Impact of Bilateral Contracts on Wholesale Electricity Markets: In a Case Where a Market Participant Has Dominant Position

Dagoumas, Athanasios

doi:10.3390/app9030382

Cited by 12 publications

(10 citation statements)

References 20 publications

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“…Long-term electricity trading is mostly based on bilateral contracts, whereas short-term trading is generally based on competitive auctions or pools. The latter represents over 75% of the total energy traded [22]. Short-term markets thus appear as the most relevant for the studies considered in this work given their competitive nature.…”

Section: B Optimizationmentioning

confidence: 99%

Dynamic Virtual Power Plant: A New Concept for Grid Integration of Renewable Energy Sources

Marinescu

Gomis‐Bellmunt

Dörfler³

et al. 2022

IEEE Access

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The concept of Virtual Power Plant (VPP) has arisen over a decade ago from the relatively low competitiveness of the back then emerging non-dispatchable RES. A set of smaller generators imitates the behavior of large synchronous generators. So far, static aspects such as generation or slow dynamics have been of interest, as it is the case for the zonal secondary frequency control scheme in Spain, which can be viewed as a VPP. However, considering dynamic aspects is of high importance, especially to further increase the current penetration level of Renewable Energy Sources (RES). Indeed, one should deal with the full participation of RES in grid ancillary services. This means not only to get some positive impact on grid voltage and frequency dynamics but to bring concepts which allow integrating RES to existing secondary regulation schemes on the same level as classic synchronous generators. For that, we propose here a new concept called Dynamic VPP (DVPP) which fully integrates the dynamic aspects at all levels: locally (for each RES generator), globally (for grid ancillary services and interaction with other close-by elements of the grid) and economically (for internal optimal dispatch and participation in electricity markets). A DVPP is a set of dispatchable and non-dispatchable RES along with a set of common control and operation procedures. The latter procedures include the choice of dispatchable and non-dispatchable RES constituting the DVPP, the control of DVPP generators for local objectives and participation of the DVPP as a single unit in ancillary services (especially in case of loss of natural resources -e.g., wind, sun -on a part of the DVPP), the limitation of the risk of adversely interaction with close-by elements and the feasibility in both current power systems scenarios and future ones with large share of RES. This new DVPP framework and approaches developed for its implementation allows ensuring optimal operation of a mixed portfolio of dispatchable and non-dispatchable RES generators for planning, participation to the markets and real-time control. For the control, all time-scale dynamics are considered to improve RES management (internal re-dispatch inside the DVPP to take advantage of dispatchable/nondispatchable nature of each RES and to optimally manage the lack of natural resources in some regions of the DVPP) and their participation to grid ancillary services. Concrete structures of DVPP as well as ways to address the other control and economical aspects will be shown. This new DVPP concept is now under development in the H2020 POSYTYF project (https://posytyf-h2020.eu/).

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Section: B Optimizationmentioning

confidence: 99%

Dynamic Virtual Power Plant: A New Concept for Grid Integration of Renewable Energy Sources

Marinescu

Gomis‐Bellmunt

Dörfler³

et al. 2022

IEEE Access

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“…Generally, quadratic function is introduced to model the relationship between generation cost and generation capacity, and expressed as follows (Dagoumas, 2019):…”

Section: Modified Linear Bidding Function Of Generation Companies Under Plan-market Double-track Mechanismmentioning

confidence: 99%

Optimal Planned Electricity Allocation Model for Power Exchange Under the Plan-Market Double-Track Mechanism

Tang

Zhang

et al. 2021

Front. Energy Res.

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The orderly deregulation of planned electricity generation and consumption is an important measure for electricity market reform in several countries (such as China), and a reasonable proportion of planned electricity in the total energy consumption is conducive to the smooth transition from the regulation mode to the market mode. Under the plan-market double-track mechanism (PMDM) implemented, a modified linear bidding function of generation companies (GCs) is first proposed, and the unified clearing price of unilateral generation market is determined accordingly. Second, considering the robust bidding strategies of generation companies, a bi-level optimal planned electricity allocation model for power exchange (PX) is constructed. In the upper level, the proportion of planned electricity is optimized by PX to minimize the CVaR of Lerner Index (LI), so as to maintain the market power at a low level. In the lower level, based on the robust optimization theory and the prediction of rival bidding, the bidding strategy of a GC is optimized by solving a specified max–min problem. Simulations based on data from a provincial electricity market in China illustrate that the market power can be reduced through a reasonable proportion of planned electricity designed by the PX. In addition, when more GCs tend to avoid a market risk, the proportion of planned electricity can be increased accordingly.

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“…The power system of Kazhakstan is presented in detail by a recent work (Assembayeva et al 2018;2019) A developing a spatial electricity market model for the power system of Kazakhstan and providing spatial electricity market data. A recent work (Zhakiyev et al, 2017) present a model for optimal energy dispatch and maintenance of an industrial coal fired combined heat and power plant in Kazakhstan.…”

Section: Power System In Kazakhstanmentioning

confidence: 99%

Zonal Pricing in Kazakhstan Power System With a Unit Commitment Model

Dagoumas

Koltsaklis²

2020

IJEEP

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Developing economies are in process of liberalizing their electricity markets, following similar process in developed economics. This process aims at establishing liquid energy exchanges that provide clear price signals, providing indications on the profitability of different operations: Production, retail, trading in interconnections. This paper aims at developing a unit commitment model for examining zonal market pricing in Kazakhstan. The latter has an extensive landscape but sparsely populated, while is also characterized by the high availability of domestic fossil fuels, but located in different sub-regions of the country. The provision of zonal price signals in such a power system in invaluable, as it enables the provision of clear price signals on the needed infrastructure and the estimation of the zonal hourly energy and technology mix. Moreover, in enables the formation of dynamic bidding strategies by market participants in cases with favourable conditions, such as the implementation of scarcity pricing. This paper presents a unit commitment model that used to assess different bidding strategies and to provide zonal price signals. The strategies are formed, depending on the technology type and fuel prices comparison. Results provide clear signals on needed infrastructure among zones in Kazakhstan. It also shows that dynamic biding can lead to market coupling. Finally, it indicates the importance of institutional capability to monitor bidding strategies, eliminating speculation.

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Impact of Bilateral Contracts on Wholesale Electricity Markets: In a Case Where a Market Participant Has Dominant Position

Cited by 12 publications

References 20 publications

Dynamic Virtual Power Plant: A New Concept for Grid Integration of Renewable Energy Sources

Dynamic Virtual Power Plant: A New Concept for Grid Integration of Renewable Energy Sources

Optimal Planned Electricity Allocation Model for Power Exchange Under the Plan-Market Double-Track Mechanism

Zonal Pricing in Kazakhstan Power System With a Unit Commitment Model

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