The Long-Run Efficiency of Real-Time Electricity Pricing

Borenstein, Severin

doi:10.5547/issn0195-6574-ej-vol26-no3-5

Cited by 342 publications

(271 citation statements)

References 8 publications

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“…The simulation model is based on the model developed by Borenstein and Holland (2005) and Borenstein (2005Borenstein ( , 2007. Our application differs from their specification in the following features.…”

Section: Model and Simulation Algorithmmentioning

confidence: 99%

“…We have used a price that would allow producers just to break even if they were charging that constant price from all customers. See Borenstein (2005) for a more detailed discussion of the role Vol. 3, No.…”

Section: Model and Simulation Algorithmmentioning

confidence: 99%

“…As shown in Borenstein-Holland (2005) and Borenstein (2005) this kind of mechanism leads to a unique long-run equilibrium for the total generation capacity, .…”

mentioning

confidence: 99%

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Economic Value Approach to Intermittent Power Generation in the Nordic Power Markets

Kopsakangas-Savolainen¹,

Svento²

2013

EER

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The key elements in solving the increasing problems of power generation are to develop a sustainable and efficient production system and to utilize consumer management and demand response in a clearly stronger way than have been recently done. A significant part of the renewable energy (wind and solar) differs from most conventional (fossil fuel and nuclear) generating technologies such that they produce electricity intermittently and are not dispatchable. If traditional levelized cost approach is used it gives inappropriate and misleading results. In this paper we utilize a long-run oriented Real-Time Price based model to analyze the economic value of intermittent electricity generation in the Nordic power markets. Using this type of model it is possible to simultaneously take into account the increasing role of demand response and the specific characteristics of intermittent technology. We study the impacts of a change in production profile and increase in the share of intermittent generation to the market prices, equilibrium of other capacities, production costs, profits and CO 2 emissions. Our approach which uses hourly output profiles and associated market value of electricity, gives plausible economic values for electricity.

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Section: Model and Simulation Algorithmmentioning

confidence: 99%

Section: Model and Simulation Algorithmmentioning

confidence: 99%

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Economic Value Approach to Intermittent Power Generation in the Nordic Power Markets

Kopsakangas-Savolainen¹,

Svento²

2013

EER

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“…DSM may refer to increased responsiveness to real-time prices; for example, Alcott (2012) analyzes the repercussions of elastic demand concerning efficiency and welfare, or Borenstein (2005) further elaborates on distributional implications. Likewise, DSM may refer to load shifting between periods, temporary load shedding, or both of the latter like in Paulus and Borggrefe (2011) or Keane et al (2011).…”

Section: Introductionmentioning

confidence: 99%

On the representation of demand-side management in power system models

Zerrahn

Schill

2015

Energy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: Demand-side management (DSM) merits increased attention by power system modelers. Numerical models should incorporate DSM constraints in a complete and consistent way. Otherwise, flawed DSM patterns and distorted conclusions on the system benefits of demand-side management are inevitable. Building on a model formulation put forward by Göransson et al. (2014), it is first suggested to include an additional constraint that resolves the problem of undue DSM recovery. Afterwards, an alternative model is introduced that does not impose a specific temporal structure on load shifts and thus increases the realworld applicability of DSM modeling. The formulation presented here, which is both concise and linear, could readily be included in a wide range of numerical models. Terms of use: Documents in EconStor may

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“…To fully evaluate the impact of policies, however, the short-term approach should be accompanied by an analysis of the long-term equilibrium [48]. One particular formal equilibrium framework developed for demand response by Borenstein and Holland [49] has been applied several times in different variations, showing how real-time pricing and resulting response of elastic demand generates significant benefits even with limited elasticities, for example, for US electricity markets [50,51] and Norway [52]. A related approach has been developed and applied to four weeks of Danish wind and demand data [53].…”

Section: Introductionmentioning

confidence: 99%