with a natural monopoly, and to facilitate competition in generation sectors. Several types of ISOs are established at present, with their respective regions and authorities. The ISO receives many requests from market participants to transfer power, and must evaluate the feasibility of their requests under the system's condition. In the near future, regulatory authorities may impose various objectives on the ISOs. Then, based on the regulators' policies, the ISO must determine the optimal schedules from feasible solutions, or change the market participants' requests. In a newly developed power market, market participants will conduct their transactions in order to maximize their profit. The most crucial information in conducting power transactions is price and demand. A direct transaction between suppliers and consumers may become attractive because of its stability of price, while in a power exchange market, gaming and speculation of participants may push up electricity prices considerably. To assist the consumers in making effective decisions, suitable methods for forecasting volatile market price are necessary. This research has been approached from three viewpoints: Firstly, from the system operator's point of view, desirable system operation and power market structure

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%

A stochastic MILP energy planning model incorporating power market dynamics

International Nuclear Information System (INIS)

Koltsaklis, Nikolaos E.; Nazos, Konstantinos

2017-01-01

Highlights: •Stochastic MILP model for the optimal energy planning of a power system. •Power market dynamics (offers/bids) are incorporated in the proposed model. •Monte Carlo method for capturing the uncertainty of some key parameters. •Analytical supply cost composition per power producer and activity. •Clean dark and spark spreads are calculated for each power unit. -- Abstract: This paper presents an optimization-based methodological approach to address the problem of the optimal planning of a power system at an annual level in competitive and uncertain power markets. More specifically, a stochastic mixed integer linear programming model (MILP) has been developed, combining advanced optimization techniques with Monte Carlo method in order to deal with uncertainty issues. The main focus of the proposed framework is the dynamic formulation of the strategy followed by all market participants in volatile market conditions, as well as detailed economic assessment of the power system’s operation. The applicability of the proposed approach has been tested on a real case study of the interconnected Greek power system, quantifying in detail all the relevant technical and economic aspects of the system’s operation. The proposed work identifies in the form of probability distributions the optimal power generation mix, electricity trade at a regional level, carbon footprint, as well as detailed total supply cost composition, according to the assumed market structure. The paper demonstrates that the proposed optimization approach is able to provide important insights into the appropriate energy strategies designed by market participants, as well as on the strategic long-term decisions to be made by investors and/or policy makers at a national and/or regional level, underscoring potential risks and providing appropriate price signals on critical energy projects under real market operating conditions.

Converters for Distributed Power Generation Systems

DEFF Research Database (Denmark)

Blaabjerg, Frede; Yang, Yongheng

2015-01-01

Power electronics technology has become the enabling technology for the integration of distributed power generation systems (DPGS) such as offshore wind turbine power systems and commercial photovoltaic power plants. Depending on the applications, a vast array of DPGS-based power converter...... topologies has been developed and more are coming into the market in order to achieve an efficient and reliable power conversion from the renewables. In addition, stringent demands from both the distribution system operators and the consumers have been imposed on the renewable-based DPGS. This article...... presents an overview of the power converters for the DPGS, mainly based on wind turbine systems and photovoltaic systems, covering a wide range of applications. Moreover, the modulation schemes and interfacing power filters for the power converters are also exemplified. Finally, the general control...

Research on market power and market structure: A direct measure of market power of internet platform enterprises

Directory of Open Access Journals (Sweden)

Baowen Sun

2017-09-01

Full Text Available Purpose – This paper aims to clear whether the monopoly structure of the internet industry has produced market power and discussed the welfare change of the internet industry monopoly. Design/methodology/approach – By using new empirical industrial organization methods and taking the e-commerce market as an example, the authors measured market power and economies of scale of the internet platform companies. Findings – Internet platform enterprises have formed scale economy, but it has not had market power, and the industry still maintains high levels of competition; also, the emergence of large enterprises may increase the welfare of consumers. Originality/value – The conclusion of this paper clarified actual competition status of internet industry and provided a new foothold for regulation and ideas for the traditional industry to crack the Marshall Conflict.

Deregulation and competitive power markets -- Its impact on developing economies

International Nuclear Information System (INIS)

Saran, K.

