The impact of market design on transmission and generation investment in electricity markets

2021 ◽  
Vol 93 ◽  
pp. 104934
Author(s):  
Veronika Grimm ◽  
Bastian Rückel ◽  
Christian Sölch ◽  
Gregor Zöttl
Keyword(s):  
Electricity Markets ◽  
Market Design ◽  
The Impact

The Impact of Market Design on Transmission and Generation Investment in Electricity Markets

2018 ◽  
Author(s):  
Veronika Grimm ◽  
Bastian Rückel ◽  
Christian Sölch ◽  
Gregor Zöttl
Keyword(s):  
Electricity Markets ◽  
Market Design ◽  
The Impact

scholarly journals Investment Incentives in Competitive Electricity Markets

2018 ◽  
Vol 8 (10) ◽  
pp. 1978 ◽  
Author(s):  
Jaber Valinejad ◽  
Taghi Barforoshi ◽  
Mousa Marzband ◽  
Edris Pouresmaeil ◽  
Radu Godina ◽  
...  
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Planning Horizon ◽  
Optimization Method ◽  
Design Criterion ◽  
Mixed Integer ◽  
Investment Incentives ◽  
Mixed Integer Linear Program ◽  
Interconnected Power System ◽  
The Impact

This paper presents the analysis of a novel framework of study and the impact of different market design criterion for the generation expansion planning (GEP) in competitive electricity market incentives, under variable uncertainties in a single year horizon. As investment incentives conventionally consist of firm contracts and capacity payments, in this study, the electricity generation investment problem is considered from a strategic generation company (GENCO) ′ s perspective, modelled as a bi-level optimization method. The first-level includes decision steps related to investment incentives to maximize the total profit in the planning horizon. The second-level includes optimization steps focusing on maximizing social welfare when the electricity market is regulated for the current horizon. In addition, variable uncertainties, on offering and investment, are modelled using set of different scenarios. The bi-level optimization problem is then converted to a single-level problem and then represented as a mixed integer linear program (MILP) after linearization. The efficiency of the proposed framework is assessed on the MAZANDARAN regional electric company (MREC) transmission network, integral to IRAN interconnected power system for both elastic and inelastic demands. Simulations show the significance of optimizing the firm contract and the capacity payment that encourages the generation investment for peak technology and improves long-term stability of electricity markets.

Sensitivity Based Approach for Transmission Congestion Management Utilizing Bids for Generation Rescheduling and Load Curtailment

2006 ◽  
Vol 7 (4) ◽  
Author(s):  
Himanshu Kumar Singh ◽  
S.C. Srivastava ◽  
Ashwani Kumar Sharma
Keyword(s):  
Electricity Markets ◽  
Power Flow ◽  
Reactive Power ◽  
Congestion Management ◽  
Test System ◽  
Hyperbolic Function ◽  
Flow Sensitivity ◽  
Fair Competition ◽  
Load Curtailment ◽  
The Impact

One of the most important tasks of System Operator (SO) is to manage congestion as it threatens system security and may cause rise in electricity price resulting in market inefficiency. In corrective action congestion management schemes, it is crucial for SO to select the most sensitive generators to re-schedule their real and reactive powers and the loads to curtail in extreme congestion management. This paper proposed the selection of most sensitive generators and loads to re-schedule their generation and load curtailment based on the improved line flow sensitivity indices to manage congestion. The impact of slack bus on power flow sensitivity factors has been determined to encourage fair competition in the electricity markets. Effect of bilateral and multilateral transactions, and impact of multi-line congestion on congestion cost has also been studied. The generators’ reactive power bid has been modeled by a continuous differentiable tangent hyperbolic function. The proposed concept of congestion management has been tested on a practical 75-bus Indian system and IEEE-118-bus test system.

An investigation of the mass-market fashion design process

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prabod Dharshana Munasinghe ◽  
D.G.K. Dissanayake ◽  
Angela Druckman
Keyword(s):  
Design Process ◽  
Market Design ◽  
High Volume ◽  
Design Stage ◽  
Fashion Design ◽  
Structured Interviews ◽  
Mass Market ◽  
Content Type ◽  
Responsible Consumption ◽  
The Impact

Purpose The process of fashion design varies between market segments, yet these variations have not yet been properly explored. This study aims to examine the fashion design process as practised at the mass-market level, as this is the most vibrant and the largest market segment in terms of production volumes and sales. Design/methodology/approach It is observed that 15 semi-structured interviews were conducted with mass-market fashion designers. Key activities of the mass-market design process were identified and a comparative analysis was conducted with the general design process. Findings The mass-market design process is found to prioritise profits rather than aesthetic aspects, with the buyer exercising more power than the designer. This hinders creativity, which, in turn, may impede a move towards more environmentally benign designs. Originality/value The clothing industry is responsible for high environmental impacts and many of these impacts arise through decisions made in the design stage. In particular, the mass-market for clothing because of its high volume of sales and fast throughput, accounts for a great deal of the impact. However, little is understood about the design process that is practised in the mass-fashion market. This paper fills the gap by developing a framework that describes the mass-market design process. Understanding the design process will enable progress to be made towards achieving the United Nations Sustainable Development Goal 12: Responsible Consumption and Production.

