scholarly journals Assessment Of Market Clearing Price And Social Welfare In A Competitive Electricity Market

2013 ◽  
pp. 74-82
Author(s):  
Prasanta Kumar Pany ◽  
Sakti Prasad Ghoshal
Keyword(s):  
Power Systems ◽  
Social Welfare ◽  
Electricity Market ◽  
Load Level ◽  
Operating Conditions ◽  
Energy Prices ◽  
Market Clearing ◽  
Transmission Investment ◽  
Number Of Factors ◽  
Market Clearing Price

In an open-access environment, transmission constraints can result in different energy prices throughout the network. These prices are dependent on a number of factors such as the system load level, generating unit bid, demand unit bid, network topology and security limits imposed on the transmission network due to thermal, voltage and stability considerations. Computing these energy prices at all buses in large networks under given system operating conditions can be time consuming. This paper describes some simple methodology based on the computer programs to calculate saving , worth of transmission transaction, market clearing price, social welfare, transaction cost, locational marginal pricing, transmission capacity cost at selected zones for a given period. These information for energy prices can be used not only to improve the efficient usage of power grid but also to design a reasonable pricing structure of power systems or to provide economic signals for generation or transmission investment.

scholarly journals Generation adequacy of electric power systems in market price setting

2019 ◽  
Vol 114 ◽  
pp. 03006
Author(s):  
Natalia Aizenberg ◽  
Sergey Perzhabinsky
Keyword(s):  
Power Systems ◽  
Social Welfare ◽  
Electric Power ◽  
Transmission Lines ◽  
Electricity Market ◽  
Market Price ◽  
Consumer Surplus ◽  
Electric Power Systems ◽  
Electric Power System ◽  
Electricity Shortage

We propose the new model of generation adequacy optimization. Optimization criterion is a maximum of social welfare. Social welfare consists of profits of generating companies, consumer surplus, costs for development and servicing of electrical grids. In the article we present a review of existed methods of adequacy level management in liberalized electric power systems. Optimization of adequacy level is based on analysis of variants of development of the electric power system. For adequacy analysis of the variants of development we multiple estimate the electricity shortage in random hours of the system work. Analysis of the system work in every random hour is realized in two stages. At first we define values of equilibrium electricity demand in every system node and equilibrium price of electricity according to Cournot model. We consider only electricity market in the model. At the next stage we simulate failures of power generating equipment and transmission lines. The electricity shortage in a current hour is estimated on the second stage. After a whole cycle of analysis, we compute reliability indexes and profits of generating companies. Profits of generating companies are depended on the reliability of the electricity supply. The simulations of random values are based on Monte Carlo method.

scholarly journals An Integration Mechanism between Demand and Supply Side Management of Electricity Markets

Energies ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 3314 ◽  
Author(s):  
Zixu Liu ◽  
Xiaojun Zeng ◽  
Fanlin Meng
Keyword(s):  
Electricity Market ◽  
Dynamic Pricing ◽  
Supply And Demand ◽  
Coordination Mechanism ◽  
Supply Side ◽  
Market Demand ◽  
Demand Side ◽  
Market Clearing ◽  
Demand And Supply ◽  
Market Clearing Price

One of the main challenges in the emerging smart grid is to jointly consider the demand and supply, which is also reflected in the wholesale market (supply side) and the retail market (demand side). When integrating the demand and supply side into one framework, the mechanism for determining the market clearing price has been changed. This is due to the demand variations in the demand side in response to the market clearing price and the change of generation costs in the supply side from the demand variation. In order to find the best balance between the supply and demand under the demand response management scheme, this paper proposes a new integrated supply and demand coordination mechanism for the electricity market and smart pricing methods for generator and retailers. Another important contribution of this paper is to develop an efficient algorithm to find the match equilibrium between the demand and supply sides in the new proposed mechanism. Experimental results demonstrate that the new mechanism can effectively handle unpredictable demand under dynamic retail pricing and support the ISO to dispatch the generation economically. It can also help in achieving the goals of dynamic pricing such as maximizing the profits for retailers.

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