1998-01-01

The aim of privatization in developed countries is to encourage competition in generation and supply of power whereas the focus of developing economies is to bridge the demand supply gap by addition of capacity. However, there needs to be a reconciliation between these two apparently having conflicting objectives even in case of developing economies. In competitive power markets it is necessary that rules of the game are identified in advance and followed uniformly by all players. Existence of a ''referee'' would be necessary to regulate the game so as to ensure fair play. The regulatory institution would serve this purpose and work as a stimulator to development of privatization and competitive power markets in developing economies. Consumer interests should be of upper-most priority in the mind while establishing power markets and regulatory institutions, particularly as market forces are unfavorable to consumer interests in power shortage conditions. As competition fosters, gradually market forces take over and the ''harsh'' regulator would convert itself to a ''silent vigil referee'' so as to ensure genuine competition. The debate of deregulation vs. regulation will continue but the show must go on for building of an increasingly sound, competitive and vibrant power sector in the interest of end use consumers. The planned and phased restructuring though a delayed process is a preferred process and India is fully determined to achieve this

Interdependency Assessment of Coupled Natural Gas and Power Systems in Energy Market

Science.gov (United States)

Yang, Hongzhao; Qiu, Jing; Zhang, Sanhua; Lai, Mingyong; Dong, Zhao Yang

2015-12-01

Owing to the technological development of natural gas exploration and the increasing penetration of gas-fired power generation, gas and power systems inevitably interact with each other from both physical and economic points of view. In order to effectively assess the two systems' interdependency, this paper proposes a systematic modeling framework and constructs simulation platforms for coupled gas and power systems in an energy market environment. By applying the proposed approach to the Australian national electricity market (NEM) and gas market, the impacts of six types of market and system factors are quantitatively analyzed, including power transmission limits, gas pipeline contingencies, gas pipeline flow constraints, carbon emission constraints, power load variations, and non-electric gas load variations. The important interdependency and infrastructure weakness for the two systems are well studied and identified. Our work provides a quantitative basis for grid operators and policy makers to support and guide operation and investment decisions for electric power and natural gas industries.

Air quality analysis for the Western Area Power Administration's 2004 Power Marketing Plan Environmental Impact Statement

International Nuclear Information System (INIS)

Glantz, C.S.; Dagle, J.E.; Bilyard, G.R.

1997-01-01

The Western Area Power Administration (Western) markets and transmits electric power throughout 15 western states. Western's Sierra Nevada Customer Service Region (Sierra Nevada Region) markets approximately 1,480 megawatts (MW) of firm power (plus 100 MW of seasonal peaking capacity) from the Central Valley Project (CVP) and other resources. Western's mission is to sell and deliver electricity generated from these resources. Western's capacity and energy sales must be in conformance with the laws that govern its sale of electrical power. Further, Western's hydropower operations at each facility must comply with minimum and maximum flows and other constraints set by other regulatory agencies. The Sierra Nevada Region proposes to develop a marketing plan that defines the products and services it would offer beyond the year 2004 and the eligibility and allocation criteria for its electric power resources. Because determining levels of long-term firm power resources to be marketed and subsequently entering into contracts for the delivery of related products and services could be a major Federal action with potentially significant impacts to the human environment, the 2004 Power Marketing Plan Environmental Impact Statement (2004 EIS) is being prepared. Decisions made by the Sierra Nevada Region on how and when to supply power to its customers would influence the operation of power plants within the Western Systems Coordinating Council (WSCC). If the resources affected are thermal resources, this could in turn affect the amount, timing, and location of pollutant emissions to the air at locations throughout the western United States. This report has been produced in conjunction with the 2004 EIS to provide a more detailed discussion of the air quality implications of the 2004 power marketing plan

France liberalizes its power supply market

International Nuclear Information System (INIS)

Anon.

2004-01-01

The French market of power supply to companies is now free. This means that Electricite de France (EdF), the first world electric utility now has competitors in its domestic market. This is an important challenge for EdF because 3 millions of clients (70% of the French power consumption) are now concerned by the opening of the power market. According to A. Merlin, head of the energy transportation network (RTE), the opening of the market does not increase the risk of black-out, it just makes the operation of power networks more complex. The implementation of a single power transportation company (RTE) simplifies the mastery of networks safety but the development of investments is necessary to ensure the maintenance of 400 kV power lines. A comparison of the situation of power market liberalization is made for 6 countries (Germany, UK, Spain, US, Netherlands and Italy). Short paper. (J.S.)

