scholarly journals Renewables, Reliability and Efficiency in Electricity Markets

2021 ◽  
Author(s):  
Frank Felder ◽  
Marie Petitet
Keyword(s):  
Power Systems ◽  
Electricity Markets ◽  
Electricity Market ◽  
Electricity Sector ◽  
Policy Framework ◽  
Renewable Electricity ◽  
Marginal Costs ◽  
Definition Of ◽  
High Level ◽  
High Share

The choice to use electricity markets to transition to an ultra-high renewable electricity sector depends on whether a high level of reliability and efficiency can be achieved. This study presents a reliability, resiliency and adaptability policy framework for a liberalized power system with a high share of renewables. This framework provides policy insights regarding electricity market reliability and the implications of remuneration mechanisms for renewables. Our analysis shows that it is necessary to reconsider adequacy assessments of liberalized power systems, to enhance the definition of the loss of load probability, and to explicitly consider the probability that the market clears. Under these conditions, electricity markets can theoretically achieve reliability and efficiency with large percentages of variable and intermittent renewable resources with zero or near-zero marginal costs, and market and technical challenges can be addressed.

Europe

2020 ◽  
pp. 649-666
Author(s):  
Andrea Renda
Keyword(s):  
Artificial Intelligence ◽  
Digital Technology ◽  
Policy Framework ◽  
Expert Group ◽  
Ethical Guidelines ◽  
Ethical Implications ◽  
Strong Focus ◽  
Ethics Guidelines ◽  
Definition Of ◽  
High Level

This chapter assesses Europe’s efforts in developing a full-fledged strategy on the human and ethical implications of artificial intelligence (AI). The strong focus on ethics in the European Union’s AI strategy should be seen in the context of an overall strategy that aims at protecting citizens and civil society from abuses of digital technology but also as part of a competitiveness-oriented strategy aimed at raising the standards for access to Europe’s wealthy Single Market. In this context, one of the most peculiar steps in the European Union’s strategy was the creation of an independent High-Level Expert Group on AI (AI HLEG), accompanied by the launch of an AI Alliance, which quickly attracted several hundred participants. The AI HLEG, a multistakeholder group including fifty-two experts, was tasked with the definition of Ethics Guidelines as well as with the formulation of “Policy and Investment Recommendations.” With the advice of the AI HLEG, the European Commission put forward ethical guidelines for Trustworthy AI—which are now paving the way for a comprehensive, risk-based policy framework.

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.

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 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 On the Remuneration to Electrical Utilities and Budgetary Allocation for Substation Maintenance Management

2021 ◽  
Vol 13 (18) ◽  
pp. 10125
Author(s):  
Pedro J. Zarco-Periñán ◽  
José L. Martínez-Ramos ◽  
Fco. Javier Zarco-Soto
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Common Element ◽  
Similar Distribution ◽  
Wide Range ◽  
Useful Life ◽  
Definition Of ◽  
Electrical Utilities ◽  
Budgetary Allocation

The liberalization of electricity markets has produced a great change in electrical utilities. One of these changes has affected the methodology for setting their remuneration. Depending on the country, these are different. Despite the wide range of remuneration methodologies for the electricity market of each country, they all feature one common element: the remuneration of operation and maintenance. One of the messages that this remuneration transmits is the need to extend the useful life of the facilities to allow sustainable development. This article focuses on the remuneration schemes of electrical utilities, the classification of substations for the definition of their maintenance programs, and the budget allocation for the execution of maintenance in these critical infrastructures. The particularity of these facilities, in which it is generally necessary to de-energize some of their parts for maintenance, has also been taken into account. To this end, a simple methodology currently used is presented based on the standardization of the bays of the substations and their classification into levels of importance. This classification into levels enables the facilities to be grouped according to similarities in their maintenance plans, although they differ from each other in terms of the periodicity of the application of maintenance procedures. This methodology guarantees a similar distribution of maintenance activities and financial needs over the years. In addition, the methodology allows one to know the importance of each substation (since the greater the equivalent weight, the greater the importance). Finally, the application of the proposed methodology in a real case is presented. It shows the simplicity, effectiveness, and lamination of the budgetary allocation of the proposed methodology, this being the main contribution of the formulation.

scholarly journals Influence of Wind Power on Intraday Electricity Spot Market: A Comparative Study Based on Real Data

Energies ◽  
2018 ◽  
Vol 11 (11) ◽  
pp. 2974 ◽  
Author(s):  
Pedro Frade ◽  
João Vieira-Costa ◽  
Gerardo Osório ◽  
João Santana ◽  
João Catalão
Keyword(s):  
Wind Power ◽  
Electricity Markets ◽  
Electricity Market ◽  
Consumer Satisfaction ◽  
Renewable Energy Sources ◽  
Spot Market ◽  
Electricity Sector ◽  
Market Condition ◽  
New Paradigm ◽  
Electricity Spot Market