The emerging threat of artificial intelligence on competition in liberalized electricity markets: A deep Q-network approach

2021 ◽  
Author(s):  
Danial Esmaeili Aliabadi ◽  
Katrina Chan
Keyword(s):  
Electricity Markets ◽  
Information Disclosure ◽  
End Users ◽  
Influential Factors ◽  
Bidding Strategies ◽  
Q Learning ◽  
Development Goals ◽  
Available Information ◽  
The Impact

Abstract BackgroundAccording to sustainable development goals (SDGs), societies should have access to affordable, reliable, and sustainable energy. Deregulated electricity markets have been established to provide affordable electricity for end-users through advertising competition. Although these liberalized markets are expected to serve this purpose, they are far from perfect and are prone to threats, such as collusion. Tacit collusion is a condition, in which power generating companies (GenCos) disrupt the competition by exploiting their market power. MethodsIn this manuscript, a novel deep Q-network (DQN) model is developed, which GenCos can use to determine the bidding strategies to maximize average long-term payoffs using available information. In the presence of collusive equilibria, the results are compared with a conventional Q-learning model that solely relies on past outcomes. With that, this manuscript aims to investigate the impact of emerging DQN models on the establishment of collusive equilibrium in markets with repetitive interactions among players. Results and ConclusionsThe outcomes show that GenCos may be able to collude unintentionally while trying to ameliorate long-term profits. Collusive strategies can lead to exorbitant electric bills for end-users, which is one of the influential factors in energy poverty. Thus, policymakers and market designers should be vigilant regarding the combined effect of information disclosure and autonomous pricing, as new models exploit information more effectively.

Robustness of Norway Economy and Energy Supply/Demand

2017 ◽  
Vol 8 (2) ◽  
pp. 1-19 ◽  
Author(s):  
Alireza Aslani ◽  
Maryam Hamlehdar ◽  
Reza Saeedi
Keyword(s):  
Electricity Markets ◽  
Fossil Fuels ◽  
Fossil Fuel ◽  
Energy Sector ◽  
Good Choice ◽  
Energy Utilization ◽  
Economic Stability ◽  
High Dependency ◽  
Strategic Role ◽  
The Impact

Energy has a strategic role in the social and economic development of the countries all over the world. Due to the high dependency on fossil fuels, fluctuations in prices and supply have macro/micro-economics effects for both energy exporters and importers. Therefore, understanding economic stability based on energy market changes is an important subject for policy makers and researchers. Norway, as a fossil fuel export country, is a good choice for the analysis of the relationships between the economics robustness and fossil fuel economics fluctuations. While the country is one of the pioneers in the field of sustainable energy utilization, they have tried to provide a robust economic situation for the oil exports revenues. In this article, the effects of energy changes on the economy are investigated in Norway. In this regard, first, the impact of oil price on macro-economic parameters is discussed. Afterwards, the main issues related to the energy economics including resilience of the energy sector, energy policies, economics analysis of the energy sector, and the electricity markets are 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.

Are economists Kings? Economic evidence and discretionary assessments at the UK utility regulatory agencies

2020 ◽  
Author(s):  
Despoina Mantzari
Keyword(s):  
Decision Making ◽  
Electricity Markets ◽  
Political Action ◽  
Competition Law ◽  
Regulatory Agencies ◽  
Economic Regulation ◽  
Economic Evidence ◽  
Regulatory Decision ◽  
Trade Offs ◽  
The Impact

Abstract UK sectoral regulatory authorities are hybrid communities of, among others, lawyers and economists. Since the liberalization of essential services, expert economists enjoy broad discretionary powers in advancing the agencies’ broad statutory objectives. Yet, despite the significant societal impact of economic regulation, existing scholarship in the fields of competition law and regulation and public law has, with very few exceptions, disregarded these actors and the very essence of their work. This article aims to address this gap in the literature by blending theoretical with empirical insights deriving from 14 semi-structured elite interviews with regulatory economists in the regulatory agencies for energy (Office for Gas and Electricity Markets), telecoms (Office for Communications), and water (Office of Water Services). It explores the increased reliance on economics in the regulatory decision-making process and the impact this has had on the authorities’ decision-making and discretion, when making complex trade-offs between the various goals of the regulatory enterprise. In doing so, it puts forward a theoretical framework inspired by Craig Parsons’ typology of political action so as to identify and examine the nature and scope of the constraints that inform and shape the influence of economics in the exercise of regulatory discretion. This endeavour is significant in the sense that it is the first of its kind and, in that it provides a normative framework of analysis that can be applied in other areas of regulation heavily infused with and influenced by economic evidence and analysis, such as ‘pure’ competition law enforcement by both sectoral and competition authorities.

Sign in / Sign up

Export Citation Format

Share Document