The electricity market is a very peculiar market due to the large variety of phenomena that can affect the spot price. However, this market still shows many typical features of other speculative (commodity) markets like, for instance, data clustering and mean reversion. We apply the diffusion entropy analysis (DEA) to the Nordic spot electricity market (Nord Pool). We study the waiting time sta...

This paper presents a new framework for the day-ahead reactive power market based on the uniform auction price. Voltage stability and security have been considered in the proposed framework. Total Payment Function (TPF) is suggested as the objective function of the Optimal Power Flow (OPF) used to clear the reactive power market. Overload, voltage drop and voltage stability margin (VSM) are inc...

A variety of energy resources has been identified as being flexible in their electric energy consumption or generation. This energetic flexibility can be used for various purposes such as minimizing energy procurement costs or providing ancillary services to power grids. To fully leverage the flexibility available from distributed small-scale resources, their flexibility must be quantified and ...

Demand response (DR) has many beneficiaries in the electricity market. There are independent players who are interested in DR, which include: transmission system owners, distributors, retailers, and aggregators. In this paper DR is introduced as a tradable commodity that can be exchanged between DR buyers and sellers in a pool-based market which is called demand response exchange (DRX). DRX ope...

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 ...

This draft includes 9 new chapters on Extensive-Form Games, Monopoly/Cournot, Market Institutions and Power, Collusion, Lemons Markets, Asset Markets and Bubbles, Multi-Unit Auctions, Trust and Reciprocity, Voting (unfinished), and Common Pool Resources. A discussion of the Guessing Game has been added to Chapter 3. The more advanced chapters on Bayes’ Rule and Information Cascades have been mo...

The Revised Electricity Trading Arrangements (RETA), initiated by the Office of Electricity Regulation (OFFER) and Department of Trade and Industry (DTI), proposes that the England & Wales Electricity Pool be replaced by bilateral trading (“the bilateral model”). This will allow direct contracting between counterparties, paying generators what they bid, and introducing an optional balancing mar...

In restructured electricity markets, an effective transmission pricing method is required to address transmission issues and to generate correct economic signals. Transmission line constraints can result in variations in energy prices throughout the network. These prices depend on generator bids, load levels and transmission network limitations. A congestion charge is incurred when the system i...

Congestion management (CM) is one of the most important and challenging tasks of the Independent System Operator (ISO) in the deregulated environment. Recently, Sen Transformer (ST) has emerged as an important power flow control device which has the capability of power flow control over a wide range like UPFC. This device with a conventional transformer and tap changers has the capability of bi...