This paper investigates three models to implement Tradable Green Certificates (TGC) system with aid of game theory approach. In particular, the competition between thermal and renewable power plants is formulated in three models: namely cooperative, Nash and Stackelberg game models. The price of TGC is assumed to be determined by the legislative body (government) which is fixed. Numerical examp...

Residential demand for electricity is estimated for China using a unique household level dataset. Household electricity demand is specified as a function of local electricity price, household income, and a number of social-economic variables at household level. We find that the residential demand for electricity responds rather sensitively to its own price in China, which implies that there is ...

There is a general consensus that the movement of electricity price is crucial for electricity market. The binary electricity price classification method is as an alternative to numerical electricity price forecasting due to high forecasting errors in various approaches. This paper proposes a binary classification of day-ahead electricity prices that could be realized using discrete cosine tran...

Accurate forecasting tools are essential in the operation of electric power systems, especially in deregulated electricity markets. Electricity price forecasting is necessary for all market participants to optimize their portfolios. In this paper we propose a hybrid method approach for short-term hourly electricity price forecasting. The paper combines statistical techniques for pre-processing ...

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....

This paper addresses quantity risk in the electricity market and explores several ways of managing such risk. The paper also addresses the hedging problem of a load-serving entity, which provides electricity service at a regulated price in electricity markets with price and quantity risk. Exploiting the correlation between consumption volume and spot price of electricity, an optimal zero-cost h...

This paper proposes an economic dispatch strategy for the electricity system with one generation company, multiple utility companies and multiple consumers, which participate in demand response to keep the electricity real-time balance. In the wholesale markets, multiple utility companies will commonly select a reliable agent to negotiate with the generation company on the wholesale price. It i...

Prior to the deregulation trend, electricity prices were highly regulated and were usually fairly predictable generators and wholesalers knew their production costs and revenues, and consumers knew their electricity costs. However, deregulation has caused electricity to become the most volatile of the commodities. Not only is the demand for electricity highly variable, but the inability to stor...

During periods of market stress, electricity prices can rise dramatically. Electricity retailers cannot pass these extreme prices on to customers because of retail price regulation. Improved prediction of these price spikes, therefore, is important for risk management. This paper builds a time-varying-probability Markov-switching model of Queensland electricity prices, aimed particularly at for...

We present an empirical analysis of restructured electricity prices. We study the distributional and temporal properties of the price process in a non-parametric framework, after which we parametrically model the price process using several common asset price specifications from the asset-pricing literature, as well as several less conventional models motivated by the peculiarities of electrici...