Peak-load Pricing for Transmission in a Deregulated Industry PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Peak-load Pricing for Transmission in a Deregulated Industry PDF full book. Access full book title Peak-load Pricing for Transmission in a Deregulated Industry by Benoît Lecinq. Download full books in PDF and EPUB format.
Author: Benoît Lecinq
Publisher:
ISBN:
Category :
Languages : en
Pages : 11
Get Book Here
Book Description
Introduction: The purpose of this paper is to study notions of optimal transmission pricing for interconnected power systems. The existing proposals on short-run-marginal-cost (SRMC)-based spot prices reflect the physical use of the lines. This approach is in contrast to the wide variety of approximate methods, such as contract path, which cannot be related to the actual system conditions. However, SRMC approaches are often criticized for not providing any incentives for network expansion. In the context of a deregulated industry, the unbundling of generation and transmission services precisely requires pricing mechanisms that give provision for the former coordination of generation and transmission planning performed by vertically integrated utilities. This should guide the choice of decision makers towards long run approaches. We provide here a brief summary of the theoretical research under way at MIT on optimal pricing mechanisms in a deregulated industry. In an attempt to highlight the similarities and differences between short run and long run marginal cost pricing (SRMC and LRMC), we first briefly review the theory of optimal spot prices, and, next, formulate the corresponding long run approach. Our proposed approach yields a single part tariff pricing for transmission services, i.e. a mechanism of access rates that does not decompose into a fixed entry fee and a usage-dependent component. A three-bus example illustrates numerically the concept of optimal transmission network, where SRMC is equal to LRMC. Finally, our theory of optimal access rates is judged from the regulator's viewpoint: what is the suitable expansion policy? If capacity rights are created and allocated, should the holders of these rights be compensated by the system operator?
Author: Benoît Lecinq
Publisher:
ISBN:
Category :
Languages : en
Pages : 11
Get Book Here
Book Description
Introduction: The purpose of this paper is to study notions of optimal transmission pricing for interconnected power systems. The existing proposals on short-run-marginal-cost (SRMC)-based spot prices reflect the physical use of the lines. This approach is in contrast to the wide variety of approximate methods, such as contract path, which cannot be related to the actual system conditions. However, SRMC approaches are often criticized for not providing any incentives for network expansion. In the context of a deregulated industry, the unbundling of generation and transmission services precisely requires pricing mechanisms that give provision for the former coordination of generation and transmission planning performed by vertically integrated utilities. This should guide the choice of decision makers towards long run approaches. We provide here a brief summary of the theoretical research under way at MIT on optimal pricing mechanisms in a deregulated industry. In an attempt to highlight the similarities and differences between short run and long run marginal cost pricing (SRMC and LRMC), we first briefly review the theory of optimal spot prices, and, next, formulate the corresponding long run approach. Our proposed approach yields a single part tariff pricing for transmission services, i.e. a mechanism of access rates that does not decompose into a fixed entry fee and a usage-dependent component. A three-bus example illustrates numerically the concept of optimal transmission network, where SRMC is equal to LRMC. Finally, our theory of optimal access rates is judged from the regulator's viewpoint: what is the suitable expansion policy? If capacity rights are created and allocated, should the holders of these rights be compensated by the system operator?
Author: Benoît Lecinq
Publisher:
ISBN:
Category :
Languages : en
Pages : 161
Get Book Here
Book Description
Author: Benoît Lecinq
Publisher:
ISBN:
Category :
Languages : en
Pages : 35
Get Book Here
Book Description
This paper is concerned with the problem of transmission network access tariffs in a deregulated electric power industry. It provides a basic theoretical formulation of a peak-load pricing for transmission access charge. The cost of investment is explicitly taken into account in the objective function, to model the trade-off between network expansion and use of inexpensive generation. This approach introduces incentives for network expansion at the locations most beneficial to the customers. In a well-defined open access environment, characterized by a single transmission service to all, this approach could become useful for setting transmission reservation right tariffs over various time horizons. Such tariffs are performance-based, in the sense that the transmission paths most useful to the economic transactions receive the highest compensation. A possible real-time use of this approach by an Independent System Operator (ISO) is discussed. Particular concerns of dealing with the lumpiness of investment issue and the computational complexity are addressed.
Author: James M. Griffin
Publisher: University of Chicago Press
ISBN: 0226308588
Category : Business & Economics
Languages : en
Pages : 453
Get Book Here
Book Description
The electricity market has experienced enormous setbacks in delivering on the promise of deregulation. In theory, deregulating the electricity market would increase the efficiency of the industry by producing electricity at lower costs and passing those cost savings on to customers. As Electricity Deregulation shows, successful deregulation is possible, although it is by no means a hands-off process—in fact, it requires a substantial amount of design and regulatory oversight. This collection brings together leading experts from academia, government, and big business to discuss the lessons learned from experiences such as California's market meltdown as well as the ill-conceived policy choices that contributed to those failures. More importantly, the essays that comprise Electricity Deregulation offer a number of innovative prescriptions for the successful design of deregulated electricity markets. Written with economists and professionals associated with each of the network industries in mind, this comprehensive volume provides a timely and astute deliberation on the many risks and rewards of electricity deregulation.
