On the viability of energy-capacity markets under decreasing marginal costs

2021 ◽  
Vol 96 ◽  
pp. 105157
Author(s):  
Peyman Khezr ◽  
Rabindra Nepal
Keyword(s):  
Energy Capacity ◽  
Marginal Costs ◽  
Capacity Markets

scholarly journals Equilibrium Pricing with Duality-Based Method: Approach for Market-Oriented Capacity Remuneration Mechanism

Energies ◽  
2021 ◽  
Vol 14 (3) ◽  
pp. 567
Author(s):  
Perica Ilak ◽  
Lin Herenčić ◽  
Ivan Rajšl ◽  
Sara Raos ◽  
Željko Tomšić
Keyword(s):  
Power System ◽  
Capacity Utilization ◽  
Case Scenario ◽  
Program Problem ◽  
Worst Case ◽  
Design Elements ◽  
Marginal Costs ◽  
Capacity Markets ◽  
Linear Program Problem

The crucial design elements of a good capacity remuneration mechanism are market orientation, insurance of long-term power system adequacy, and optimal cross-border generation capacity utilization. Having in mind these design elements, this research aims to propose a financially fair pricing mechanism that will guarantee enough new capacity and will not present state aid. The proposed capacity remuneration mechanism is an easy-to-implement linear program problem presented in its primal and dual form. The shadow prices in the primal problem and dual variables in the dual problem are used to calculate the prices of firm capacity which is capacity needed for long-term power system adequacy under capacity remuneration mechanism. In order to test if the mechanism ensures sufficient new capacity under fair prices, the mechanism is tested on the European Network of Transmission System Operators for Electricity (ENTSO-E) regional block consisting of Austria, Slovenia, Hungary, and Croatia with simulation conducted for a period of one year with a one-hour resolution and for different scenarios of the credible critical events from a standpoint of security of supply; different amounts of newly installed firm capacity; different short-run marginal costs of newly installed firm capacity; and different capacity factors of newly installed firm capacity. Test data such as electricity prices and electricity load are referred to the year 2018. The results show that the worst-case scenario for Croatia is an isolated system scenario with dry hydrology that results with high values of indicators expected energy not served (EENS), loss of load expectation (LOLE), and loss of load probability (LOLP) for Croatia. Therefore, new capacity of several hundred MW is needed to stabilize these indicators at lower values. Price for that capacity depends on the range of installed firm capacity and should be in range of 1000–7000 €/MW/year for value of lost load (VoLL) in Croatia of 1000 €/MWh and 3000–22,000 €/MW/year for VoLL of 3100 €/MWh that correlates with prices from already established capacity markets. The presented methodology can assist policymakers, regulators, and market operators when determining capacity remuneration mechanism rules and both capacity and price caps. On the other hand, it can help capacity market participants to prepare the most suitable and near-optimal bids on capacity markets.

H∞ Control Approach to Reduction of Energy Capacity of Energy Storage Systems

2017 ◽  
Vol 137 (8) ◽  
pp. 596-597
Author(s):  
Kenta Koiwa ◽  
Kenta Suzuki ◽  
Kang-Zhi Liu ◽  
Tadanao Zanma ◽  
Masashi Wakaiki ◽  
...  
Keyword(s):  
Energy Storage ◽  
Storage Systems ◽  
Energy Capacity ◽  
Energy Storage Systems ◽  
Control Approach

Fine liquor colour: how does it affect energy, capacity and sugar losses?

2015 ◽  
pp. 375-378
Author(s):  
Ahmed S. Vawda ◽  
Emmanuel M. Sarir ◽  
Carlos Andrés Donado
Keyword(s):  
Energy Capacity ◽  
Important Process ◽  
Separation Processes ◽  
Impurity Removal ◽  
Process Operations ◽  
Fuel Costs

Impurity removal by separation and crystallisation are the most important process operations in a refinery. This paper studies the main separation processes, namely clarification, decolourisation and crystallisation to demonstrate where poor separation contributes to excessive costs of processing. The results of various tests are analysed and conclusions are made for refiners to manage their chemical and fuel costs.

Enhancing community welfare through improved water quality: a case for applying staggered pollution charges in the river Musi sub-basin of Andhra Pradesh, India

Water Policy ◽  
2005 ◽  
Vol 7 (5) ◽  
pp. 469-483
Author(s):  
Tishya Chatterjee
Keyword(s):  
Andhra Pradesh ◽  
Relevant Literature ◽  
Pollution Prevention ◽  
Economic Benefits ◽  
Environmental Damage ◽  
Marginal Costs ◽  
Community Acceptance ◽  
Level Data ◽  
Over Time

In conditions of severe water-pollution and dormant community acceptance of accumulating environmental damage, the regulator's role goes beyond pollution prevention and more towards remediation and solutions based on the community's long-term expectations of economic benefits from clean water. This paper suggests a method to enable these benefits to become perceptible progressively, through participatory clean-up operations, supported by staggered pollution charges. It analyses the relevant literature on pollution prevention and applies a cost-based “willingness to pay” model, using primary basin-level data of total marginal costs. It develops a replicable demand-side approach imposing charge-standard targets over time in urban-industrial basins of developing countries.

scholarly journals Estimating the marginal costs of road wear

2020 ◽  
Vol 139 ◽  
pp. 455-471
Author(s):  
Jan-Eric Nilsson ◽  
Kristin Svensson ◽  
Mattias Haraldsson
Keyword(s):  
Marginal Costs

Mergers and marginal costs: New evidence on hospital buyer power

2021 ◽  
Vol 52 (1) ◽  
pp. 151-178
Author(s):  
Stuart V. Craig ◽  
Matthew Grennan ◽  
Ashley Swanson
Keyword(s):  
Marginal Costs ◽  
Buyer Power ◽  
New Evidence

scholarly journals Consumer Preferences and Willingness to Pay for Potting Mix with Biochar

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3432
Author(s):  
McKenzie Thomas ◽  
Kimberly L. Jensen ◽  
Dayton M. Lambert ◽  
Burton C. English ◽  
Christopher D. Clark ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Online Survey ◽  
Product Information ◽  
Consumer Preferences ◽  
Market Potential ◽  
Marginal Costs ◽  
Consumer Demographics ◽  
Market Shares ◽  
Potential Market ◽  
Dedicated Energy Crops

Biochar is a co-product of advanced biofuels production from feedstocks including food, agricultural, wood wastes, or dedicated energy crops. Markets for soil amendments using biochar are emerging, but little is known about consumer preferences and willingness to pay (WTP) for these products or the depth of the products’ market potential for this product. This research provides WTP estimates for potting mix amended with 25% biochar, conditioned on consumer demographics and attitudes about product information labeling. Data were collected with an online survey of 577 Tennessee home gardeners. WTP was elicited through a referendum contingent valuation. Consumer WTP for an 8.81 L bag of 25% biochar potting mix is $8.52; a premium of $3.53 over conventional potting mix. Demographics and attitudes toward biofuels and the environment influence WTP. Biochar amounts demanded are projected for the study area’s potential market. Optimal prices, profits, and market shares are estimated across different marginal costs of producing biochar potting mix.

scholarly journals Capacity credit of storage in long-term planning models and capacity markets

2021 ◽  
Vol 194 ◽  
pp. 107070
Author(s):  
Tim Mertens ◽  
Kenneth Bruninx ◽  
Jan Duerinck ◽  
Erik Delarue
Keyword(s):  
Capacity Markets ◽  
Planning Models
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