III " It began with hope and belief " To all people I love IV Acknowledgments I am heartily thankful to my supervisors, Dr. Hamidreza Zareipour and Dr. Tuan. Le, whose encouragement, guidance, and support throughout enabled me to develop an understanding of this subject. I have learned precious lessons from their personality, vision and professionalism. Finally, I'd like to dedicate this work t...

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 a competitive electricity market traditional demand side management options offering customers curtailable service at reduced rates are replaced by voluntary customer responses to electricity spot prices. In this new environment, customers wishing to ensure a fixed electricity price while taking advantage of their flexibility to curtail loads can do so by purchasing a forward electricity con...

In the restructured electricity industry, electricity pooling markets are an oligopoly with strategic producers possessing private information (private production cost function). We focus on pooling markets where aggregate demand is represented by a non-strategic agent. Inelasticity of demand is a main difficulty in electricity markets which can potentially result in market failure and high pri...

The price of electricity is far more volatile than that of other commodities normally noted for extreme volatility. Demand and supply are balanced on a knife-edge because electric power cannot be economically stored, end user demand is largely weather dependent, and the reliability of the grid is paramount. The possibility of extreme price movements increases the risk of trading in electricity ...

During the last two decades there has been an increase in using dynamic tariffs for billing household electricity consumption. This has questioned the suitability of traditional pricing schemes, such as two-part tariffs, since they contribute to create marked peak and offpeak demands. The aim of this paper is to assess if two-part tariffs are an efficient pricing scheme using Spanish household ...

We propose a mean-reverting model for the spot price dynamics of electricity which includes seasonality of the prices and spikes. The dynamics is a sum of non-Gaussian Ornstein-Uhlenbeck processes with jump processes giving the normal variations and spike behaviour of the prices. The amplitude and frequency of jumps may be seasonally dependent. The proposed dynamics ensures that spot prices are...

This review is motivated by our recognition that an adequate and reliable electricity supply is a critical element in economic growth. From a customer’s perspective, electricity has several distinct attributes: quality, reliability, time of use, consumption (kW h) volume, maximum demand (kW), and environmental impact. A differentiated product can be formed by packaging its non-price attributes ...

This paper proposes an approach to the intraday analysis of the dynamics of electricity prices. The growth optimal portfolio (GOP) is used as a reference unit in a continuous financial electricity price model. A diversified global portfolio in the form a market capitalisation weighted index approximates the GOP. The GOP, measured in units of electricity, is normalised and then modelled as a tim...

fixed feed-in tariff An offer by government or a utility to purchase electricity from renewables producers at a fixed price, regardless of the producers’ costs of production. green (renewables) certificate A certificate, provided by a regulator to renewables producers for specified units of their electricity output; can be traded to other electricity producers who need it to meet their obligati...