{"title":"Model-based analysis of possible capacity mechanisms until 2030 in the European internal electricity market","authors":"N. Tasios, P. Capros, M. Zampara","doi":"10.1109/EEM.2014.6861257","DOIUrl":"https://doi.org/10.1109/EEM.2014.6861257","url":null,"abstract":"This paper uses the PRIMES model, modified to simulate Cournot competition under conjectural variations of the EU Member-State interlinked markets, to assess scenarios that assume the implementation of capacity remuneration mechanisms in the EU electricity market. The analysis begins with identifying the optimum level of investments to the 2030 horizon that ensure capacity adequacy, assuming a Reference scenario of EU energy system developments. We then simulate the operation of a wholesale energy-only market to estimate the ability of these investments to recover their capital cost. We then estimate the amount of capacity remuneration required to covering for the missing revenue margin and we study the implications from hypothetical asymmetric remuneration across the Member-States of the EU. The paper concludes that remuneration of flexibility services by generation units must be the priority in the context of growing penetration of renewables, and that asymmetric implementation of CRM in the EU internal market is likely to imply higher costs and significant market distortions.","PeriodicalId":261127,"journal":{"name":"11th International Conference on the European Energy Market (EEM14)","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134360490","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Any response? How demand response could be enhanced based on early UK experience","authors":"Philipp Gruenewald, J. Torriti","doi":"10.1109/EEM.2014.6861247","DOIUrl":"https://doi.org/10.1109/EEM.2014.6861247","url":null,"abstract":"Policy makers are in broad agreement that demand response should play a major role in EU electricity systems and provide much needed future system flexibility. Yet, little demand response has been forthcoming in member states to date. This paper identifies some of the technical potential for demand response, based on empirical data from one UK demand aggregator. Half-hourly electricity readings of demand during normal operation and during response events have been analysed for different industry and service sectors. We review these findings in the context of ongoing EU policy developments with particular focus on the role appropriate arrangements to enhance the available resource. We conclude that in some sectors appropriate policy and regulation could triple the available response capacity and thereby lead to stronger commercial uptake of demand response.","PeriodicalId":261127,"journal":{"name":"11th International Conference on the European Energy Market (EEM14)","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125682640","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Spanish secondary reserve requirements, clearing and usage","authors":"C. Díaz, Pablo Gonzalez, F. A. Campos, J. Villar","doi":"10.1109/EEM.2014.6861266","DOIUrl":"https://doi.org/10.1109/EEM.2014.6861266","url":null,"abstract":"The technical and economic importance of electricity ancillary services, responsible for guaranteeing the reliability and security of the power systems, is growing due to the continuous penetration of intermittent technologies. Indeed, changes in the net demand are forcing more expensive thermal generation to provide reserves while reducing their energy production. Therefore generation companies' are more and more concerned with reserve markets and their impact on the electricity market forecasting models. This paper analyses historical data from the Spanish electricity market to better understand and forecast secondary reserve requirements and real-time secondary reserve usage. It focuses on the relationship between secondary reserve requirements by the System Operator and the secondary reserve finally cleared, the long term evolution of secondary reserve requirements with respect to the intermittent generation growing, their annual and daily seasonalities, the real-time secondary reserve usage and its annual and daily seasonalities, and some additional hints for the requirements forecasting. Several interesting and not always intuitive conclusions are drawn from the analyzed data.","PeriodicalId":261127,"journal":{"name":"11th International Conference on the European Energy Market (EEM14)","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114806585","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Minimizing opportunity costs of paradoxically rejected block orders in European day-ahead electricity markets","authors":"Mehdi Madani, Mathieu Van Vyve","doi":"10.1109/EEM.2014.6861237","DOIUrl":"https://doi.org/10.1109/EEM.2014.6861237","url":null,"abstract":"We provide with the first formulation of an optimization problem that aims at minimizing total opportunity costs of so-called paradoxically rejected block orders (PRB) in non-convex European day-ahead electricity markets with uniform prices such as the CWE market. This is done in a way avoiding complementarity constraints to model market rules, and without binary variables to linearize them, instead relying on strong duality results. This key property is of much importance from an algorithmic viewpoint. A toy example shows that a welfare maximizing solution (WMS) may not be a solution minimizing opportunity costs (OCMS). However, computations on real data kindly provided by main European power exchanges show that most of the time, the WMS is at least very close to the OCMS. The present work is the first providing with mathematical programming tools to assess the real tradeoff between welfare optimality and opportunity costs of PRB in such non-convex markets.","PeriodicalId":261127,"journal":{"name":"11th International Conference on the European Energy Market (EEM14)","volume":"52 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121683251","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Nodal pricing in a coupled electricity market","authors":"E. Bjørndal, M. Bjørndal, H. Cai","doi":"10.2139/ssrn.2459853","DOIUrl":"https://doi.org/10.2139/ssrn.2459853","url":null,"abstract":"This paper investigates a pricing model for an electricity market with a hybrid congestion management method, i.e. part of the system applies a nodal pricing scheme and the rest applies a zonal pricing scheme. The model clears the zonal and nodal pricing areas simultaneously. The nodal pricing area is affected by the changes in the zonal pricing area since it is directly connected to the zonal pricing area by commercial trading. The model is tested on a 13-node power system. Within the area that is applying nodal pricing, prices and surpluses given by the hybrid pricing model match well with those given by the full nodal pricing model. Part of the network is better utilized compared to the solutions given by the full zonal pricing model. However, the prices given