Search results for "electricity market"
showing 10 items of 49 documents
Optimal pricing strategies in real-time electricity pricing environments: An Italian case study
2015
The energy market has changed radically over the last decade, mainly due to an increased penetration of renewable energies. Now the end users have directly access to the energy market and can actively take part to the electricity market. Electricity customers can indeed modify their behavior through Demand Response (DR), namely by means of pricing strategies that support a change in the end-users habits. This can be accomplished through a 'loads aggregator', a third party that collects the requests and signals for Active Demand-based services coming from the markets and the different power system participants. This paper describes a new framework able to optimally select the real-time prici…
An algorithm for simulating end-user behaviour in a real time pricing market
2015
The energy market has changed radically over the last decade, mainly due to an increased penetration of renewable energies. Now the end users have directly access to the energy market and can actively take part to the electricity market. Electricity customers can indeed modify their behavior through Demand Response, namely by means of pricing strategies that support a change in the end-users habits. This can be accomplished through a 'loads aggregator', a third party that collects the requests and signals for Active Demand-based services coming from the markets and the different actors of energy market. This paper describes a simulation framework to generate the simulated optimal behavior o…
EU transition in power sector: How RES affects the design and operations of transmission power systems
2019
In the past, much of Europe's electricity grid network has been designed in consideration of the locations of conventional generation plants. However, a large share of today's renewables production – notably variable wind and solar – does not correspond to this grid architecture. Interconnectors, in addition to internal infrastructure, are key to creating new electricity corridors to connect areas of surplus to areas of scarcity. In this context, in 2014 the European Council, in recognizing that a fundamental role of transmission infrastructure is to enable the integration of areas of high renewable energy potential with main consumption areas, endorsed the proposal by the European Commissi…
CORRELATIONS AMONG FORWARD RETURNS IN THE NORDIC ELECTRICITY MARKET
2009
I analyze empirical correlations of electricity forward returns from the perspective of a random field model that specifies the correlations in terms of the temporal separation between forward maturities. It turns out that temporal separation cannot fully account for the empirical forward return correlations. Specifically, the relation between correlations and temporal separation does not seem to be invariant across segments of the electricity forward market or trading periods.
A Novel Operating Strategy for Customer-Side Energy Storages in Presence of Dynamic Electricity Prices
2015
In the wholesale energy market, electricity prices are determined by the balance between supply and demand. Normally, customers are not exposed to these variations but pay a constant electricity price. In an attempt to reduce demand peaks, several utilities are moving from a conventional fixed-rate pricing scheme to a new market-based model, based on time-of-use or real-time pricing, able to closely reflect the wholesale energy price. Electricity customers can thus take profit from the installation of storage systems, shifting their energy consumption from on-peak to off-peak periods. This paper presents a novel charging strategy to manage customer storage systems in presence of hourly elec…
Expectations and forward risk premium in the Spanish deregulated power market
2010
Abstract Deregulation in energy markets has entailed important changes in the way agents conduct business. Price risk arises as a result of fluctuations in the future price of electricity and agents assume long or short positions in the forward and spot markets to hedge their exposure to price risk. The presence of forward risk premium in prices is evidence of the fact that agents act in the market according to risk considerations. This work aims to analyse the information content of the difference between the forward and spot prices (the so-called forward premium) regarding the agents’ decisions. We find that the sign and magnitude of the ex post forward premium depend on the unexpected va…
A wholesale electricity market framework with bilateral trading
2011
An agent-based simulation model for a hybrid power market structure is presented. A bilateral transaction mechanism is combined with a uniform-pricing auction settlement in order to isolate the impact of medium-term bilateral contracts on market power and spot prices in a competitive wholesale market setting. First we describe the negotiation method for bilateral trading of energy and then introduce a new approach for bidding in the DA market based on the load duration curve. We find that, despite the conventional concerns, the foreclosure ef- fect produced by the bilateral agreement between a generation and a retail business will not necessarily lead to higher prices, and will be manifeste…
Is more competition better? Retail electricity prices and switching rates in the European Union.
2022
The European Union (EU) promotes the liberalization of retail electricity markets to achieve lower prices, diversified offers, greater customer participation, and sustainable consumption behaviours. While retail competition has been a reality in most EU member states, most studies find that retail competition is suitable for large customers, but the evidence on small customers is inconclusive. We analyze data on electricity prices and switching rates in 27 EU member states and the UK from 2000 to 2019. We find that retail competition is associated with lower prices and that the effect of full liberalization is greater than that of partial liberalization.
EFFECTS OF THE PENETRATION OF WIND POWER IN THE BRAZILIAN ELECTRICITY MARKET
2016
Climate variability has been the main driver for renewables in the Brazilian electricity market. This article analyzes the vulnerabilities of the dependence on hydropower in renewable energy production due to climate variation, as well as wind power penetration in Brazil, given a set of wind industry policies. Despite Brazilian renewable energy increase, the study shows the impact in energy supply in north region, due to the lack of transmission infrastructure. In Brazil, the potential trade-offs between renewables growth, and transmission infrastructure inconsistencies in terms of policy implementation are not yet well analyzed. Simulation results show the potential conflicts between energ…
Alternative Energy Policy for Mitigating the Asynchrony of the Wind-Power Industry’s Supply Chain in Brazil
2018
High dependency on hydroelectricity has revealed drawbacks in the security of power supplies as a consequence of the climate variability in South America. Under these conditions, Brazil is starting to consider alternative renewable sources for energy production, seeking to avoid periods of scarcity while also promoting clean technologies in its electricity market. Since 2004, wind power has shown a significant rise in terms of installed capacity in this country. Despite increases in wind-power units, Brazil suffers from delays in setting up its transmission infrastructure, which affects the performance of the wind-power supply chain. This chapter presents a simulation model that helps asses…