The intermittent nature of the renewable energies increases the operation costs of conventional generators. As the share of energy supplied by renewable sources increases, these costs also increase. In this paper, we quantify these costs by developing a market clearing price of energy in the presence of renewable energy and congestion constraints. We consider an electricity market where generat...

This paper analyzes the pro-competitive effects of financial long-term contracts in oligopolistic electricity markets. This is done in a model that incorporates the main features of the industry: non-storable production, time-varying price-elastic demand, and sequential investment and production decisions. The paper considers contracts for difference that have as reference price the average spo...

in trading electrical energy in deregulated power systems, violation of operation constraints such as transmission lines flow limits is possible. these conditions have been called “congestion”. one of the most important responsibility of independent system operator (iso) is congestion management in a manner that all the system equipments be operated in their nominal ranges. in this paper, usi...

a medium scale structural macroeconometric model is constructed to investigate the effects of energy price liberalization on the main macroeconomic variables. the analysis is conducted under 3 different scenarios of increasing the price of energy sources to the level prevailed in the countries of the persian gulf region. these 3 scenarios are a sudden increase, a gradual increase within a 5 yea...

The smart grid is the next generation bidirectional modern grid. Energy users’ are keen on reducing their bill and energy suppliers are also keen on reducing their industrial cost. Our demand response model would benefit them both. We have tested our model with the UK based traditional price value using a real-time basis. Energy users significantly reduced their bill and energy suppliers reduce...

This paper studies transmission of international energy price shocks to various sectors in the Australian stock market. We take the multivariate generalized autoregressive conditional heteroscedasticity (MGARCH) approach to modeling volatility and gather evidence that energy price shocks transmit to the price indices of various sectors classified by the global industry classification standard (...

The present paper analyzes propagation of shocks to food and energy prices in 46 countries with data from the period 1999-2010. The empirical evidence suggests that in only one of the countries considered, a shock to the price of either energy or food shows no propagation to the prices of the goods and services included in the core inflation measure. In general, the propagation effect of food p...