Multi-Agent Stochastic Simulation for the Electricity Spot Market Price

Abstract The electricity market is threatened by supply scarcity, which may lead to very sharp price spikes in the spot market. On the other hand, demand-side’s activities could effectively mitigate the supply scarcity and absorb most of these shocks and therefore smooth out the price volatility. In this paper, the positive effects of employing demand response programs on the spot market price are investigated. A demand-price elasticity based model is used to simulate the customer reaction function in the presence of a real time pricing. The demand achieve by DR program is used to adjust the spot market price by using a price regression model. SAS software is used to run the multiple linear regression model and MATLAB is used to simulate the demand response model. The approach is applied on one week data in summer 2014 of Connecticut in New England ISO. It could be concluded from the results of this study that applying DR program smooths out most of the price spikes in the electricity spot market and considerably reduces the customers’ electricity cost.

Download Full-text

The impact of wind generation on the electricity spot-market price level and variance: The Texas experience

Energy Policy ◽

10.1016/j.enpol.2011.03.084 ◽

2011 ◽

Vol 39 (7) ◽

pp. 3939-3944 ◽

Cited By ~ 191

Author(s):

C.K. Woo ◽

I. Horowitz ◽

J. Moore ◽

A. Pacheco

Keyword(s):

Price Level ◽

Market Price ◽

Spot Market ◽

Wind Generation ◽

Electricity Spot Market ◽

The Impact

Download Full-text

Research on Funding Differences among Regional Electricity Markets in Northern China based on Thermoelectric Decoupling

E3S Web of Conferences ◽

10.1051/e3sconf/202018501017 ◽

2020 ◽

Vol 185 ◽

pp. 01017

Author(s):

Sen Wang ◽

Can Sun ◽

Zhiyong Gan ◽

Liansheng Zhou ◽

Guilin Wang ◽

...

Keyword(s):

Market Power ◽

Electricity Markets ◽

Electricity Market ◽

Supply And Demand ◽

Market Price ◽

Northern China ◽

Spot Market ◽

Market Mechanism ◽

Large Influence ◽

Electricity Spot Market

With the development of China’s electricity spot market, planned power and market power will coexist for a long time. At the same time, by avoiding the risk of market price fluctuation through medium and long-term market, spot market guarantees electricity balance and secure operation of the grid. The electricity market mechanism has an increasingly large influence on the operation and dispatching model of power system. In spot market, decoupling operation model of market and non-market power has a large influence on both supply and demand sides and improper dredging mechanism may cause significant settlement deviation. To solve this problem, the paper, taking a city in northern China as an example, analyzes the electricity spot market, compares the sources of difference fund of market and non-market power under decoupling and non-decoupling models and compares the pros and cons of coupling and decoupling. The paper also studies the disparity of difference fund and proposes advice adapted to the electricity spot market development of northern China.

Download Full-text

A Two-Stage Dispatch Mechanism for Virtual Power Plant Utilizing the CVaR Theory in the Electricity Spot Market

Energies ◽

10.3390/en12173402 ◽

2019 ◽

Vol 12 (17) ◽

pp. 3402 ◽

Cited By ~ 1

Author(s):

Rui Gao ◽

Hongxia Guo ◽

Ruihong Zhang ◽

Tian Mao ◽

Qianyao Xu ◽

...

Keyword(s):

Power Plant ◽

Demand Response ◽

Market Price ◽

Power Market ◽

Spot Market ◽

Virtual Power ◽

Two Stage ◽

Virtual Power Plant ◽

Electricity Spot Market ◽

The Impact

The electricity spot market is now being implemented in China. Demand response, as a kind of flexible resource, is also being studied and explored for the constructed power market. Among the many demand response applications, the virtual power plant (VPP) as an aggregator of distributed energy resources (DERs), receives ever-increasing attention. However, the participation manner and related impacts of the VPP to the electricity spot market are still unknown within the current power market rules. Under this background, obeying the present trading rules of China’s electricity spot market, a two-stage dispatching model with optimized bidding and operating strategy in the day-ahead (DA) and real-time (RT) market for the VPP is proposed. In the designed model, the conditional risk value (CVaR) is adopted to address the risk encountered by the uncertainty of the electricity spot market price. The impact of the user-side over-deviated revenue mechanism (UORM) of the China spot market on the income of the VPP in the DA and RT market is also analyzed. For a full evaluation, different coefficients for the influence of DA and RT risk, UORM, and energy storage system (ESS) are tested to investigate their respective impacts on the revenue of the VPP. The simulation cases prove that the proposed method is helpful for the VPP to optimize DERs’ output in the electricity spot market according to its own risk preference.

Download Full-text