Deregulation Of Electric Power Industry Research Articles

Bidding and Cooperation Strategies for Electricity Buyers in Power Markets

Deregulation of electric power industries in recent years has opened many opportunities for electricity buyers. However, the strong influence of network physical constraints may result in economic decisions that adversely affect the interests of the consumers. Compared with the monopolistic economy of yesteryears, electricity buyers may actually be able to influence the market by cooperating with other buyers in the network. This paper presents a coevolutionary approach to investigate individual and cooperative strategies of buyers in a power market, taking fully into account the physical network constraints. First, the study focuses on deterministic cases, where buyers choose their bidding strategies to maximize the profits in different scenarios of playing individually or cooperatively. It is found that, by evolutionary learning, buyers can benefit from cooperation. After that, the uncertain nature of the market is modeled, where buyers find optimal cooperation strategies to hedge against the risk of low payoffs. The payoff distribution problem in cooperative game theory was linked with the optimal coalition generation problem by proving a theorem. The statistically consistent simulation results show that our approach is able to discover interesting cooperation strategies and can be easily extended to practical networks with a large number of buyers.

Measuring efficiency and scope economies of cogeneration enterprises in Northeast China under the background of energy saving and emission reduction

Cogeneration is internationally recognized as an important way to save energy and improve environment. At present, the cogeneration scale in China has been ranked at the second place all round the world. China formulated relevant laws, regulations and technology policies to actively encourage and support the development of cogeneration. This article selects 62 Northeast regional Chinese cogeneration enterprises' financial data from 2003 to 2007, and analyzes the impact of the electric power industry deregulation to cogeneration enterprises' performance by using a partial frontier nonparametric. Further more, we study whether the cogeneration enterprises actualize horizontal scope economy by comparing with the thermal power alone or heat production alone enterprises. Results show that the factory network separation and regional market trial reform can promote the cost efficiency of both five major power group cogeneration enterprises and independent cogeneration enterprises. Compared to five group enterprises, the scope economies index of the independent cogeneration enterprises is lower, the unbundling reform and northeast regional market trial reform have a negative impact on cogeneration enterprises to achieve scope economies and improve cost efficiency.

Regression Analysis of Electric Power Market Price of JEPX

The deregulation of electric power industries is introducing around the world and electric power markets are operated under the deregulation. Also in Japan, JEPX (Japan Electric Power Exchange) operates a day-ahead market since April 2005. We have already analyzed the electric power market prices in the several markets including JEPX by autoregressive models. We compose simple regression equations, of which a dependent variable is the market price and explanatory variables are the demand and the market price of 24 hours ago. In this paper, we analyze JEPX price data in summer seasons from 2007 to 2013. In this period, the JEPX price is affected by many social phenomena such as Lehman Shock and East Japan earthquake disasters. We compare the determination coefficient and the coefficients of regression and investigate the change of coefficients over the years.

Deregulation of Electric Power Industry and Impact on Construction of New Nuclear Power Stations

2014年6月に改正された電気事業法により，2016年をめどに電力供給が家庭用を含め全面自由化されることになった。電力自由化は発電源の多様化を図り，さらに消費者の選択肢を増やし，電気料金の引き下げも視野にした政策である。1973年の第1次オイルショックを契機に米国，欧州などで検討が始まり，その後，米国のいくつかの州，英国をはじめとした欧州諸国などで自由化が行われた。英国では既に自由化から20年以上経つが，その影響は発電設備の減少という形で現れはじめ，英国政府は原子力発電所を含め発電設備新設のための制度を始めることになったが，欧州委員会（EC）の委員から，英国の新制度は「社会主義」とも呼ばれることになった。電力自由化は，必ずしも競争環境を作り出し，電力料金の引き下げを実現したわけではない。

Reliability of electric power systems: challenges in the deregulated environment — a research perspective

Electric power industry deregulation has brought about the unbundling of generation, transmission and distribution services and as such, new techniques for reliability assessment are being developed to account for the consequent structural changes in the restructured environment. The transition towards deregulation imposes several unique challenges for establishing reliability modeling paradigms. Addressing these concerns requires a comprehensive knowledge of the technical and economic issues involved and the identification of relevant research gaps. This paper presents a broader framework for the research perspectives to holistically address the significant issues that can profoundly impact the reliability studies in the liberalized environment. Starting from the improvisations in the reliability network equivalent techniques in vogue, this paper advocates the use of power flow tracing as a potential tool for reliability and well-being studies of power systems, and expands upon their practical implications.

