Impact of a coal power plant closure on a multi-region wholesale electricity market

Masoumzadeh, Amin; Nekouei, Ehsan; Alpcan, Tansu

doi:10.1109/isgteurope.2017.8260183

Cited by 4 publications

(1 citation statement)

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“…In our primary case, the NEM market is simulated based on the available data in 2016. In our secondary case, the Hazelwood coal power plant in VIC is closed down [29], the gas price in total NEM is increased, and the Basslink transmission line, between VIC and TAS, which was under maintenance in 2016, is restarted in comparison to the primary case. Table I compares the simulated wholesale electricity prices in five regions of NEM in the primary and secondary cases.…”

Section: A Impact Of Generation Capacity Gas Price and Transmission Line On Average Price And Price Volatility In Nemmentioning

confidence: 99%

Wind Versus Storage Allocation for Price Management in Wholesale Electricity Markets

Masoumzadeh¹,

Nekouei

Alpcan

2020

IEEE Trans. Sustain. Energy

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This paper investigates the impacts of installing regulated wind and electricity storage, by a state-owned (government) entity, on average price and price volatility in electricity markets. A stochastic bi-level optimization model is developed which computes the optimal sizing of new wind and battery capacities by minimizing a weighted sum of the average market price and price volatility. A fixed budget is allocated on wind and battery capacities in the upper level problem. The operation of strategic/regulated generation, storage and transmission players is simulated in the lower level problem using a stochastic (Bayesian) Cournot-based game model. The Australia's National Electricity Market (NEM), which is experiencing occasional price peaks, is considered as the case study. Our simulation results quantitatively illustrate that the regulated wind is more efficient than storage in reducing the average price, while the regulated storage more effectively reduces the price volatility. According to our numerical results, the storage-only solution reduces the average price at most by 9.4%, and the wind-only solution reduces the square root of price volatility at most by 39.3%. However, an optimal mixture of wind and storage can reduce the mean price by 17.6% and the square root of price volatility by 48.1%. It also increases the consumer surplus by 1.52%. Moreover, the optimal mixture of wind and storage is a profitable solution unlike the storage-only solution.

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Section: A Impact Of Generation Capacity Gas Price and Transmission Line On Average Price And Price Volatility In Nemmentioning

confidence: 99%