Electricity market designs that decentralize decision making for participants can lead to inefficiencies in the presence of nonconvexity or missing markets. This has been shown in the case of unit-commitment problems that can make a decentralized market equilibrium less efficient than a centrally-planned solution. Less attention has been focused on systems with large amounts of hydro-electric g...

The paper focuses on the quantitative analysis of Israeli Government's targets of 10% renewable energy penetration by 2020 and determining the desired methodology (models) for assessing the effects on the electricity market, addressing the fact that Israel is an electricity island. The main objective is to determine the influence of achieving the Government's goals for renewable energy penetrat...

A primary aim of deregulation is to reduce the customer cost of electricity. In this paper, we examine the degree of success in reaching that goal using a variety of methods. We examine rates for each of four customer classes; for regulated, deregulated and publicly owned utilities; and for three definitions of deregulation. We control for a variety of factors which may independently affect dif...

This paper develops a method for nodal pricing and market clearing mechanism considering reliability of the system. The effects of components reliability on electricity price, market participants’ profit and system social welfare is considered. This paper considers reliability both for evaluation of market participant’s optimality as well as for fair pricing and market clearing mechanism. To ac...

It is very important to forecast electricity price in a deregulated electricity market for choosing the bidding strategy, and it is the most important signal for other players. It engulfs information for both customers and producers in order to maximize their profit. Thus, choosing the best method of price forecasting is a crucial task to have the most accurate forecast. In this paper the price...

In an unregulated electricity generation market, the capacity of transmission lines will determine the degree to which generators in different locations compete with one another. We show, however, that there may be no relationship between the effect of a transmission line in spurring competition and the actual electricity that flows on the line in equilibrium. We also demonstrate that limited 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 this paper the problem of modeling electricity price dynamics in deregulated energy markets is studied. Since the nature of customers' energy consumption, market participants' strategic behavior and the power system reliability indices are stochastic processes, the electricity price model will be stochastic as well. In our analysis the price of electricity is modeled based on the customers' ...