Abstract
Currently, to meet the requirements of modern power systems as fully and efficiently as possible, the electricity markets have diversified greatly. Under these conditions, it becomes difficult for a producer to determine the structure of transactions that is financially optimal. Starting from the operational rules of the power systems that have shaped the electricity markets structure, the objective of this paper is to develop an electricity market simulator model that includes the basics of a best practice guide for producers that compete on various electricity markets to carry out the trading activities and enhance their financial results. The market simulator model considers both the bilateral long- or mid-term agreements and short-term offers on day-ahead, ancillary services and balancing markets providing the entire trading scenario and associated cash-flow and risks. Its significance consists in assisting the producer to plan its resources and create projections by performing multiple trading scenarios and selecting the best one. Thus, this paper proposes to uncover constraints and business rules for a simulator model assisting the market players to access the electricity markets and select the best option using Multiple-Criterial Decision-Making (MCDM) methods (Electre, Topsis, Analytical Hierarchy Process) or the weighted Euclidean distance. The simulations comprise four trading scenarios for different types of producers (gas or fossil-powered generators) generating 100 MW, that are ordered by independent criteria. The results obtained with MCDM and the proposed method showed that they indicated the same scenario as the best trading option based on the type of the producer.
Highlights
AND LITERATURE REVIEWThe goal of the whole-sale electricity market with its components (i.e. for long-term contracts – Bilateral Contract Market (BCM), mid-term contracts – Day Ahead Market (DAM) and Intra-Day Market (IDM), and short-term transactions – Balancing Market (BM)) is to provide a temporal balance between load and generation, ensuring a high quality of supply and financial efficiency of the market players.A different market for the Ancillary Services (ASM) is taking place to enhance the security of the electricity supply
Considering a daily typical load curve, the BCM transactions are located at the bottom of the curve, while the other markets follow the variability of the load ensuring a fine balance at the power system level
In order to define IBCM, the trading rules for BCM will be considered. These rules may differ from country to country, the principals are common, the mathematical approach has a high level of generality
Summary
The goal of the whole-sale electricity market with its components (i.e. for long-term contracts – Bilateral Contract Market (BCM), mid-term contracts – Day Ahead Market (DAM) and Intra-Day Market (IDM), and short-term transactions – Balancing Market (BM)) is to provide a temporal balance between load and generation, ensuring a high quality of supply and financial efficiency of the market players. A different market for the Ancillary Services (ASM) is taking place to enhance the security of the electricity supply. The transactions of BCM are secure, the prices are the lowest and the products that can be sold on this market are quite rigid and are not able to follow the variability of the load
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