scholarly journals Review of Information Disclosure in Different Electricity Markets

Energies ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 3424 ◽  
Author(s):  
Yang Yang ◽  
Minglei Bao ◽  
Yi Ding ◽  
Yonghua Song ◽  
Zhenzhi Lin ◽  
...  
Keyword(s):  
Power Systems ◽  
Electricity Markets ◽  
Electricity Market ◽  
Information Disclosure ◽  
Market Participants ◽  
Operation Process ◽  
Present Information ◽  
The World ◽  
Efficient Information ◽  
Deregulated Power Systems

Electricity markets have been established in many countries of the world. Electricity and services are traded in the competitive environment of electricity markets, which generates a large amount of information during the operation process. To maintain transparency and foster competition of electricity markets, timely and precise information regarding the operation of electricity market should be disclosed to the market participants through a centralized and authorized information disclosure mechanism. However, the information disclosure mechanism varies greatly in electricity markets because of different market models and transaction methods. This paper reviews information disclosure mechanisms of several typical electricity markets with the poolco model, bilateral contract model, and hybrid model. The disclosed information and clearing models in these markets are summarized to provide an overview of the present information disclosure mechanisms in typical deregulated power systems worldwide. Moreover, the various experiences for establishing an efficient information disclosure mechanism is summarized and discussed.

scholarly journals Operational Planning and Bidding for District Heating Systems with Uncertain Renewable Energy Production

Energies ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 3310 ◽  
Author(s):  
Ignacio Blanco ◽  
Daniela Guericke ◽  
Anders Andersen ◽  
Henrik Madsen
Keyword(s):  
Renewable Energy ◽  
Power Systems ◽  
Power System ◽  
Electricity Markets ◽  
Electricity Market ◽  
Renewable Energy Sources ◽  
District Heating ◽  
Operational Planning ◽  
Solution Approach ◽  
The Impact

In countries with an extended use of district heating (DH), the integrated operation of DH and power systems can increase the flexibility of the power system, achieving a higher integration of renewable energy sources (RES). DH operators can not only provide flexibility to the power system by acting on the electricity market, but also profit from the situation to lower the overall system cost. However, the operational planning and bidding includes several uncertain components at the time of planning: electricity prices as well as heat and power production from RES. In this publication, we propose a planning method based on stochastic programming that supports DH operators by scheduling the production and creating bids for the day-ahead and balancing electricity markets. We apply our solution approach to a real case study in Denmark and perform an extensive analysis of the production and trading behavior of the DH system. The analysis provides insights on system costs, how DH system can provide regulating power, and the impact of RES on the planning.

International Perspectives on Electricity Market Monitoring and Market Power Mitigation

2007 ◽  
Vol 6 (3) ◽  
Author(s):  
José A. García ◽  
James D. Reitzes
Keyword(s):  
Market Power ◽  
Electricity Markets ◽  
Electricity Market ◽  
Information Disclosure ◽  
Design Features ◽  
Disclosure Requirements ◽  
Market Monitoring ◽  
International Perspectives ◽  
Ex Post ◽  
Bilateral Trading

We review the different market monitoring and market-power mitigation policies that arise in world electricity markets. Regulators for electricity markets apparently respond to differences in underlying market structure and design features when choosing between ex-ante (that is, rule-based) behavioral restrictions as opposed to ex-post enforcement (that is, investigations and sanctions) as the principal means for deterring abuses of market power. Particular design features that influence market-monitoring policies are whether the market is one-part (energy only) versus two-part (energy and capacity), and whether there is centralized or bilateral trading. Information-disclosure requirements also are a key element of market monitoring.

scholarly journals A New Model to Simulate Local Market Power in a Multi-Area Electricity Market: Application to the European Case

Energies ◽  
2019 ◽  
Vol 12 (11) ◽  
pp. 2068 ◽  
Author(s):  
Alberto Orgaz ◽  
Antonio Bello ◽  
Javier Reneses
Keyword(s):  
Power Systems ◽  
Market Power ◽  
Electricity Markets ◽  
Electricity Market ◽  
Imperfect Competition ◽  
System Analysis ◽  
Original Method ◽  
Local Market ◽  
The Status ◽  
New Policies

