Investment Incentives in Competitive Electricity Markets

Abstract

This paper presents the analysis of a novel framework of study and the impact of different market design criterion for the generation expansion planning (GEP) in competitive electricity market incentives, under variable uncertainties in a single year horizon. As investment incentives conventionally consist of firm contracts and capacity payments, in this study, the electricity generation investment problem is considered from a strategic generation company (GENCO) ′ s perspective, modelled as a bi-level optimization method. The first-level includes decision steps related to investment incentives to maximize the total profit in the planning horizon. The second-level includes optimization steps focusing on maximizing social welfare when the electricity market is regulated for the current horizon. In addition, variable uncertainties, on offering and investment, are modelled using set of different scenarios. The bi-level optimization problem is then converted to a single-level problem and then represented as a mixed integer linear program (MILP) after linearization. The efficiency of the proposed framework is assessed on the MAZANDARAN regional electric company (MREC) transmission network, integral to IRAN interconnected power system for both elastic and inelastic demands. Simulations show the significance of optimizing the firm contract and the capacity payment that encourages the generation investment for peak technology and improves long-term stability of electricity markets.

Research on Modeling and Hierarchical Scheduling of a Generalized Multi-Source Energy Storage System in an Integrated Energy Distribution System

“…Secondly, based on the optimization of DRR regulation cost minimization, the modified regulation target for each type of controllable loads P t m,tar can be calculated. Subsequently, considering the operation state limits of each type of DRR, the GPS is adopted for the responsive load group control...The key operation parameters are selected and integrated as serialization parameters using Equation (22) [34], and the detailed procedure with regard to further priority sequence and control of responsive loads is mainly described in Section 2.3.2. In this regard, GMSES-DRR is regulated to achieve an equivalent energy storage effect in response to the control targets.…”

“…The key operation parameters are selected and integrated as serialization parameters using Equation (22) [34], and the detailed procedure with regard to further priority sequence and control of responsive loads is mainly described in Section 2.3.2. In this regard, GMSES-DRR is regulated to achieve an equivalent energy storage effect in response to the control targets.…”

“…In this case, a hierarchical framework may provide an appropriate way to solve this problem. A novel framework is presented in [22] to study the impacts of investment incentives on generation expansion planning. Based on a two-stage energy management strategy, wind power and plug-in electrical vehicles were able to be used to minimize its operational cost and maintain the power balance in [23].…”

A two‐stage decision framework for inland nuclear power plant site selection based on GIS and type‐2 fuzzy PROMETHEE II: Case study in China

“…The site selection of INPPs, as a strategic decision, not only is critical throughout the life cycle, but also has a significant impact on sustainable development of the region. Natural factors, social factors, economic factors, environmental factors, and so on have a great impact on the power development, which INPPs site selection must take into account. On the one hand, NPPs have extremely stringent requirements for the site, and inappropriate site selection can seriously affect the safety and benefits.…”

Steady-State Stability of Sending-End System with Mixed Synchronous Generator and Power-Electronic-Interfaced Renewable Energy

“…Sending-end system with mixed synchronous generator, generally thermal generators, and power-electronic-interfaced renewable energy, generally wind power, widely exists in northern China and is a typical form of renewable energy exploitation. In addition, new smart hybrid energy market policies improve system reliability and other incentives [15,16]. In this paper, the steady-state stability of this type of system is studied by using the classical model of power system.…”