Vertical separation of generation from electricity retailing has often been required as a condition of electricity market liberalisation. A well-developed and liquid contracts market is similarly suggested as necessary to manage the resulting wholesale market risks, which risks are further exacerbated by competition. Such contracts markets are rare, however, and increasingly evidence is emergin...

In open electricity market, electricity purchasers will trade in two different ways of marketing. Contract and power auction market, a typical decisionmaking is how to determine purchasing proportion of two markets to reduce purchase expenses and avoid risks. Based on chance-constrained programming, a new purchase decision-making optimization model with stochastic constraint of Distribution Com...

In this paper, we analyze Nash equilibria between electricity producers selling their production on an electricity market and buying CO2 emission allowances on an auction carbon market. The producers’ strategies integrate the coupling of the two markets via the cost functions of the electricity production. We set out a clear Nash equilibrium on the power market that can be used to compute equil...

This paper argues that the market rules governing the operation of a re-structured electricity market in combination with its market structure can have a substantial impact on behavior of marketclearing prices. Using evidence on the design of electricity markets in England and Wales, Norway, the state of Victoria in Australia and New Zealand, this paper illustrates that market structure and mar...

Market clearing models based on Linear Programming are being adopted in a number of electricity markets in different countries, with New Zealand and Australia being among the pioneers in this respect. This represents an exciting development for OR, worldwide, not only because these models are controlling a sector of vital national importance, but because large sums of money are being traded, vi...

This paper examines the effects of imperfect competition in unregulated electricity markets from a general equilibrium perspective, and demonstrates that horizontal market power can explain both the large peak-period price spikes observed recently in California and elsewhere, and the marked reduction in additions to capacity that have also occurred during the transition to competitive markets.

This paper presents several techniques for recovering cost function estimates for electricity generation from a model of optimal bidding behavior in a competitive electricity market. Two techniques are developed based on different models of the price-setting process in a competitive electricity market. The first assumes that the firm chooses the price that maximizes its realized profits given t...

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...

An important goal of China’s electric power system reform is to create a double-side day-ahead wholesale electricity market in the future, where the suppliers (represented by GenCOs) and demanders (represented by DisCOs) compete simultaneously with each other in one market. Therefore, modeling and simulating the dynamic bidding process and the equilibrium in the double-side day-ahead electricit...

This paper presents a set of policy recommendations for the market design of a future European electricity system characterized by a dominant share of intermittent renewable energy supply (RES), in line with the stated targets of European governments. We discuss the market failures that need to be addressed to accommodate RES in liberalized electricity markets, review the evolution of the EU’s ...