Price-Based Commitment Decisions in the Electricity Market PDF Download

Author: Eric Allen
Publisher: Springer Science & Business Media
ISBN: 1447105710
Category : Technology & Engineering
Languages : en
Pages : 253

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Book Description
Offering a re-evaluation of the power industry, this book discusses decision-making for problems where a particular decision affects the options available at the next decision time. It covers a wide range of topics, from dynamic programming to future market decisions.

Author: Bowen Hua
Publisher:
ISBN:
Category :
Languages : en
Pages : 324

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Book Description
In recent years, with increasing renewable supply variability, thermal power plants have started up and shut down more frequently. These discrete commitment decisions, optimized in the unit commitment (UC) problem, have an impact on system operations as well as generation expansion planning (GEP). The non-convex costs associated with the commitment decisions may also lead to generators' incentive to deviate from the optimal dispatch under locational marginal prices. In this dissertation, we first propose a convex relaxation of UC based on a primal formulation of the Lagrangian dual problem. This convex relaxation is used (i) to solve the convex hull pricing problem in polynomial time, providing prices with better incentives in non-convex electricity markets, and (ii) to construct a computationally efficient GEP model that represents operational flexibility limits. Next, we present a tight formulation for the commitment of combined-cycle units with representation of their transition ramping. Finally, we propose a pricing method that reduces out-of-market payments in multi-interval real-time markets.

Author: Petter L. Skantze
Publisher: Springer Science & Business Media
ISBN: 146151701X
Category : Technology & Engineering
Languages : en
Pages : 220

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Book Description
The challenges currently facing particIpants m competitive electricity markets are unique and staggering: unprecedented price volatility, a crippling lack of historical market data on which to test new modeling approaches, and a continuously changing regulatory structure. Meeting these challenges will require the knowledge and experience of both the engineering and finance communities. Yet the two communities continue to largely ignore each other. The finance community believes that engineering models are too detailed and complex to be practically applicable in the fast changing market environment. Engineers counter that the finance models are merely statistical regressions, lacking the necessary structure to capture the true dynamic properties of complex power systems. While both views have merit, neither group has by themselves been able to produce effective tools for meeting industry challenges. The goal of this book is to convey the fundamental differences between electricity and other traded commodities, and the impact these differences have on valuation, hedging and operational decisions made by market participants. The optimization problems associated with these decisions are formulated in the context of the market realities of today's power industry, including a lack of liquidity on forward and options markets, limited availability of historical data, and constantly changing regulatory structures.

Author: Jean-Michel Glachant
Publisher: Edward Elgar Publishing
ISBN: 184980480X
Category : Business & Economics
Languages : en
Pages : 335

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Book Description
This book fills a gap in the existing literature by dealing with several issues linked to long-term contracts and the efficiency of electricity markets. These include the impact of long-term contracts and vertical integration on effective competition, generation investment in risky markets, and the challenges for competition policy principles. On the one hand, long-term contracts may contribute to lasting generation capability by allowing for a more efficient allocation of risk. On the other hand, they can create conditions for imperfect competition and thus impair short-term efficiency. The contributors – prominent academics and policy experts with inter-disciplinary perspectives – develop fresh theoretical and practical insights on this important concern for current electricity markets. This highly accessible book will strongly appeal to both academic and professional audiences including scholars of industrial, organizational and public sector economics, and competition and antitrust law. It will also be of value to regulatory and antitrust authorities, governmental policymakers, and consultants in electricity law and economics.

Author: Benjamin F. Hobbs
Publisher: Springer Science & Business Media
ISBN: 0306476630
Category : Business & Economics
Languages : en
Pages : 323

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Book Description
Over the years, the electric power industry has been using optimization methods to help them solve the unit commitment problem. The result has been savings of tens and perhaps hundreds of millions of dollars in fuel costs. Things are changing, however. Optimization technology is improving, and the industry is undergoing radical restructuring. Consequently, the role of commitment models is changing, and the value of the improved solutions that better algorithms might yield is increasing. The dual purpose of this book is to explore the technology and needs of the next generation of computer models for aiding unit commitment decisions. Because of the unit commitment problem's size and complexity and because of the large economic benefits that could result from its improved solution, considerable attention has been devoted to algorithm development in the book. More systematic procedures based on a variety of widely researched algorithms have been proposed and tested. These techniques have included dynamic programming, branch-and-bound mixed integer programming (MIP), linear and network programming approaches, and Benders decomposition methods, among others. Recently, metaheuristic methods have been tested, such as genetic programming and simulated annealing, along with expert systems and neural networks. Because electric markets are changing rapidly, how UC models are solved and what purposes they serve need reconsideration. Hence, the book brings together people who understand the problem and people who know what improvements in algorithms are really possible. The two-fold result in The Next Generation of Electric Power Unit Commitment Models is an assessment of industry needs and new formulations and computational approaches that promise to make unit commitment models more responsive to those needs.

