scholarly journals The Optimal Mechanism Design of Retail Prices in the Electricity Market for Several Types of Consumers

Mathematics ◽  
2021 ◽  
Vol 9 (10) ◽  
pp. 1147
Author(s):  
Natalia Aizenberg ◽  
Nikolai Voropai
Keyword(s):  
Electricity Market ◽  
Electric Power System ◽  
Optimal Mechanism ◽  
General Welfare ◽  
Different Types ◽  
Payment Schemes ◽  
Retail Prices ◽  
Adverse Selection Problem ◽  
Pricing Schemes ◽  
Dependent Demand

In this paper, we discuss the demand side management (DSM) problem: how to incentivize a consumer to equalize the load during the day through price-dependent demand. Traditionally, the retail market offers several electricity payment schemes. A scheme is effective when the different tariffs satisfy different consumers. At the same time, the existing and generally accepted retail pricing schemes can lead to an "adverse selection" problem when all consumers choose the same price, thereby, reducing the possible general welfare. We propose an optimal design of pricing mechanisms, taking into account the interests of the electricity supplier and different types of consumers. The results of our work are that the optimal mechanism is implemented simultaneously for several periods, including the case when the ratio of types of consumers in periods changes. In addition, the mechanism proposed by us, in contrast to the studies of other researchers, provides an equilibrium close to the socially optimal maximum. We describe the implementation algorithm of the mechanism and provide examples of its action in the electric power system with different types and numbers of consumers.

Uticaj solarne elektrane na kvalitet električne energije u niskonaponskoj distributivnoj mreži

2020 ◽  
Vol 22 (1-2) ◽  
pp. 137-144
Author(s):  
Hidajet Salkić ◽  
Amir Softić ◽  
Amer Salkić
Keyword(s):  
Power Quality ◽  
Negative Feedback ◽  
Electricity Market ◽  
Reactive Power ◽  
Electric Power System ◽  
Integrated System ◽  
Distributed Source ◽  
Voltage Quality ◽  
Number Of Customers

The electric power system, as an integrated system for transmission, distribution and consumption of electricity, is one of the most complex technical and economic systems today. Customers affect on the voltage quality of power network, but the network also has an impact on customers. All disturbances in the network can disrupt operation of the network and affect on operation of the customers, as well as reduce the level of efficiency and operation life or even seriously damage network. Number of customers is increasing every day, as well as proportion of customers who generate disturbances in the network and, at the same time, are sensitive to them. These circumstances impose the need for frequent monitoring of the network, so the analysis of power quality is not unjustified cost but extremely important and profitable investment. The quality of electricity, as part of the overall quality supply of electricity customers in deregulated conditions of liberal electricity market becomes significant regulatory parameter for network operators and a significant contracting parameter on the electricity market. Network operators are obliged to establish a system of individual measurements and a system of permanent monitoring of power quality parameters to determine the state and improve the parameters to the standardized level. Technical parameters are determined by the recommendations made at the international level and may, but do not need, be legally binding. Maintaining a certain level of voltage quality at some point of the network is the responsibility of electricity distributor. This task distributor executes by limiting of negative effects of producer/customer to the network. Therefore, each electricity producer/customer is obliged to reduce own negative feedback effects (injection of higher harmonics, taking of reactive power, emissions of flickers and loads unbalances) to a prescribed, prearranged, limited values. There are many norms that describe the quality of electricity, but in Europe the best known is EN50160 (issued by CENLEC). This paper presents the approach to measuring the voltage quality at the point of electricity delivery from distributed source into distribution network from the aspect of limiting the negative feedback of distributed source on the voltage quality.

scholarly journals Electricity market efficiency and voltage stability

2021 ◽  
Author(s):  
Ayman Helmy Mostafa Elkasrawy
Keyword(s):  
Power System ◽  
Market Efficiency ◽  
Electricity Markets ◽  
Electricity Market ◽  
Voltage Stability ◽  
Electric Power System ◽  
Maximum Efficiency ◽  
Best Interest ◽  
The Relationship ◽  
System Layout

Several electricity markets were created in the last two decades by deregulation and restructuring vertically integrated utilities. In order to serve the best interest of participating entities, it is important to operate electricity markets at their maximum efficiency. In most cases, electricity markets were formed to operate on existing physical power systems that had evolved over several decades as vertically integrated utilities. Location of generating stations, large urban load centers and enabling transmission systems were unique to every power system and followed the 'lay of the land'. Depending upon a power system layout, voltage stability and margin to voltage collapse are unique to it. While an electricity market is to be operated efficiently, its optimal generation schedule to supply energy through an electric power system has to be reliable and meet the strict standards including those that relate to voltage stability. This work elicits the relationship between market efficiency and voltage stability. To this end, a formulation and a solution algorithm are presented. Two contrasting 5-bus cases illustrate how the transmission system layout influences the relationship between voltage stability and market efficiency. The IEEE 118-bus system is also used to illustrate this relationship.

scholarly journals An Inventory Model with Finite Replenishment Rate, Trade Credit Policy and Price-Discount Offer

2013 ◽  
Vol 2013 ◽  
pp. 1-18 ◽  
Author(s):  
Biswajit Sarkar ◽  
Shib Sankar Sana ◽  
Kripasindhu Chaudhuri
Keyword(s):  
Trade Credit ◽  
Point Of View ◽  
Price Discount ◽  
Price Discounts ◽  
Eoq Model ◽  
Different Types ◽  
Demand Patterns ◽  
Best Offer ◽  
Finite Replenishment Rate ◽  
Dependent Demand