by the hybrid system may send wrong economic signals which triggers unnecessary generation from existing capacities, exacerbates grid congestion, and induces higher re-dispatching costs.","PeriodicalId":261127,"journal":{"name":"11th International Conference on the European Energy Market (EEM14)","volume":"55 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121901980","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Calculation of nodal gas prices using a game theory method","authors":"I. Golub, T. Dzyubina","doi":"10.1109/EEM.2014.6861204","DOIUrl":"https://doi.org/10.1109/EEM.2014.6861204","url":null,"abstract":"The paper proposes different approaches to the determination of a nodal gas price component that corresponds to the cost of transportation constraints. To this end the research focuses on such methods for calculation of nodal prices as traditional, contribution factor, average prices and the Aumann-Shapley method given in the game theory for allocation of total costs. These methods were applied to calculate the cost of transportation constraints for a test and real gas supply systems. In the paper the discussed methods are compared to the Aumann-Shapley method.","PeriodicalId":261127,"journal":{"name":"11th International Conference on the European Energy Market (EEM14)","volume":"36 6","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120928116","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Indicators of energy intensity in industry","authors":"M. Kott, Joanna Kott","doi":"10.1109/EEM.2014.6861253","DOIUrl":"https://doi.org/10.1109/EEM.2014.6861253","url":null,"abstract":"Problems associated with the national energy policy are the most important task facing the economy in context of current political and economic situation. The need for diversification of energy supplies and changes in the structure of their use are enforcing research in this area. In studies of power risks, the attention is drawn to the insufficient energy resource efficiency and lack of precise legal conditions governing the acquisition of energy from ecological sources. The article presents a comparative analysis of Polish industry on background of selected European Union countries. Presents the results of energy intensity research in Polish industrial sector including its branch structure.","PeriodicalId":261127,"journal":{"name":"11th International Conference on the European Energy Market (EEM14)","volume":"83 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116068828","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Simulating the performance of market-based policies for renewable energy using learning trading agents","authors":"Riccardo Fagiani, R. Hakvoort","doi":"10.1109/EEM.2014.6861207","DOIUrl":"https://doi.org/10.1109/EEM.2014.6861207","url":null,"abstract":"Different instruments are available to support electricity generation from renewable energy sources. However, it is still controversial and highly debated which policy leads to preferable results for society. The European Commission has recently stated that a policy relying on a competitive allocation mechanism forcing market players to reveal their real generation costs is preferable. The commission recommends to either allocating feed-in premiums through a tender mechanisms, or to implement a renewable quota obligation scheme. As any other market-based mechanism, both systems are vulnerable to manipulation by market participants. This paper analyzes and compares the performance of the above mentioned mechanisms by simulating the behavior of market participants as adaptive learning agents.","PeriodicalId":261127,"journal":{"name":"11th International Conference on the European Energy Market (EEM14)","volume":"101 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127157368","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Wind and solar integration with plug-in electric vehicles smart charging strategies","authors":"J. Villar, C. Díaz, Pablo Gonzalez, F. A. Campos","doi":"10.1109/EEM.2014.6861265","DOIUrl":"https://doi.org/10.1109/EEM.2014.6861265","url":null,"abstract":"Combining large penetration of Plug-in Electric Vehicles (PEVs) and generation from Renewable Energy Sources (RES) seems a promising solution for energy cost saving and emission reduction. Indeed, RES generation increases instability grid problems due to its intermittency and lack of correlation with final energy usage. But the energy storage of the PEVs connected to the grid, controlled with smart charging and generating strategies, can compensate these uncertainties: energy surplus at low demands and high RES production (strong wind or sunshine) can be returned from PEVs to the grid at larger demand periods, and even provide regulation services. This paper analyses the combined impact of PEVs and RES penetration in the current Spanish power system with a detailed hydro-thermal Unit Commitment (UC) model for energy and reserve. Different charging strategies (from plug-and-charge to V2G with regulation) and wind and solar power penetration are tested with a full year simulation with weekly water management. Simulations show how PEVs smart charging strategies adapt PEVs operation to the existing generation structure, contributing efficiently to higher RES penetration rates, decreasing emissions and system operation costs.","PeriodicalId":261127,"journal":{"name":"11th International Conference on the European Energy Market (EEM14)","volume":"65 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127027266","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"On modeling of the long term electricity markets in systems with wind and demand response","authors":"Anthoula Panagou, M. Zima, G. Andersson","doi":"10.1109/EEM.2014.6861307","DOIUrl":"https://doi.org/10.1109/EEM.2014.6861307","url":null,"abstract":"Increasing proportion of stochastic generation implies risks for the electric grid operation. On the other hand, demand response is expected to lower reserve costs and to flatten the load profile. In this paper we investigate how to model these new conditions and we assess the impact of the new market design. We consider the existing deterministic market and suggest a stochastic economic dispatch that co-optimizes energy and reserve markets and can be used for the long-term forecasting of market outcomes. We solve it by employing a DC stochastic optimal power flow. Testing our method against the deterministic approach as for both the dispatch costs and the robustness we show that the stochastic formulation may lead to more costly results but is also more robust compared to the deterministic one. Sensitivity studies demonstrate the impact of the wind uncertainty and the demand response on the economic dispatch costs.","PeriodicalId":261127,"journal":{"name":"11th International Conference on the European Energy Market (EEM14)","volume":"1785 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127324495","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}