Author: Fereidoon Sioshansi
Publisher: Elsevier
ISBN: 0080557716
Category : Technology & Engineering
Languages : en
Pages : 625

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Book Description
After 2 decades, policymakers and regulators agree that electricity market reform, liberalization and privatization remains partly art. Moreover, the international experience suggests that in nearly all cases, initial market reform leads to unintended consequences or introduces new risks, which must be addressed in subsequent “reform of the reforms. Competitive Electricity Markets describes the evolution of the market reform process including a number of challenging issues such as infrastructure investment, resource adequacy, capacity and demand participation, market power, distributed generation, renewable energy and global climate change. Sequel to Electricity Market Reform: An International Perspective in the same series published in 2006 Contributions from renowned scholars and practitioners on significant electricity market design and implementation issues Covers timely topics on the evolution of electricity market liberalization worldwide

Author: Antonio J. Conejo
Publisher: Springer Science & Business Media
ISBN: 1441974210
Category : Business & Economics
Languages : en
Pages : 549

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Book Description
Decision Making Under Uncertainty in Electricity Markets provides models and procedures to be used by electricity market agents to make informed decisions under uncertainty. These procedures rely on well established stochastic programming models, which make them efficient and robust. Particularly, these techniques allow electricity producers to derive offering strategies for the pool and contracting decisions in the futures market. Retailers use these techniques to derive selling prices to clients and energy procurement strategies through the pool, the futures market and bilateral contracting. Using the proposed models, consumers can derive the best energy procurement strategies using the available trading floors. The market operator can use the techniques proposed in this book to clear simultaneously energy and reserve markets promoting efficiency and equity. The techniques described in this book are of interest for professionals working on energy markets, and for graduate students in power engineering, applied mathematics, applied economics, and operations research.

Author: Chris Harris
Publisher: John Wiley & Sons
ISBN: 0470011580
Category : Business & Economics
Languages : en
Pages : 550

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Book Description
Understand the electricity market, its policies and how they drive prices, emissions, and security, with this comprehensive cross-disciplinary book. Author Chris Harris includes technical and quantitative arguments so you can confidently construct pricing models based on the various fluctuations that occur. Whether you?re a trader or an analyst, this book will enable you to make informed decisions about this volatile industry.

Author: Jeremy Larrieu
Publisher:
ISBN:
Category :
Languages : en
Pages : 37

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Book Description
In modern organized wholesale electricity markets, power is sold competitively in a two-settlement auction comprised of a short-term forward (or "day-ahead") market with elastic demand, and a spot (or "real-time") imbalance market characterized by an inelastic residual demand curve - a construct that the literature on the subject tends to ignore. To understand the strategic behavior of firms looking maximize joint profits over both markets, I construct a two-settlement model of electricity prices in which firms compete to meet demand from consumers, first in quantities, then in prices. I show that the ensuing forward premium depends on the costliness of spot commitment relative to firms' ability to exercise market power by setting quantities in the forward market. Using hourly data from the California Independent System Operator, I find that the model helps explain price formation in the California market, and that the forward market solutions are close to the Cournot outcome due to the relative insensitivity of the spot equilibrium price to individual firm's forward commitment decisions.

Author: Marija Ilic
Publisher: Springer Science & Business Media
ISBN: 0387097368
Category : Technology & Engineering
Languages : en
Pages : 558

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Book Description
Sustainable energy services to customers - a balanced choice and coordination of energy generated by traditional and alternative sources - are the subject of this new innovative book. The myriad factors involved in modeling an effective sustainable power system are overwhelming. The “Green Islands” project represents a decade of work by over a dozen researchers who have developed a model designed to utilize the potential of distributed clean resources. The key is the proper use of Information Technology (IT). Sited on two islands in the Azores, the project developed the model of careful forecasting of demand and supply, down to the minute, coordinating the output of conventional power plants, wind energy, fly wheels, hydroelectricity, demand reduction, and even plug-in electric vehicles to take full advantage of the clean resources available. The energy contingencies of the remote islands are not unique. The issues of integrating promising clean technologies, such as wind, into a complex power grid are challenging in geographically far-flung, island-scale, power systems. Model-based sensing, communications, and decision-making algorithms to coordinate adaptive load management (ALM) could enable customers to utilize just-in-time (JIT), just-in-place (JIP), and just-in-context (JIC) energy resources. The distribution of flexible and efficient energy to customers is the goal. The model the authors have developed could change the way power portfolios are built. A new perspective for optimization of green energy is presented in this book. Additional data provided online via Springer represents a repository of real-world electric energy systems and its IT-enabled smarts.