The work presented in this article proposes an original method that models the medium-term market equilibrium under imperfect competition circumstances in multi-area electricity systems. It provides a system analysis considering multiple market splitting possibilities, where local market power may appear according to the status of the interconnections. As a result of new policies and regulations, power systems are increasingly integrating the existing electricity markets in unified frameworks. The integration of electricity markets poses highly challenging tasks due to the uncertainty that comes from the agents’ strategic behaviors which depend on multiple factors, for instance, the state of the interconnections. When it comes to modeling these effects, the purpose is to identify each strategy by using conjectured-price responses that depend on the different states of the system. Consequently, the problem becomes highly combinatorial, which heightens its size as well as its complexity. Therefore, the purpose of this work’s methodology is the reduction of the possible network configurations so as to ensure a computational tractability in the problem. In order to validate this methodology, it has been put to the test in a realistic and full-scale two-year operation planning model of the European electricity market that consists of a group of nine countries.

scholarly journals Solving Bid-Based Dynamic Economic Dispatch in Competitive Electricity Market Using Improved Simulated Annealing Algorithm

2020 ◽  
Vol 7 (4) ◽  
pp. 621-630
Author(s):  
Riyadh Bouddou ◽  
Farid Benhamida ◽  
Ismail Ziane ◽  
Amine Zeggai ◽  
Moussa Belgacem
Keyword(s):  
Simulated Annealing ◽  
Power Systems ◽  
Electricity Markets ◽  
Electricity Market ◽  
Large Scale ◽  
Simulated Annealing Algorithm ◽  
Economic Dispatch ◽  
Unit System ◽  
Annealing Algorithm ◽  
Dynamic Economic Dispatch

Electricity markets are open after the deregulation of power systems due to competition. An optimization problem based on dynamic economic dispatch has recently come up in the new context of deregulated power systems known as bid-based dynamic economic dispatch (BBDED). It is one of the major operations and control functions in the electricity markets used to determine the optimal operations of market participants with scheduled load demands during a specified period. BBDED involves power generation companies (GENCOs) and customers to submit energy and price bids to the independent system operator (ISO) in a day-ahead market. The ISO clears the market with the objective of social profit maximization. In this paper, a BBDED problem is solved using an improved simulated annealing algorithm (ISA), including system constraints with different periods under bidding strategies. The proposed ISA technique is implemented in MATLAB and applied on a 3-unit system, a 6-unit system, and a 40-unit large-scale system. The proposed ISA is evaluated by comparison with relevant methods available in the literature, to demonstrate and confirm its potential in terms of convergence, robustness, and effectiveness for solving the BBDED problem.

scholarly journals Use of Blockchain Technology in Energy Banking and Electricity Markets

2021 ◽  
Vol 2 (3) ◽  
pp. 179-186
Author(s):  
S. K. Jain ◽  
Paresh Khandelwal ◽  
P. K. Agarwal
Keyword(s):  
Real Time ◽  
Electricity Markets ◽  
Electricity Market ◽  
Electric Energy ◽  
Third Party ◽  
Over The Counter ◽  
Market Participants ◽  
Blockchain Technology ◽  
Power Exchange ◽  
The Cost

The power system reforms worldwide have commoditized electric energy and thus the electricity market has been developed. With this, trading of electric energy takes place in various time-domain like the day ahead, real-time, etc. These transactions take place through over the counter (OTC) or Power Exchange (Px) which provide to the market participants the required platform and payment security. The transactions on OTC and Px requires a third-party platform and guarantee for contract & settlement, there incurs overhead cost. Since electric energy is a fungible commodity, it can be transacted very well with the old system like barter. Energy Banking is one such mechanism wherein one utility supplies the energy to another utility that need it more and in leisure, the energy can then be provided back. The requisite security of the transactions can be provided by blockchain technology. Energy banking is presently being done only on MW quantum basis with no price tag despite the cost being dependent on the demand-supply ratio. To ensure energy banking transactions in real-time and free from the perils of financial settlements, this article suggests the use of the Peer-to-Peer (P2P) model of blockchain technology for executing Smart Contracts mutually agreed upon by both parties and avoiding third parties overhead costs. Doi: 10.28991/HIJ-2021-02-03-03 Full Text: PDF

scholarly journals Forecasting Short-term Wholesale Prices on the Irish Single Electricity Market