Management of a group of distributed generators aimed at cooperation with the bulk power system

AbstractRecently, the basic framework of electric power systems has been changed significantly by deregulation of electric power industry. Also, distributed generators (DGs) such as renewable energy generations, co‐generations, and energy storage systems have been introduced into the demand sides not only for saving energy and the global environment, but also for compensating voltage drops and supply interruption. In the future power systems, a lot of small‐sized DGs will supply the electricity with existing large‐scale generators under a competitive environment. In this context, it is desirable that DGs contribute to stable, reliable and economic operations by coordinating with existing large‐scale generators. For example, power from large‐scale generators could be leveled if DGs are operated during the peak period. Also, ancillary services such as frequency control, voltage control, and supply of reserve capacity could be executed by controlling DGs directly or indirectly. Under these circumstances, the authors have proposed a new power distribution system: Flexible, Reliable and Intelligent ENergy Delivery System (FRIENDS). This paper investigates some kinds of power supply systems which coordinate DGs with existing large‐scale generators including the concept of FRIENDS and considering how DGs are managed. The effects of DGs which contribute to supply the energy and/or the reserve in every power system are evaluated. © 2008 Wiley Periodicals, Inc. Electr Eng Jpn, 163(1): 48–56, 2008; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/eej.20358

Optimal Operation and Value Evaluation of Pumped Storage Power Plants Considering Spot Market Trading and Uncertainty of Bilateral Demand

In recent years, as the deregulation in electric power industry has advanced in many countries, a spot market trading of electricity has been done. Generation companies are allowed to purchase the electricity through the electric power market and supply electric power for their bilateral customers. Under this circumstance, it is important for the generation companies to procure the required electricity with cheaper cost to increase their profit.The market price is volatile since it is determined by bidding between buyer and seller. The pumped storage power plant, one of the storage facilities is promising against such volatile market price since it can produce a profit by purchasing electricity with lower-price and selling it with higher-price. This paper discusses the optimal operation of the pumped storage power plants considering bidding strategy to an uncertain spot market. The volatilities in market price and demand are represented by the Vasicek model in our estimation. This paper also discusses the allocation of operational reserve to the pumped storage power plant.

Outage costs quantification for benefit–cost analysis of distribution automation systems

Deregulation of electric power industry has motivated electricity customers to pay more attention in evaluating both the direct cost of electric service and the monetary value of reliable electric service. This movement has been recognized by the utilities and the value-based aspects are introduced into the planning and design of power systems to consider the outage costs. The value of service reliability that can portray and respond to actual utility and customer impacts as a result of power interruptions plays a major role on justifying whether a distribution automation (DA) system is beneficial or not. However, for the value of service reliability, there are a number of factors that can affect it. To exactly evaluate the service reliability value, two formulas for quantifying the customer interruption costs and utility reduced energy revenues associated with power failures are derived in this paper. The customer types, feeder loads, feeder failure rate, number of switch, restoration time, and repair time are taken into account. The proposed formulas can provide an exact estimate in outages costs of a feeder and their computation is simplified and straightforward. The estimated outage costs can then be used to calculate the reliability improvement benefit of DA systems for the system benefit–cost analysis. A practical DA system implemented by Taiwan Power Company is used to illustrate the proposed formulas and the benefit–cost analysis result is presented. Sensitivity analysis is also performed to reduce the effects of benefit–cost analysis parameters on the analysis result.