Revised Environmental Assessment for the Sacramento Area Office Western Area Power Administration, 1994 Power Marketing Plan

International Nuclear Information System (INIS)

1992-08-01

This document presents information on power marketing; expiring contracts; economic methods and assumptions; detailed power supply cost data; guidelines and acceptance criteria for conservation and renewable energy projects; hourly flow impacts graphs; difference in hydro dispatch; generation data; flow data; fishery resources of the Sacramento River; and water quality

Evolving natural gas markets: LNG possibilities for a hydrothermal power system

Energy Technology Data Exchange (ETDEWEB)

Correia, Tiago B.; Resende, Joao P.; Costa, Agnes M. [Brazilian Ministry of Mines and Energy, Brasilia, DF (Brazil)

2008-07-01

The latest advancements in the natural gas - NG industry have brought new opportunities for the resource's application, especially in the power industry. On the one hand, rapid growth in demand and falling costs of transportation over long distances, particularly as liquefied natural gas - LNG, should lead to a more integrated NG world market. On the other, the deregulation of electricity markets and the growth of independent power producers - IPPs using NG as a fuel for generating peak load power have increased the demand for more flexible NG supply contracts. These factors have allowed a shift in the timing of investment and contract negotiation in NG market. Traditionally, firms searched for trading partners and signed long-term contracts before investing in infrastructure. In the evolving LNG market, producers invest in infrastructure before they have buyers for all their expected outputs, while buyers undertake investment before having firm contracts for all their expected NG needs. These technological and market changes may foster greater participation of a fully flexible NG power plants in the Brazilian electricity market. Nowadays, thermal power long-term capacity contracts customized and negotiated in the local electricity pool (ACR) require power producer to award guarantees of NG firm supply, substantially increasing their cost. A combination of flexible LNG supply contracts and electricity pool contracts may present a solution to the lack of competitiveness of NG power plants in the Brazilian power industry. (author)

Market system infrastructure: a major issue for the power system reliability

International Nuclear Information System (INIS)

Passelergue, J.Ch.

2005-01-01

The restructuring and opening of the electricity market made more complex the power system operation. While the system operator does not own anymore the generation assets, a perfect coordination with the market players is critical to guarantee the power system operation reliability. The market platforms, which are the main links between the system operator and the market players, must include communication means guaranteeing an uninterrupted service. The data-processing infrastructure must thus be designed to ensure the market system accessibility, as well as the effective exchange of data. Moreover, the market systems must facilitate the market operation and monitoring. They must allow the definition of a business process that, on the one hand, allows sequencing the users' actions, and that, on the other hand, provides the errors detected during the data-processing. Lastly, the market systems must facilitate the putting in place and follow-up by the market operator of operational procedures covering all the situations the operator can have to face. (author)

Price formation and market power in the German wholesale electricity market in 2006

International Nuclear Information System (INIS)

Weigt, Hannes; Hirschhausen, Christian von

2008-01-01

From 2002 to 2006, German wholesale electricity prices more than doubled. The purpose of this paper is to estimate the price components in 2006 in order to identify the factors responsible for the increase. We develop a competitive benchmark model, taking into account power plant characteristics, fuel and CO 2 -allowance prices, wind generation, cross-border flows, unit commitment, and startup conditions, to estimate the difference between generation costs and observed market prices for every hour in 2006. We find that prices at the German wholesale market (European Energy Exchange - EEX) are above competitive levels for a large fraction of the observations. We verify the robustness of the results by carrying out sensitivity analyses. We also address the issue of revenue adequacy. (author)

Market conditions for wind power and biofuel-based cogeneration

International Nuclear Information System (INIS)

1994-07-01

The aim of this study is to analyze the prerequisites for biofuel-based cogeneration plants and for wind power, with special emphasis on following factors: 1/ The effect on the Swedish energy market of the opening of the power transmission networks for free competition within the electric power supply sector. 2/ A market model for the connection between the prices on fossil fuels, biomass fuels, electric power, and heating on the Swedish market. The analysis is made for three scenarios concerning carbon dioxide/energy taxation and the oil price development. The three scenarios are: A. Constant prices on heating oil and coal., B. An internationally uniform carbon dioxide tax, which successively is raised to SEK 0.40 per kilo carbon dioxide to the year 2010. In the year 2005 this will correspond to a doubling of the present prices on crude oil., C. An unilateral Swedish energy- and carbon dioxide tax of todays model (without exception for electric power generation), with constant import prices on heating oil and coal. The decisive factors for bio-cogeneration are construction- and operation costs, the costs of biofuels, and the sales price on electric power and heat. For wind power it is the construction- and operation costs that settle the conditions. 18 figs, 6 tabs

Power plant engineering for overseas market

Energy Technology Data Exchange (ETDEWEB)

Chun, K.S.

