Analysis of Spot Prices Arrangements in Deregulated Electricity Market

Abstract

The absence of central coordination in deregulated electricity markets sets a new range of challenges to their organization and functioning. Although a lot of academic research has been done in the recent years on these topics, contributions and discussions tend to stay within a single field of policy analysis. The fundamental factors in the operation of electrical power systems, at a macro level, are distribution of the operation parameters over vast areas, dominance of human factors and high dimensionality of the problem. Distributed economic operation is a new area of research. This paper extends that research to the management of information distributed in the power network to make it useful for short term economic operation.