2018 ◽  
Vol 8 (6) ◽  
pp. 4060
Author(s):  
Francesco Arci ◽  
Jane Reilly ◽  
Pengfei Li ◽  
Kevin Curran ◽  
Ammar Belatreche
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Electricity Generation ◽  
Informed Trading ◽  
Electricity Prices ◽  
Customer Demand ◽  
Short Term ◽  
Market Participants ◽  
Energy Demands ◽  
Trading Decisions

Electricity markets are different from other markets as electricity generation cannot be easily stored in substantial amounts and to avoid blackouts, the generation of electricity must be balanced with customer demand for it on a second-by-second basis. Customers tend to rely on electricity for day-to-day living and cannot replace it easily so when electricity prices increase, customer demand generally does not reduce significantly in the short-term. As electricity generation and customer demand must be matched perfectly second-by-second, and because generation cannot be stored to a considerable extent, cost bids from generators must be balanced with demand estimates in advance of real-time. This paper outlines a a forecasting algorithm built on artificial neural networks to predict short-term wholesale prices on the Irish Single Electricity Market so that market participants can make more informed trading decisions. Research studies have demonstrated that an adaptive or self-adaptive approach to forecasting would appear more suited to the task of predicting energy demands in territory such as Ireland. We have identified the features that such a model demands and outline it here.

scholarly journals Formal modelling of the electricity markets: the example of the load reduction of electricity mechanism “NEBEF”

2021 ◽  
Vol 897 (1) ◽  
pp. 012017
Author(s):  
Florian Selot ◽  
Bruno Robisson ◽  
Claire Vaglio-Gaudard ◽  
Javier Gil-Quijano
Keyword(s):  
Demand Response ◽  
Electricity Markets ◽  
Electricity Market ◽  
Third Party ◽  
Formal Approach ◽  
New Parties ◽  
Eu Regulation ◽  
Market Participants ◽  
Final Consumer ◽  
The Eu

Abstract The liberalisation of the electricity market initiated at the beginning of the 21st century has opened it to new parties. To ensure the growth of participants’ number will support the system’s balance, the EU regulation 2019/943 confirms that “all market participants should be financially responsible of the imbalances they cause”. In their respective area, the transmission system operators develops the regulation in compliance with this condition. However, as the regulation takes into account the new realities of the market such as renewables, the interactions between the participants become more complex. One of the risks is that the imbalance of an actor may not be due to its own actions, not complying with the EU regulation then. To analyse this kind of implicit condition, we propose a formal approach to model the exchanges of energy. Using the French regulation as a base, we model the participants and their interactions in the form of symbolic equations using the energy-related terms as variables. In this paper, to illustrate the model we will use to analyse the entire electricity market, we apply it to the NEBEF mechanism only. This mechanism is dedicated to the selling of demand response in France and introduces a third party between the final producer and the final consumer: the demand response operator. We model the mechanism and analyse how the mechanism complies with the balancing responsibility. Our results demonstrate that the mechanism complies with the regulation but there are some limits due to the calculation method of the reference consumption.

scholarly journals A Comparative Study of Pricing Mechanisms to Reduce Side-Payments in the Electricity Market: A Case Study for South Korea

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3395
Author(s):  
Hansol Shin ◽  
Tae Hyun Kim ◽  
Kyuhyeong Kwag ◽  
Wook Kim
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Market Price ◽  
Production Costs ◽  
Market Participants ◽  
Locational Marginal Pricing ◽  
Side Payments ◽  
Sales Company ◽  
Convex Costs ◽  
The Cost

