Theoretical justification of the necessity of payment for capacity in IPS

Abstract

One of the most important tasks to be solved in the context of the Integrated power systems (IPS) development is to ensure balance reliability. Its successful solution is possible only if the electricity market is financially balanced the sufficiency of the revenues of energy companies for running a business of electricity production and providing auxiliary services, as well as providing an opportunity for investors to justify the feasibility of implementing projects for the development of generation and the implementation of demand-driven management measures to ensure the IPS balance reliability. When the IPS works according to the rules of the liberalized electricity market, it is impossible to guarantee the owners of generating companies and demand-driven management systems a profit at the level at which they will consider their work on this market expedient in the absence of special mechanisms for providing relevant guarantees, for example, a "green" tariff for power plants on renewable energy sources. Сertainly, without the presence of such mechanisms, it is impossible to justify the feasibility of implementing investment projects for the development of generating capacities and the implementation of measures for managed demand management. This creates significant risks in terms of ensuring balance reliability requirements in the IPS, whose activity is regulated according to the rules of the liberalized electricity market, in the long term due to the possibility the occurrence of a general deficit of generation capacity or insufficient maneuverability of the IPS. The emergence of a deficit will be due to the lack of interest on the part of the owners of generating companies and demand-driven management systems in maintaining the generating units and corresponding systems in an affordable state, which do not bring sufficient profit, as well as due to the lack of investment in the construction of new capacities. Taking into account the above, the purpose of the performed studies, the main results of which are given in the article, was the scientific justification of the need to introduce capacity payment as a key prerequisite for ensuring the IPS balance reliability based on the analysis of their objective properties and features of the functioning of liberalized electricity markets, as well as the appropriate mechanisms for its implementation. Keywords: power system, electric power generation, electricity market, capacity payment, power system balancing reliability