[PDF] Financial Arbitrage And Efficient Dispatch In Wholesale Electricity Markets eBook

Author : John E. Parsons
Publisher :
Page : 57 pages
File Size : 22,31 MB
Release : 2015
Category :
ISBN :

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Virtual bidding is a type of transaction introduced into wholesale electricity markets to improve competition and pricing. This paper analyzes the theory behind virtual bidding and describes circumstances under which it does not work as advertised. The case for virtual bidding is predicated on an oversimplified model of the multi-settlement market design. The complexity of the unit commitment and optimal power flow problems forces the actual market algorithms to make compromises with the theoretical model. These compromises create situations in which virtual bidders can profit without improving system performance. Indeed, in these situations, virtual bidding can add real costs to system operation. The paper illustrates this with a specific case study of virtual bidding in California, and with a matching numerical illustration. The paper explains the general nature of the problem with experiences in other regions and other situations. The fault with virtual bidding identified in this paper needs to be incorporated into any assessment of the costs and benefits of virtual bidding.

Author : Fereidoon Sioshansi
Publisher : Elsevier
Page : 625 pages
File Size : 28,46 MB
Release : 2011-10-10
Category : Technology & Engineering
ISBN : 0080557716

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After 2 decades, policymakers and regulators agree that electricity market reform, liberalization and privatization remains partly art. Moreover, the international experience suggests that in nearly all cases, initial market reform leads to unintended consequences or introduces new risks, which must be addressed in subsequent “reform of the reforms. Competitive Electricity Markets describes the evolution of the market reform process including a number of challenging issues such as infrastructure investment, resource adequacy, capacity and demand participation, market power, distributed generation, renewable energy and global climate change. Sequel to Electricity Market Reform: An International Perspective in the same series published in 2006 Contributions from renowned scholars and practitioners on significant electricity market design and implementation issues Covers timely topics on the evolution of electricity market liberalization worldwide

Author : Anthony Papavasiliou
Publisher : Cambridge University Press
Page : 389 pages
File Size : 31,95 MB
Release : 2024-05-31
Category : Science
ISBN : 1009416618

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Get up-to-speed with the fundamentals of how electricity markets are structured and operated with this comprehensive textbook, presenting coverage of key topics in electricity market design, including power system and power market operations, transmission, unit commitment, demand response, and risk management. It includes over 140 practical examples, inspired by real-industry applications, connecting key theoretical concepts to practical scenarios in electricity market design, and features over 100 coding-based examples and exercises, with selected solutions for readers. It further demonstrates how mathematical programming models are implemented in an industry setting. Requiring no experience in power systems or energy economics, this is the ideal introduction to electricity markets for senior undergraduate and graduate students in electrical engineering, economics, and operations research, and a robust introduction to the field for professionals in utilities, energy policy, and energy regulation. Accompanied online by datasets, AMPL code, supporting videos, and full solutions and lecture slides for instructors.

Author : René Aïd
Publisher : Springer
Page : 107 pages
File Size : 31,89 MB
Release : 2015-01-14
Category : Mathematics
ISBN : 3319083953

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Offering a concise but complete survey of the common features of the microstructure of electricity markets, this book describes the state of the art in the different proposed electricity price models for pricing derivatives and in the numerical methods used to price and hedge the most prominent derivatives in electricity markets, namely power plants and swings. The mathematical content of the book has intentionally been made light in order to concentrate on the main subject matter, avoiding fastidious computations. Wherever possible, the models are illustrated by diagrams. The book should allow prospective researchers in the field of electricity derivatives to focus on the actual difficulties associated with the subject. It should also offer a brief but exhaustive overview of the latest techniques used by financial engineers in energy utilities and energy trading desks.

Author : Glachant, Jean-Michel
Publisher : Edward Elgar Publishing
Page : 672 pages
File Size : 22,92 MB
Release : 2021-11-12
Category : Business & Economics
ISBN : 1788979958

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With twenty-two chapters written by leading international experts, this volume represents the most detailed and comprehensive Handbook on electricity markets ever published.

Author : Fereidoon Sioshansi
Publisher : Elsevier
Page : 687 pages
File Size : 13,29 MB
Release : 2006-04-13
Category : Technology & Engineering
ISBN : 0080462715

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Since the late 1980s, policy makers and regulators in a number of countries have liberalized, restructured or “deregulated their electric power sector, typically by introducing competition at the generation and retail level. These experiments have resulted in vastly different outcomes - some highly encouraging, others utterly disastrous. However, many countries continue along the same path for a variety of reasons. Electricity Market Reform examines the most important competitive electricity markets around the world and provides definitive answers as to why some markets have performed admirably, while others have utterly failed, often with dire financial and cost consequences. The lessons contained within are direct relevance to regulators, policy makers, the investment community, industry, academics and graduate students of electricity markets worldwide. Covers electicity market liberalization and deregulation on a worldwide scale Features expert contributions from key people within the electricity sector

Author : Michael A. Einhorn
Publisher : Springer Science & Business Media
Page : 286 pages
File Size : 42,14 MB
Release : 2012-12-06
Category : Business & Economics
ISBN : 9401113688

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Electric utilities throughout the world continue to face new challenges involving ownership, market structure, and regulation. There are three related issues at hand. First, should ownership be private or public? Second, what operations should be integrated and where is competition feasible? Third, where is regulation necessary and can it be made more efficient? This volume bears directly upon these concerns. The book contains two sections. The first six articles discuss the British electricity experiment that has privatized and disintegrated the nation's generation, transmission, and distribution companies, introduced market competition for power purchases, and implemented incentive regulation for monopolized transmission and distribution grids. The remaining articles focus on the theater in which significant microeconomic issues will continue to emerge, most immediately in the U.K. and U.S.A. -- the coordination and pricing of transmission.

Author : Petter L. Skantze
Publisher : Springer Science & Business Media
Page : 240 pages
File Size : 35,47 MB
Release : 2001-10-31
Category : Business & Economics
ISBN : 9780792375289

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The challenges facing participants in competitive electricity markets are staggering: high price volatility introduces significant financial risk into an industry accustomed to guaranteed rates of return, while illiquid forward markets prevent effective hedging strategies from being implemented. Valuation, Hedging and Speculation in Competitive Electricity Markets: A Fundamental Approach , examines the unique properties which separate electricity from other traded commodities, including the lack of economical storage, and the impact of a scarce transmission network. The authors trace the sources of uncertainties in the price of electricity to underlying physical and economic processes, and incorporate these into a bid-based model for electricity spot and forward prices. They also illustrate how insufficient market data can be circumvented by using a combination of price and load data in the marking- to-market process. The model is applied to three classes of problems central to the operation of any electric utility or power marketer; valuing generation assets, formulating dynamic hedging strategies for load serving obligations, and pricing transmission contracts and locational spread options. Emphasis is placed on the difference between trades which can be 'booked out' in the forward markets, and those which must be carried through to delivery. Lately, significant attention has been given to the role of regulators in mitigating excessive price levels in electricity markets. The authors conduct a quantitative analysis of the long-term effects of regulatory intervention through the use of price caps. By modeling the dynamic interplay between the observed price levels and the decision to invest in new generation assets, it is shown how such short term fixes can lead to long term deficits in the available generation capacity, and ultimately to market failures and blackouts.