Impact of emission compliance program on competitive power market

This paper discusses the impact analysis of enforcing emission compliance program on competitive power market operation using an electricity market simulation program, GridView. Certain environmental acts and programs on electricity generating units have imposed various emission constraints. To comply with the required limits, the commitment and dispatch of individual units may need to be adjusted based on the certain parameters, possibly by favoring utilization of low emission rate units. As a result, the effects on system operation conditions and the energy prices could be very drastic and difficult to predict or quantify without the use of a market simulation tool that can make emission compliance an integral part of the market simulation process. This paper discusses the implementation of an iterative emission constraints modeling in a power market simulation program, which leads to an economic equilibrium between various opposing factors. Case studies using the market simulator illustrate the presented approach, and demonstrated the impact of enforcing emission compliance on generation cost, revenue and prices.