Under marginal-cost pricing, some generators cannot recover their production costs at the market price due to non-convexities in the electricity market. For this reason, most electricity markets pay side-payments to generators whose costs are not sufficiently recovered, but side-payments present the problem of deteriorating transparency in the market. Recently, convex hull pricing and extended locational marginal pricing have been reviewed or gradually introduced to reduce side-payments. Another method is to include non-convex costs in the market price, which is applied in the Korean electricity market. Although it is not generally considered in the electricity market, the Vickrey auction method is also one of the pricing mechanisms that can reduce side-payments. The main purpose of this study is to analyze the financial impact of these alternative pricing mechanisms on market participants through rigorous simulation. We applied the alternative pricing schemes to the Korean electricity market, and the impacts are analyzed by comparing the cost aspect of an electricity sales company and the profit aspect of generation companies. As a result of the simulation study, each pricing mechanism not only differed in the degree to which side-payments are reduced but also has different effects on the type of generators.

scholarly journals Impact of Bilateral Contracts on Wholesale Electricity Markets: In a Case Where a Market Participant Has Dominant Position

2019 ◽  
Vol 9 (3) ◽  
pp. 382 ◽  
Author(s):  
Athanasios Dagoumas
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Market Participant ◽  
Dominant Position ◽  
Market Participants ◽  
Bilateral Contracts ◽  
Generating Capacity ◽  
Energy Exchanges ◽  
Of Greece ◽  
Wholesale Electricity Markets

This paper aims at tackling how the bilateral contracts affect wholesale electricity markets. It examines different levels of bilateral contracts among producers and demand aggregators, aiming to quantify their effect. In addition, it focuses on markets where bilateral contracts could be used as a tool by market participants with a dominant position. Further, the paper examined a case with asymmetrical portfolios, namely where a market participant has a dominant position as in case of Greece, aiming to investigate if bilateral contracts can be used as a tool to manipulate the market. The simulations have been done by an optimization model that provides the economic dispatch and clearing of the day-ahead electricity market. The model incorporated bilateral contracts with committed generating capacity from producers, as well as dynamic bidding strategy per market participant. Results provide useful insights on the design of electricity markets, especially in case of designing voluntary energy exchanges where a market participant has a dominant position.

scholarly journals RENEWABLE ENERGY CERTIFICATES: APPLICATION POTENTIAL AND EFFIENCY

2020 ◽  
Vol 11 (1) ◽  
pp. 14-27
Author(s):  
M. M. Balashov
Keyword(s):  
Renewable Energy ◽  
Electricity Markets ◽  
Financial Burden ◽  
Renewable Energy Sources ◽  
Electric Energy ◽  
Energy Sources ◽  
Market Participants ◽  
The World ◽  
State And Market ◽  
Domestic Electricity

At the international level, the problem of the need to increase the contribution of renewable energy sources to domestic electricity demand is highly relevant. Since the production of renewable energy sources is quite expensive, many countries are developing various state and market incentives for investment in such energy sources. One such incentive is renewable energy certificates. The role of these certificates in the development of global renewable energy markets is invaluable. They not only help businesses achieve their goals in the field of renewable energy, but also reduce consumer payments for other renewable energy development programs. This article analyzes the current trends in the use of renewable energy certificates in the world and identifies the prospects for their use in the Russian Federation. In addition, the author of the article studied the issue of cost-effectiveness of renewable certificates. In order to assess the positive economic impact of the application of the certification system, calculations have been made to reduce the financial burden on participants in the Wholesale Electricity and Power Market by taking into account the funds received from the sale of these certificates to reduce payments by market participants to generators based on renewable sources under the program of agreements on the provision of capacity for generating objects operating on the basis of renewable energy sources, from the date of the start of supply of electric energy and of the last planned facility until the date of the last payment under the power capacity agreement. In addition, the author of the article studied the need for renewable energy certificates not only to obtain reliable data on the use of renewable energy sources, but also to create efficient electricity markets using renewable energy sources around the world.

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