Overtime, in the electricity sector, there has been a technological transfer to renewable electricity generation. With this change, processes, in the economic and availability terms, are expected to improve. In this new paradigm, society demands electricity without an impact on the environment and with the lowest possible cost. The wind power (WP) integration appears in this evolution process by achieving important technological advances, supporting in 2017 a growth of 44% of new projects in Europe, higher than any other renewable technology. However, the renewable energy sources (RES) integration in the electricity networks still presents technical difficulties and challenges, leading to challenges in the electricity markets (EMs). Therefore, this work evaluates the importance of WP and its influence on the Iberian Electricity Market (MIBEL), at the level of the intraday electricity spot market (IESM). This is an innovative study because literature usually focuses on day-ahead WP impact and this study focuses on intraday markets, which are closer to the consumption periods. The goal was to make an analysis on the impacts when betting on WP sources, in order to improve the market interaction with WP integration, considering as criteria the consumer satisfaction, in terms of lower electricity prices and WP availability. For this study, the market bids registered by the Iberian Electricity Market Operator (OMIE), from 2015 to 2017, ran over a new market simulator, specially developed for this proposal, considering a virtual market condition, but not considering the bids made by WP producers. The comparison of the results allowed the evaluation of the WP influence on the EM quantitative, which is noteworthy.

scholarly journals Locational Marginal Pricing (LMP) in Deregulated Electricity Market

2012 ◽  
pp. 283-287
Author(s):  
Basanta Kumar Panigrahi
Keyword(s):  
Linear Programming ◽  
Power Systems ◽  
Electricity Markets ◽  
Electricity Market ◽  
Power Flow ◽  
Supply And Demand ◽  
Locational Marginal Pricing ◽  
Marginal Pricing ◽  
Ac Power ◽  
Network Losses

The deregulation of electricity markets has a very large impact on almost all the power systems around the world. Competitive markets are complex systems with many participants who buy and sell electricity. Much of the complexity arises from the limitations of the underlying transmission systems and the fact that supply and demand must be in balance at all times. Generally the Locational marginal pricing (LMP) is obtained by solving a linear programming formulation. Network losses are considered through the preset loss factor based on historical operational information. This usually brings error in the calculated loss under different new scenarios. In this paper a new iterative LMP calculation method is proposed to overcome the aforementioned drawbacks associated with the traditional LMP calculations. At each iteration, a linear programming problem for market clearing is solved first .Losses on branches are considered as fictitious nodal demand at their terminal buses .Secondly the AC power flow calculated according to the dispatch results. Loss factors and fictitious nodal demand are then updated according to the AC power flow solution. The effectiveness of the proposed method is illustrated on PJM 5 bus

scholarly journals Obstacles to the formation of a common electricity market of the Eurasian Economic Union

2019 ◽  
Vol 114 ◽  
pp. 02002 ◽  
Author(s):  
Arthur Gibadullin ◽  
Valentina Pulyaeva
Keyword(s):  
Power Systems ◽  
Electricity Markets ◽  
Electricity Market ◽  
Electrical Energy ◽  
Legal Regulation ◽  
Member States ◽  
Eurasian Economic Union ◽  
The Common ◽  
Economic Union ◽  
The Creation

The current state of the economy and society is influenced by the global integration processes taking place in Eurasia - the creation of the Eurasian Economic Union, which should unite the markets for resources, goods and capital of the member states of the Eurasian Economic Union. One of the aspects of this process is the creation of a unified electricity market, which ensures free flow of electrical energy, free pricing and competition in the power industry. The purpose of this study is to study the degree of readiness of national energy systems for integration and to identify problems that impede the formation of the Common Electricity Market of the Eurasian Economic Union. The methods used were statistical analysis tools, a graphical method, comparisons and descriptions. The study was carried out on the basis of the use of information provided in the open access of the Eurasian Economic Union, national statistical services and energy companies. The authors have identified the main goals and objectives, as well as the requirements and expected results of the creation of the Common Electricity Market. As a result of the analysis of national power systems, a number of problems were identified that impede their convergence, including inconsistencies in the scale of production, various pricing mechanisms and electricity price regulation, differences in the energy balance of the Eurasian Economic Union member states, different levels of electricity prices, and a particular opinion Of the Republic of Belarus to the concept of market formation and the lack of unified borders of Armenia with other participating countries Union. The findings of the study indicate that by the stated date, namely July 1, 2019, the Common Electricity Market will most likely not be created for the reasons stated. To solve the identified problems, the authors propose several tools, one of the most important among them is the mechanism of regulatory and legal regulation of electricity markets at the national and supranational levels. Also, according to the authors, in the integration processes in the framework of the Eurasian Economic Union should consider the world experience of such political and economic associations.

scholarly journals Energy transitions and uncertainty: Creating low carbon investment opportunities in the UK electricity sector

2016 ◽  
Vol 34 (8) ◽  
pp. 1387-1403 ◽  
Author(s):  
Ronan Bolton ◽  
Timothy J Foxon ◽  
Stephen Hall
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Capital Intensity ◽  
Electricity Sector ◽  
Low Carbon ◽  
The Face ◽  
Incumbent Regime ◽  
The Uk ◽  
Low Carbon Technologies

This paper examines how actors in the UK electricity sector are attempting to deliver investment in low carbon generation. Low carbon technologies, because of their relative immaturity, capital intensity and low operational costs, do not readily fit with existing electricity markets and investment templates which were designed for fossil fuel based energy. We analyse key electricity market and infrastructure policies in the UK and highlight how these are aimed at making low carbon technologies ‘investable’ by reducing uncertainty, managing investment risks and repositioning actors within the electricity socio-technical ‘regime’. We argue that our study can inform contemporary debates on the politics and governance of sustainability transitions by empirically investigating the agency of incumbent regime actors in the face of uncertainty and by offering critical insights on the role of markets and finance in shaping socio-technical change.

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