When some suppliers offer trade credit periods and price discounts to retailers in order to increase the demand of their products, retailers have to face different types of discount offers and credits within which they have to take a decision which is the best offer for them to make more profit. The retailers try to buy perfect-quality items at a reasonable price, and also they try to invest returns obtained by selling those items in such a manner that their business is not hampered. In this point of view, we consider an economic order quantity (EOQ) model for various types of time-dependent demand when delay in payment and price discount are permitted by suppliers to retailers. The models of various demand patterns are discussed analytically. Some numerical examples and graphical representations are considered to illustrate the model.

scholarly journals Economic Analysis of Commercial Layer Production Decisions for Family Farm Operators

1973 ◽  
Vol 5 (1) ◽  
pp. 147-152
Author(s):  
G. Chris Lance
Keyword(s):  
Vertical Integration ◽  
Egg Production ◽  
Production Contracts ◽  
Production Growth ◽  
Different Types ◽  
The Sixties ◽  
Retail Prices ◽  
Farm Operators ◽  
Independent Ownership ◽  
Small Producers

Egg production in Georgia traditionally was by small producers with eggs marketed through retail stores. Beginning in the early 1960's feed millers, egg distributors and broiler integrators began shifting from broilers and other enterprises to commercial egg production. Growth of the industry through the decade of the sixties developed into two different types of production and marketing structures. Industry leaders primarily interested in selling feed, and handling eggs encouraged expansion of independent ownership of flocks by small producers. Independent producers purchased feed and started pullets at retail prices and sold eggs on a grade-yield basis to processor-distributors. Other industry leaders encouraged vertical integration by offering production contracts. Contract producers provided facilities and labor for egg production and received a fixed payment per unit from the integrator. The integrators owned the layers and provided feed, medication and supervision for flocks.

scholarly journals Optimal Operation Parameter Estimation of Energy Storage for Frequency Regulation

Energies ◽  
2019 ◽  
Vol 12 (9) ◽  
pp. 1782 ◽  
Author(s):  
Sung-Min Cho ◽  
Jin-Su Kim ◽  
Jae-Chul Kim
Keyword(s):  
Energy Storage ◽  
Objective Function ◽  
Electricity Market ◽  
Optimal Parameter ◽  
Storage System ◽  
Optimal Operation ◽  
Electric Power System ◽  
Frequency Regulation ◽  
Optimal Parameters ◽  
Calculation Algorithm

This study proposes a method for optimally selecting the operating parameters of an energy storage system (ESS) for frequency regulation (FR) in an electric power system. First, the method allows the optimal objective function of the selected parameters to be set in a flexible manner according to the electric market environment. The objective functions are defined so that they could be used under a variety of electricity market conditions. Second, evaluation frequencies are created in order to simulate the overall lifespan of the FR-ESS. Third, calendar and cycle degradation models are applied to the battery degradation, and are incorporated into evaluations of the degradation progress during the entire FR-ESS lifespan to obtain more accurate results. A calendar life limit is set, and the limit is also considered in the objective function evaluations. Fourth, an optimal parameter calculation algorithm, which uses the branch-and-bound method, is proposed to calculate the optimal parameters. A case study analyzes the convergence of the proposed algorithm and the results of the algorithm under various conditions. The results confirmed that the proposed algorithm yields optimal parameters that are appropriate according to the objective function and lifespan conditions. We anticipate that the proposed FR-ESS algorithm will be beneficial in establishing optimal operating strategies.

GIVING CAPITALISTS THEIR DUE

2005 ◽  
Vol 21 (1) ◽  
pp. 65-87 ◽  
Author(s):  
STEPHEN KERSHNAR
Keyword(s):  
Moral Responsibility ◽  
Economic System ◽  
Central Place ◽  
Market Imperfections ◽  
Moral Desert ◽  
General Welfare ◽  
Different Types ◽  
Selection Of

In general, capitalists deserve profits and losses for their contribution to the general welfare. Market imperfections and the range of permissible prices (at least within the boundaries of exploitation) prevent the alignment from being a direct one, but the connection generally holds. In the context of the market, this thesis preserves the central place of moral responsibility in moral desert. It also satisfies the fittingness and proportionality conditions of moral desert and provides a backward-looking and pre-institutional ground of it. In addition, the focus on contribution unifies several different types of act-based desert, specifically deserved profits and losses, deserved punishment, and deserved wages. Hence, to the extent that desert-satisfaction is relevant in the selection of an economic system, this result strengthens the case for capitalism.

Developed Machine Learning Technology and its Application on Electric Power System

2011 ◽  
Vol 217-218 ◽  
pp. 1289-1292
Author(s):  
Hua Zheng ◽  
Li Xie ◽  
Li Zi Zhang
Keyword(s):  
Electricity Market ◽  
Influence Factors ◽  
Forecast Model ◽  
Electric Power System ◽  
Electricity Price ◽  
Statistical Characteristics ◽  
Support Vector ◽  
Learning Technology ◽  
Feature Extraction Method ◽  
Price Forecast

There is a general consensus that the movement of electricity price is crucial for electricity market. As a practical tool to estimate the future prices, electricity price forecast is of great importance and use for the operations of market participants. So a hybrid forecast model is proposed in this paper that integrates independent component analysis (ICA) with least squares support vector machines (LS-SVM). First, a novel feature extraction method of price influence factors is proposed based on ICA, which aims at mining the latent source-features by using the higher-ordered statistical characteristics. After that, nonlinear regression modeling of electricity price and its extracted features is accomplished by LS-SVM with more efficient training and forecasting. Finally, Californian market data are employed to test the proposed approach.

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