This paper analyses the evolution of electricity prices in deregulated market. I formulate a model that takes into account the spatial features of a network of a market. The model is applied to equilibrium electricity spot prices of the PJM market. An empirical analysis indicates that the problem of unobserved spatial correlation in the network can be modeled by the Spatial Error Model providin...

It is difficult to eliminate all market power in electricity markets and it is therefore frequently suggested that some market power should be tolerated: extra revenues contribute to fixed cost recovery, facilitate investment, and increase security of supply. This suggestion implicitly assumes all generation technologies benefit equally from market power. We assess a mixture of conventional and...

Models formulated as complementarity problems have been applied previously to assess the potential for market power in transmission-constrained electricity markets. Here, we use the complementarity approach to simulate the interaction of pollution permit markets with electricity markets, considering forward contracts and the operating reserve market. Because some power producers are relatively ...

Several regions of the U.S. have sought to restructure the electric power industry by separating the potentially competitive generation sector from the natural monopoly functions of electricity transmission and distribution. Under this restructuring scheme, a central authority, which we will refer to as the independent system operator (ISO), is given control over both the transmission system an...

The battle for electricity customers in an increasingly competitive and deregulated market environment is one of the challenges facing the electric power utilities of today. Customers expect a reliable and efficient supply of power from their utilities. One of the advantages that a distributed generator (DG) can provide to the electric utility and to customers is the possibility of improving th...

This paper develops a system dynamics model to analyze the impacts of different kinds of capacity payment as investment incentive mechanisms in Iranian electricity market. Since it is aimed that the incurred capital and operating costs of generation technologies be recovered in Iranian electricity pool, the noncompetitive capacity payment mechanism has been introduced for this purpose in order ...

Electricity price forecasting is becoming more important in everyday business of power utilities. Good forecasting models can increase effectiveness of producers and buyers playing roles in electricity market. Price is also a very important element in investment planning process. This paper presents a forecasting technique to model day-ahead spot price using well known ARIMA model to analyze an...

1 Background The Japanese government is conducting electricity system reform in stages and plans to complete this reform by 2020. Historically, all electricity related services in Japan have been overseen by regional monopolistic entities. After the reform is completed, both the wholesale and retail electricity markets will be perfectly competitive, as in most countries in the EU, and many stat...

reactive power management plays an essential role in the secure operation of the power system as an ancillary service. although in electricity markets, the particular attention is paid to active power, the reactive power also plays an important on total generation costs of electricity. on the other hand, as it is mainly confined to local consumption, to avoid market power and maintain the secur...

This paper presents a stochastic mixed-integer linear programming approach for solving the self-scheduling problem of a price-taker thermal and wind power producer taking part in a pool-based electricity market. Uncertainty on electricity price and wind power is considered through a set of scenarios. Numerical results from a case study are presented to illustrate the performance of the proposed...