Price-Based Commitment Decisions in the Electricity Market

Allen, Eric; Ilić, Marija

doi:10.1007/978-1-4471-0571-8

Cited by 41 publications

(35 citation statements)

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“…where I is a conditional statement equal to 1 if the statement is true and zero otherwise, S i is the generation i start-up cost, T i is the generator i shut-down cost, x k is the state variable (the on-off unit status) and u k is the control that corresponds to maximum up and down time constraints ([3], [76]):…”

Section: Unit Commitmentmentioning

confidence: 99%

An algorithmic interactive planning framework in support of sustainable technologies

Prica

Ilić

2015

2015 IEEE Power &Amp; Energy Society Innovative Smart Grid Technologies Conference (ISGT)

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This thesis addresses the difficult problem of generation expansion planning that employs the most effective technologies in today's changing electric energy industry. The electrical energy industry, in both the industrialized world and in developing countries, is experiencing transformation in a number of different ways. This transformation is driven by major technological breakthroughs (such as the influx of unconventional smaller-scale resources), by industry restructuring, changing environmental objectives, and the ultimate threat of resource scarcity.This thesis proposes a possible planning framework in support of sustainable technologies where sustainability is viewed as a mix of multiple attributes ranging from reliability and environmental impact to short-and long-term efficiency. The idea of centralized peak-load pricing, which accounts for the tradeoffs between cumulative operational effects and the cost of new investments, is the key concept in support of long-term planning in the changing industry. To start with, an interactive planning framework for generation expansion is posed as a distributed decision-making model. In order to reconcile the distributed sub-objectives of different decision makers with system-wide sustainability objectives, a new concept of distributed interactive peak load pricing is proposed. To be able to make the right decisions, the decision makers must have sufficient information about the estimated long-term electricity prices. The sub-objectives of power plant owners and load-serving entities are profit maximization. Optimized long-term expansion plans based on predicted electricity prices are communicated to the system-wide planning authority as long-run bids. The long-term expansion bids are cleared by the coordinating planner so that the system-wide long-term performance criteria are satisfied. The interactions between generation owners and the coordinating planning authority are repeated annually. We view the proposed interactive planning framework as a necessary paradigm for planning in the changing industry where choice must be reconciled with societal public objectives.ii ACKNOWLEDGEMENTS First and foremost I want to thank my advisor Professor Marija Ilic. It has been an honor to be her doctoral student. I appreciate all her contributions of time, ideas, and funding to make my studying possible. I am thankful for the exceptional example she has provided as a successful woman engineer and professor.

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Section: Unit Commitmentmentioning

confidence: 99%

An algorithmic interactive planning framework in support of sustainable technologies

Prica

Ilić

2015

2015 IEEE Power &Amp; Energy Society Innovative Smart Grid Technologies Conference (ISGT)

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“…If the criteria do not account for SU and SD costs, this amounts to solving a decentralized ED [4]. If the UC constraints are accounted for, this amounts to solving a decentralized UC [1]. Here we illustrate that, depending on which method is used, the decision to bid is quite different.…”

Section: A An Example Of Unit Commitment Based Biddingmentioning

confidence: 93%

“…Here the bidders explicitly provide generation specific constraints and costs, and the ISO uses centralized unit commitment to select bids so that total cost is minimized subject to operating constraints and costs [1].…”

Section: Selectionmentioning

confidence: 99%

“…This is known as a decentralized UC problem, and its complexity varies depending if price is assumed to be known or not [1]. Moreover, depending if the bidder acts as a price taker or it attempts to influence the market price, the bids will be different.…”

Section: Bidding To California Style Markets (Decentralized Uc and Cementioning

confidence: 99%

“…Suppose also that both markets are perfectly competitive, in the sense that generators are price-takers. Let us consider only a deterministic UC problem, which assumes known prices 1 . To start with, the total cost (TC) of the bidder is incurred independent of the type of market, i.e..…”

Section: Bidding To California Style Markets (Decentralized Uc and Cementioning

confidence: 99%

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On the complexity of market power assessment in the electricity spot markets

Visudhiphan

Ilić²,

Mladjan

2002 IEEE Power Engineering Society Winter Meeting. Conference Proceedings (Cat. No.02CH37309)

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). M. Mladjan is currently an undergraduate student at MIT, Cambridge, MA 02139, USA (e-mail: mdrjanm@mit.edu). Abstracts:In this paper we point out various factors which should be taken into consideration when assessing market power in the evolving electricity markets. Of particular interest are the effects of the electricity market design rules, type of software employed when computing electricity clearing price, and the generation technology-specific costs, such as start up and shut down costs. In this paper we propose a method of estimating a benchmark price which accounts for these factors unique to electricity markets; when assessing market power the actual price is compared to this benchmark price. The pros and cons of assessing market power using such aggregate benchmark price and/or more direct analysis of individual bids are illustrated using the New England market data.

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Enhancing price‐responsiveness of end‐use customers' loads: dynamically administered critical peak pricing

Joo

Ahn

Yoon

2008

Int Trans Elec Energy Syst

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SUMMARYThe purpose of this paper is to examine the economic and technical perspectives of dynamically administered critical peak pricing (DA-CPP) program as an active demand response (DR) program. To implement a good DR program, there are three perspectives to be considered: regulatory, economic, and technical perspectives. We propose a special DA-CPP program as an effective DR program, which is administered by an energy service provider (ESP). ESP has control on when to call critical peaks on this program. This gives both the administrator and the end-use customers incentives to reduce loads on critical moments. We will assume that the regulatory perspective of DR is determined as a DA-CPP program and examine the other two. The economic perspective of DA-CPP program is the incentive of the program administrator, or the profit of an ESP. The technical perspective is a method to maximize the incentive of DA-CPP program, or an ESP's profit. An ESP should decide when to call critical peaks within certain constraints to maximize her profit. This is done by predicting the market prices and following a similar method as evaluating a swing option. The numerical example will show the optimal critical peak decisions.

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Price-Based Commitment Decisions in the Electricity Market

Cited by 41 publications

References 0 publications

An algorithmic interactive planning framework in support of sustainable technologies

An algorithmic interactive planning framework in support of sustainable technologies

On the complexity of market power assessment in the electricity spot markets

Enhancing price‐responsiveness of end‐use customers' loads: dynamically administered critical peak pricing

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