1994-12-31

Korea`s experience in power plant engineering for the overseas market is reviewed. The following topics are discussed: the Asian electric power market, ordering characteristics, country situations, and overseas market requirements.

Outlook for the power requirements by the northeast U.S. power pool: Who will serve this market?

International Nuclear Information System (INIS)

Anderson, E.P.

1993-01-01

The size of the potential natural gas market in the northeast U.S. and how it will be served are discussed. One of the most promising markets for natural gas in this area is for power generation, using combined-cycle generating units that are efficient and have low environmental impact. It is estimated that by 2002 natural gas requirements for electrical power generation in the northeast could reach 750 billion cubic feet per year. This market will be served through several new gas pipelines and through expansion of the existing pipeline capacity. Projections for electricity production for the northeast, including the New York Power pool, show an increase from 236,423 GWh in 1992 to 275,558 GWh in 2002, an increase of ca 17%. Non-utility generation will increase its share from 14% in 1992 to 26% in 2002. Utility switching to natural gas during summer months to control nitrogen oxide emissions will give natural gas more flexibility to compete with other options to reduce air pollution. Pipeline capacity additions planned for the northeast are reviewed, including the Liberty pipeline, Empire State pipeline, Portland gas transmission system, Minuteman delivery system and Mayflower gas transmission system. There will be more than adequate reliable and flexible pipeline capacity created to meet the future demand for natural gas in this region. 14 figs

The gains and losses of collusion: An empirical research on the market behaviors of China’s power enterprises

Directory of Open Access Journals (Sweden)

Ruize Gao

2015-05-01

Full Text Available Purpose: Collusion is a common behavior of oligarch enterprises aiming to get an advantage in market competition. The purpose of the thesis is to use the empirical research methods to explore positive or negative effects that the electricity generation manufacturers’ collusion has caused at the macro level of Market Economy and the micro level of enterprises’ behaviors. Design/methodology/approach: The designed research model in the thesis is an extension of Porter’s model (Porter, 1984. It applies a more advanced measurement method, FIML. In the example of price bidding project that started by electricity generation enterprises of China’s power industry, the thesis analyzes the relevant price data of subordinate power plants of China’s five power generation groups in pilots of price bidding Policy. Findings: It is found in the thesis that power generation enterprises are facing collusion issues in the market. To be exact, it is such a situation in which non-cooperative competition and collusion alternate. Under the competition, market is relatively steady, thus forming a lower network price. It is helpful to the development of the whole industry. However, once Cartel is formed, the price will rise and clash with power enterprises and transmission-distribution companies concerning the interests conflicts. At the same time, a higher power price will form in the market, making consumers suffer losses. All of these are bad for industry development. Not only the collusion of power enterprises affects power price but also the market power that caused by long-time Cartel will reduce the market entrant in electricity generation. Market resources are centralized in the hands of Cartel, causing a low effective competition in the market, which has passive effects on users. Implications: The empirical research also indicates that collusion undoubtedly benefits the power enterprises that involved. As a cooperation pattern, collusion can lead to

Recent developments in the electricity generation market in 2014

International Nuclear Information System (INIS)

Hofmann, Holger

2015-01-01

Following up the report on the developments in the Electricity market from last year to this case this article shall give an overview of the current developments in 2014. The year 2014 was marked by the energy sector Program of the coalition agreement, which, under the three objectives of security of supply Affordability and environmental impact which has made clear Specifications for the production side in particular with regard to the final Nuclear Phase-out phase, the announced amendment of the EEG, system stability and also Fracking. The predominant theme in 2014 this was certainly the reform of the EEG and around it rambling topics on European level. Too much uncertainty with plant operators, investors and companies in German power generation market, has led in addition to the mentioned legislative package the revision of the EU environmental and energy aid guidelines, State aid procedure of the European Commission regarding the German promotion of electricity from renewable Energy and the process in the case of Aaland Vindkraft before the ECJ. The dynamics on the generation side, inter alia through the increased connection of decentralized generation plants, result in an increasing regulation in power generation. Finally a first bill for Fracking is published at the end of 2014. [de

CO2 abatement policies in the power sector under an oligopolistic gas market