The assessment of capacity credits for wind energy and the value interpretation is reviewed critically. It is shown that the electricity market values the contribution to system reliability with market prices in a more precise way. This requires that markets for ancillary services exist and are based on price spike incentives given by the regulator. Price signals sent out by markets to investor...

In this article, we use a generalized system of differential equations fractional-order to incorporate memory into an electricity market model. By using idea, essential information from the past, such as behavior participants, namely, suppliers and consumers, can be used have impact on future decisions. We construct dynamical model, study its solutions, provide closed formulas solutions. Finall...

Regulatory reform in the Nordic electricity-supply markets has resulted in a single integrated Nordic electricity market. This paper performs an econometric study of market power in the spot market of Nord Pool, the joint Nordic power exchange. I use a dynamic extension of the Bresnahan-Lau model, and weekly data for the period from 1996 through April 1999. To my knowledge, this is the first st...

Two basic market designs are used for the trading of electricity in meshed electricity networks with transmission constraints. Analytical results show that, in two-node networks, a market design integrating transmission and energy markets reduces the ability of electricity generators to exercise market power, relative to a design with separated markets for transmission and energy designs. In mu...

Energy markets are systems for effecting the purchase and sale of electricity using supply and demand to set the price. A typical energy market involves a wholesale market for electricity generation, when competing generators offer their electricity output to retailers, and a retail market for electricity retailing, when end-use customers choose their supplier from competing electricity retaile...

With the ongoing deployment of smart grids, price-responsive demand is playing an increasingly important role in the paradigm shifting of electricity markets. Taking a multi-agent system modeling approach, this paper presents a conceptual platform for discovering dynamic pricing solutions that reflect the varying cost of electricity in the wholesale market as well as the level of demand partici...

The day-ahead electricity market is closely related to other commodity markets such as the fuel and emission markets and is increasingly playing a significant role in human life. Thus, in the electricity markets, accurate electricity price forecasting plays significant role for power producers and consumers. Although many studies developing and proposing highly accurate forecasting models exist...

In the electricity market, spark-spread options are increasingly used for hedging purposes and for valuing natural gas power plants. A spark-spread option gives the buyer the right but not the obligation to buy the price difference between electricity and natural gas adjusted for power plant efficiency. Pricing these options requires stochastic process models for the electricity price and the g...

The opinions expressed are those of the BlackRock Investment Instititute as of August 2011, and may change as subsequent conditions vary. } The emerging markets (EMs) have provided major investment opportunities over the last decade—whether in the equity, fixed income or currency spaces. } The global growth landscape and investment opportunity set have changed significantly in recent years, but...

The electric utility industry has undergone fundamental change in the last decade. Foremost of these changes have been numerous deregulation attempts. Producers and large consumers have built business models based upon large volume transactions, which lead to smooth production and volume discounting. The risks associated with using these traditional business models in deregulated markets are ma...