Dual variable decomposition to discriminate the cost imposed by inflexible units in electricity markets

2021 ◽  
Vol 287 ◽  
pp. 116595
Author(s):  
Hassan Gharibpour ◽  
Farrokh Aminifar ◽  
Iman Rahmati ◽  
Arezou Keshavarz
Keyword(s):  
Electricity Markets ◽  
Dual Variable ◽  
The Cost

The Mitigation of the French Nuclear Option: New Industrial Realism and Technical Democracy

2002 ◽  
Vol 13 (2) ◽  
pp. 263-279 ◽  
Author(s):  
Dominique Finon
Keyword(s):  
Waste Management ◽  
Electricity Markets ◽  
Social Preferences ◽  
Public Inquiry ◽  
The Future ◽  
Parliamentary Committee ◽  
Set Up ◽  
The Stability ◽  
The Cost ◽  
Phase Out

Nuclear phase-out policies and the European obligation to liberalise electricity markets could put the French nuclear option dramatically at risk by influencing social preferences or by constraining power producers' investment choices in the future. So far, the particular institutional set-up which has allowed the efficient build-up and operation of several series of standardised reactors preserves the stability of the main elements of the option. However, important adaptations to the evolving industrial and political environment occur and contribute to changing the option. Some institutional changes (such as local public inquiry, creation of a Parliamentary committee, independence of safety authorities) and divergence between industrial interests already allow debates on internal options such as reprocessing, type of waste management deposits, ordering of an advanced PWR. These changes improve the cost transparency, even if internalisation of nuclear externalities (cost of insurance, provisions for waste management) is still incomplete. However, when effective, this internalisation would not affect definitively the competitive position of the nuclear production because of the parallel internalisation of CO2 externalities from fossil fuel power generation in the official rationale. Consequently the real issue for the future of the nuclear option in France remains the preservation of social acceptability in the perception of nuclear risks.

scholarly journals COST-DEPENDENT ELECTRIC CONSUMPTION AS A TOOL OF RISK MANAGEMENT OF NON-PAYMENT FOR ELECTRIC ENERGY OF INDUSTRIAL ENTERPRISES

2019 ◽  
pp. 8-19
Author(s):  
A. P. Dzyuba ◽  
I, A. Soloveva
Keyword(s):  
Power Consumption ◽  
Electricity Markets ◽  
Economic Effect ◽  
Electric Energy ◽  
Electricity Consumption ◽  
Machine Building ◽  
Industrial Equipment ◽  
Cost Of Electricity ◽  
Industrial Enterprises ◽  
The Cost

The growth of indebtedness of industrial enterprises operating in conditions of economic instability for consumed electricity and the sanctions imposed by the energy supplying organizations for late payments, determine the urgency of the problem of managing the risks of non-payment for energy from industrial enterprises. The article is devoted to the description of the method developed by the authors for managing the risks of non-payment of industrial enterprises for consumed electricity, based on the principles of price-dependent electricity consumption. Based on the study of the mechanism of formation of the cost of electricity purchased by industrial enterprises in the wholesale and retail electricity markets, special methods were proposed to control each component of the cost of electricity: electrical energy, electrical power, electricity transmission services. It justifies the need to develop options for operating modes of industrial equipment, such as nominal load mode, load limiting mode, technological minimum load, in order to effectively implement and use price-dependent power consumption in crisis conditions.Modeling scenarios of price-dependent demand management for power consumption is made on the example of a machine-building enterprise and the calculation and component-wise analysis of the economic effect of price-dependent management and the factors influencing its formation are carried out. The developed method allows you to effectively manage the risks of non-payment of industrial enterprises for electricity, as well as minimize the risks of restricting the supply of electricity to industrial facilities and disruptions in the operation of industrial equipment.

The competitiveness of nuclear energy in an era of liberalized markets and restrictions on greenhouse-gas emissions

2009 ◽  
pp. 37-62
Author(s):  
Luigi De Paoli ◽  
Francesco Gulli
Keyword(s):  
Electricity Markets ◽  
Electricity Generation ◽  
Nuclear Power ◽  
Power Plants ◽  
Nuclear Energy ◽  
Fossil Fuels ◽  
Levelized Cost Of Electricity ◽  
Cost Of Electricity ◽  
Generation Costs ◽  
The Cost

- The debate on the benefits of nuclear energy revolves around the very competitiveness of this energy source. This article tries to show why it is not easy to answer unambiguously the question whether or not it is convenient to resort to nuclear power in a given country. After listing the factors on which the cost of electricity generation rests and discussing the range of probability of their value, the levelized cost of electricity generation from nuclear, coal and gas-fired plants is calculated using the Monte Carlo method. The results show that nuclear power is likely to be competitive, especially if policies to combat CO2 emissions will continue in the coming decades. There are, however, some margins of uncertainty, mainly related, to the one hand, to the cost of nuclear plants, that depends on the socio-institutional context, and on the other, to the fossil fuels cost, that are inherently difficult to anticipate even on average. Finally it is noted that the context of liberalized electricity markets may make it more difficult for investors to accept the risk of investing in nuclear power plants and for the community to socialize some of the costs associated with this technology.Key words: Nuclear energy, generation costs, Montecarlo method, environmental impacts.JEL classifications: G11, H23, L72, L94, Q31, Q40

scholarly journals Pass-Through of Emissions Costs in Electricity Markets

2014 ◽  
Vol 104 (9) ◽  
pp. 2872-2899 ◽  
Author(s):  
Natalia Fabra ◽  
Mar Reguant
Keyword(s):  
Electricity Markets ◽  
Price Adjustment ◽  
Reduced Form ◽  
Electricity Prices ◽  
Inelastic Demand ◽  
Level Data ◽  
Micro Level ◽  
Optimal Bidding ◽  
Pass Through ◽  
The Cost