Author: Marija Ilic
Publisher: Springer Science & Business Media
ISBN: 1475728832
Category : Technology & Engineering
Languages : en
Pages : 559
Get Book Here
Book Description
The writing of this book was largely motivated by the ongoing unprecedented world-wide restructuring of the power industry. This move away from the traditional monopolies and toward greater competition, in the form of increased numbers of independent power producers and an unbundling of the main services that were until now provided by the utilities, has been building up for over a decade. This change was driven by the large disparities in electricity tariffs across regions, by technological developments that make it possible for small producers to compete with large ones, and by a widely held belief that competition will be beneficial in a broad sense. All of this together with the political will to push through the necessary legislative reforms has created a climate conducive to restructuring in the electric power industry. Consequently, since the beginning of this decade dramatic changes have taken place in an ever-increasing list of nations, from the pioneering moves in the United Kingdom, Chile and Scandinavia, to today's highly fluid power industry throughout North and South America, as well as in the European Community. The drive to restructure and take advantage of the potential economic benefits has, in our view, forced the industry to take actions and make choices at a hurried pace, without the usual deliberation and thorough analysis of possible implications. We must admit that to speak of "the industry" at this juncture is perhaps disingenuous, even misleading.
Author: Michael A. Einhorn
Publisher: Springer Science & Business Media
ISBN: 9780792396437
Category : Business & Economics
Languages : en
Pages : 308
Get Book Here
Book Description
The electric utility industry and its stakeholders in the. United States appear to be at a critical juncture in time. Powerful forces of global proportions are propelling the industry instinctively and in a secular fashion towards restructuring. That the industry will change is a fait accomplii. The nature and timing of the change is still a matter of intense debate, however. Because of the evolution of the industry into its present-day form, i.e. regulated local monopolies in their designated franchise service territories, the relative roles and expectations of various institutions would have to change to conform to the new state in the future. In either encouraging, or allowing this change to happen, society is essentially saying that future societal welfare would be better served by the changed structure contemplated. What that assumption translates into in more direct terms is that creation of future wealth would be better accomplished through redistribution of wealth today. Thoughtful individuals recognize the enormous responsibility placed upon the various entities empowered with jurisdiction over the timing and nature of the structural change. They are trying hard to bring analytical rigor to bear on the debate. One very critical element of this debate on restructuring is the issue of the treatment of transmission. The issue has been variously labeled transmission access, or pricing. Volumes have been written and spoken on this topic.
Author: William J. Baumol
Publisher: American Enterprise Institute Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 208
Get Book Here
Book Description
Stranded costs are those costs that electric utilities currently permitted to recover through their rates but whose recovery may be impeded or prevented by the advent of competition in the industry. Estimates of those costs run from the tens to the hundreds of billions of dollars. Should regulators permit utilities to recover stranded costs while they take steps to promote competition in the electric power industry? William J. Baumol and J. Gregory Sidak argue that on both efficiency and equity grounds the answer to that question should be yes. The authors show that a transmission price, the price for sending electricity over the transmission grid, can be determined in a manner that is compatible with economic efficiency and clearly neutral in its effects upon all competitors in electricity generation. A correctly constructed regime of transmission pricing may in fact achieve the efficiency and equity goals that justify the recovery of stranded costs.
Author: Georges Zaccour
Publisher: Springer Science & Business Media
ISBN: 1461557291
Category : Business & Economics
Languages : en
Pages : 353
Get Book Here
Book Description
Deregulation of Electric Utilities reviews the main issues relating to the changing environment in the utility industry. Topics covered in depth include compensation for stranded costs, efficiency gains, institutional design, pricing, economics of scale, and network externalities. In addition, this book assesses early experiences in electricity deregulation in continental Europe, New Zealand, North America, and the United Kingdom.
Author: Ozan Erdinc
Publisher: Butterworth-Heinemann
ISBN: 0081012098
Category : Technology & Engineering
Languages : en
Pages : 327
Get Book Here
Book Description
Optimization in Renewable Energy Systems: Recent Perspectives covers all major areas where optimization techniques have been applied to reduce uncertainty or improve results in renewable energy systems (RES). Production of power with RES is highly variable and unpredictable, leading to the need for optimization-based planning and operation in order to maximize economies while sustaining performance. This self-contained book begins with an introduction to optimization, then covers a wide range of applications in both large and small scale operations, including optimum operation of electric power systems with large penetration of RES, power forecasting, transmission system planning, and DG sizing and siting for distribution and end-user premises. This book is an excellent choice for energy engineers, researchers, system operators, system regulators, and graduate students. Provides chapters written by experts in the field Goes beyond forecasting to apply optimization techniques to a wide variety of renewable energy system issues, from large scale to relatively small scale systems Provides accompanying computer code for related chapters
Author: Ahmad Faruqui
Publisher: Springer Science & Business Media
ISBN: 1461545293
Category : Business & Economics
Languages : en
Pages : 463
Get Book Here
Book Description
Electricity markets are being deregulated or face new regulatory frameworks. In such changing markets, new pricing strategies will need to consider such factors as cost, value of service and pricing by objective. Pricing in Competitive Electricity Markets introduces a new family of pricing concepts, methodologies, models, tools and databases focused on market-based pricing. This book reviews important theoretical pricing issues as well as practical pricing applications for changing electricity markets.
