The purpose of this article is to investigate the impact that the introduction of a carbon price signal will have on wholesale electricity prices, carbon-pass-through rates and retail electricity rates in the states making up the Australian National Electricity Market (NEM). In order to assess this, we employ an agent based model of the NEM called the ANEM model which contains many of the salie...

The idea that large-scale generating units will operate at marginal cost when given the ability to offer their power for sale in a uniform price auction is at best wishful thinking. In fact, both real and experimental data show that the more uncertainty a supplier faces (e.g., load uncertainty, uncertainty of other suppliers, etc.), the more they will hedge their profits through higher than mar...

In this paper, a new method to review the role of wind units as an energy-producer in the scheduling problem of unit commitment is presented. Today, renewable energy sources due to lack of environmental pollution, absence of dependence on fossil fuels, and consequently a very low marginal cost, have been receiving considerable attention in power system. But these sources are associated with unc...

D development of an innovative product there is often considerable uncertainty about component production cost, and it is of interest for both the manufacturer and the supplier to engage in a collaborative effort to reduce this uncertainty and lower the expected cost. Despite the obvious benefits this brings, the supplier may be reluctant to collaborate as he fears revealing his proprietary cos...

A fundamental role of financial markets is to gather information on firms’ investment opportunities, and so help guide investment decisions in the real sector. In this paper we study the incentives for information production when prices perform this allocational role. We argue that firms’ overinvestment is sometimes necessary to induce speculators in financial markets to produce information. If...

I propose a market based on a single load-following product in which each supplier bids to serve its desired share of the Colombia regulated load. Thus, a supplier that wins a 10% share at auction has an obligation to serve 10% of the actual regulated load in every hour of the commitment period. The supplier is paid the MOR clearing price for every MWh of energy supplied. Deviations between the...