We measure the pass-through of emissions costs to electricity prices. We perform both reduced-form and structural estimations based on optimal bidding in this market. Using rich micro-level data, we estimate the channels affecting pass-through in a flexible manner, with minimal functional form assumptions. Contrary to many studies in the general pass-through literature, we find that emissions costs are almost fully passed through to electricity prices. Since electricity is traded through high-frequency auctions for highly inelastic demand, firms have weak incentives to adjust markups after the cost shock. Furthermore, the costs of price adjustment are small. (JEL D44, L11, L94, L98, Q52, Q54)

The Cost of Anarchy in Self-Commitment-Based Electricity Markets

2008 ◽  
pp. 245-266 ◽  
Author(s):  
RAMTEEN SIOSHANSI ◽  
SHMUEL OREN ◽  
RICHARD O'NEILL
Keyword(s):  
Electricity Markets ◽  
The Cost

scholarly journals COST-DEPENDENT ELECTRIC CONSUMPTION AS A TOOL OF RISK MANAGEMENT OF NON-PAYMENT FOR ELECTRIC ENERGY OF INDUSTRIAL ENTERPRISES

2019 ◽  
pp. 08-19
Author(s):  
A. P. Dzyuba ◽  
I, A. Soloveva
Keyword(s):  
Power Consumption ◽  
Electricity Markets ◽  
Economic Effect ◽  
Electric Energy ◽  
Electricity Consumption ◽  
Machine Building ◽  
Industrial Equipment ◽  
Cost Of Electricity ◽  
Industrial Enterprises ◽  
The Cost

The growth of indebtedness of industrial enterprises operating in conditions of economic instability for consumed electricity and the sanctions imposed by the energy supplying organizations for late payments, determine the urgency of the problem of managing the risks of non-payment for energy from industrial enterprises. The article is devoted to the description of the method developed by the authors for managing the risks of non-payment of industrial enterprises for consumed electricity, based on the principles of price-dependent electricity consumption. Based on the study of the mechanism of formation of the cost of electricity purchased by industrial enterprises in the wholesale and retail electricity markets, special methods were proposed to control each component of the cost of electricity: electrical energy, electrical power, electricity transmission services. It justifies the need to develop options for operating modes of industrial equipment, such as nominal load mode, load limiting mode, technological minimum load, in order to effectively implement and use price-dependent power consumption in crisis conditions.Modeling scenarios of price-dependent demand management for power consumption is made on the example of a machine-building enterprise and the calculation and component-wise analysis of the economic effect of price-dependent management and the factors influencing its formation are carried out. The developed method allows you to effectively manage the risks of non-payment of industrial enterprises for electricity, as well as minimize the risks of restricting the supply of electricity to industrial facilities and disruptions in the operation of industrial equipment.

scholarly journals Integrating Renewable Energy in Pacific Island Countries

2021 ◽  
Author(s):  
◽  
Marie Marconnet
Keyword(s):  
Renewable Energy ◽  
Electricity Markets ◽  
Pacific Islands ◽  
Portfolio Analysis ◽  
Pacific Island ◽  
Renewable Energy Resources ◽  
Energy Technologies ◽  
Pacific Island Countries ◽  
The Cost ◽  
Electricity Systems

<p>The purpose of this thesis is to investigate the entry of renewable energy technologies into Pacific Islands' electricity markets, with particular focus on a new technology: the Pelamis, a wave energy converter. Pacific Islands are endowed with various types of renewable energy resources, yet they remain highly dependent on expensive fuel imports for their energy requirements, using little renewable energy. This paradox is investigated by studying the characteristics of Pacific Islands' electricity markets, including a case study on the entry of a new renewable energy technology, the Pelamis, into the electricity market of Hawaii. The integration of renewable energy technologies into Pacific Islands' electricity systems is then analysed from the point of view of an energy planner. The recent application of portfolio analysis to energy planning has provided a new framework to evaluate the different electricity generating options available to energy planners. Taking both the generating cost and financial risk of each technology into account, portfolio theory has been applied to various European countries, by comparing actual generation portfolios to an efficient frontier showing the trade-off between energy security and the cost of electricity generation. This framework has clear relevance to Pacific Island Countries. However, the characteristics inherent to Pacific Island Countries have important implications on the operation of their electricity systems, which are not necessarily taken into account in portfolio analysis. In particular, geographical isolation inhibits these countries from connecting to larger intercontinental grids, which emphasizes the importance of reliability of supply. This thesis presents a mathematical model which establishes a method for computing an optimal intertemporal path for introducing renewable energy into a pre-existing electricity system. The model explicitly allows for the cost of maintaining reliability of supply as intermittent generators are integrated. The framework also incorporates concepts from Integrated Resource Planning and portfolio analysis. Finally, policies for accelerating renewable energy development are reviewed, and a discussion is provided on the policies which are likely to be most suitable to Pacific Islands. One of the main conclusions of this thesis is that the amount of backup capacity for renewable energy can be optimally minimized by diversifying the mix of renewable energy resources in each island. In practice, this would require studying the complementarities and loading curves of the various renewable resources available, and comparing their total potential production, and the variability of this production, to electricity demand. This would allow energy planners to model the inclusion of a maximum amount of renewable energy using a minimum of backup capacity to maintain system reliability, potentially leading to a more efficient implementation and formulation of policies aimed at developing renewable energy generation in Pacific Islands.</p>

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

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