Volatility of Unit Commitment in Competitive Electricity Markets 1
نویسنده
چکیده
We examine the effects of competition and decentralized ownership on resource scheduling. We show that centralized scheduling of multi-owned resources under imperfect information m y face dificulties that do not arise when resources are centrally owned. We pelfomz a simulation case study using a Lagrangian relaxation-based unit commitment algorithm modified to simulate proposed second-price pool auction procedures. This algorithm is based on the Hydro-Thermal Optimization (HTO) program used in short-temz resource scheduling at PG&E. W e demonstrate both the volatility of simulation outcomes for resources not base loaded, and the especially negative consequences of volatility for marginal resources (i.e., resources that frequently determine system marginal costs). Specifically, we show that variations in near optimal unit commitments that have negligible effect on total costs could have significant impact on the profitability of individual resources. These results raise serious question regarding the feasibility of proper mechanisms to oversee the efficiency and equity of a mandatory centrally dispatched pool.
منابع مشابه
Stochastic Electric Power Generation Unit Commitment in Deregulated Power Market Environment
Utilities participating in deregulated markets observe increasing uncertainty in load (i.e., demand for electric power) and prices for fuel and electricity on spot and contract markets. This study proposes a new formulation of the unit commitment problem of electric power generators in a restructured electricity market. Under these conditions, an electric power generation company will have the ...
متن کاملVolatility of Unit Commitment in Competitive Electricity Markets
We examine the effects of competition and decentralized ownership on resource scheduling. We show that centralized scheduling of multi-owned resources under imperfect information may face difficulties that do not arise when resources are centrally owned. We perform a simulation case study using a Lagrangian relaxation-based unit commitment algorithm modified to simulate proposed second-price po...
متن کاملElectricity market price volatility: The case of Ontario
Price volatility analysis has been reported in the literature for most competitive electricity markets around the world. However, no studies have been published yet that quantify price volatility in the Ontario electricity market, which is the focus of the present paper. In this paper, a comparative volatility analysis is conducted for the Ontario market and its neighboring electricity markets....
متن کاملExperimental Tests of Competitive Markets for Electric Power
Testing the performance of electricity markets using POWERWEB has already shown that relatively inexperienced players can identify and exploit market power in load pockets. When transmission constraints are not binding, however, auctions with six players have been shown to be efficient. There is evidence from operating electricity markets that prices can be driven above competitive levels when ...
متن کامل