30分同時同量制約下におけるPPSの発電機運用方法と周波数制御への影響評価

Recently, basic framework of electric power systems has been changed greatly by deregulation of electric power industry. Independent Power Producers (IPPs) or Power Producer and Suppliers (PPSs) as new entrants are increasing in the power generation division. For power system stability, conventional electric utilities and PPSs have to take a balance between supply and demand. More specifically, PPSs maintain the difference between energy supplied by generators and energy consumed by demand within fluctuation range of the 30-minute balancing rule and, general electric utilities eliminate its imbalance in the whole power system.This paper investigates PPSs' effects of retail wheeling from both sides of PPSs and a general electric utility. First, from the point of PPSs, it presents a control method of generators under the condition where PPSs produce electric power economically. And from the point of a general electric utility, it evaluates the generation capacity for load frequency control as effect of retail wheeling on the frequency control. The validity of the proposed technique and influence evaluation to the frequency control are shown by the simulation which MATLAB/Simulink is used for.

A Solution Method for Security Constrained Unit Commitment by Lagrangian Decomposition

Recently, deregulation of electric power industry became popular in world wide. In Japan, under partially de-regulated power industry, transmission system is operated by a power company. Although operator of the transmission system tries to determine permissions to connect generators owned by IPPs (Independent Power Producer) and PPSs (Power Producer and Supplier) through considering power congestions for typical power flow conditions, operators inevitably face the congestions of the power system when some generators are in fault conditions. In such a case, operators must resolve the congestions re-scheduling generators owned by their own companies and those owned by IPPs and PPSs. This problem can be solved though a Security Constrained Unit Commitment (SCUC). This paper proposes a new solution algorithm for SCUC by using the Lagrangean decomposition. The method decomposes the SCUC problem into two sub-problems. One sub-problem is a decision problem which determines an operational power flow or generation schedules in which security constraints are taken into account. The other is the unit commitment problem with minimum up/down time constraints for all the units. Several numerical examples are shown to demonstrate the algorithm.

マルチエージェント型電力市場モデルに基づく需要家側電力貯蔵装置の経済性評価

Opened wholesale electric power market in April 2005, deregulation of electric power industry in Japan has faced a new competitive environment. In the new environment, Independent Power Producer (: IPP), Power Producer and Supplier (: PPS), Load Service Entity (: LSE) and electric utility can trade electric energy through both bilateral contracts and single-price auction at the electricity market. In general, the market clearing price (: MCP) is largely changed by amount of total load demand in the market. The influence may cause price spike, and consequently the volatility of MCP will make LSEs and their customers to face a risk of revenue and cost. DSM is attracted as a means of load leveling, and has effect on decreasing MCP at peak load period. Introducing Energy Storage systems (: ES) is one of DSM in order to change demand profile at customer-side. In case that customers decrease their own demand at jumped MCP, a bidding strategy of generating companies may be changed their strategy. As a result, MCP is changed through such complex mechanism. In this paper the authors evaluate MCP by multi-agent. It is considered that customer-side ES has an effect on MCP fluctuation. Through numerical examples, this paper evaluates the influence on MCP by controlling customer-side ES corresponding to variation of MCP.

A Study on Bid Strategies for Electric Power Suppliers in Bilateral Market Considering Spot Market

As the deregulation in electric power industry has advanced in many countries, a spot market and a future market of the electric energy have already been formulated. In Japan, the foundation of a day-ahead spot market is scheduled for the 2005 fiscal year. This paper presents a method to evaluate the expected profit and risk of electric power supplier considering both of spot market and bilateral market. In this paper, Vasicek model is used as a fluctuation in spot price and demand of bilateral market, additionally Value at Risk (VaR) is used as a risk index.

A Study on the Cost Evaluation of Securing the Reserve Capacity under a Competitive Environment

In this paper, the authors evaluate the cost to secure the reserve capacity from the view point of ISO under the competitive environment. It is going on the deregulation of electric power industry now in Japan, and it is assumed that many companies will get into the generation category newly and energy market will be established. So we have to secure the reserve capacity enough to maintain the supply reliability after the deregulation. Generally, it is supposed that ISO should have the responsibility of securing the reserve capacity. Therefore, in this paper we propose two types of ISO security model, one is “Reserve market-based security model" and the other is “Commitment-based security model". The purpose in this paper is to compare with two models in terms of the cost for the supply security and research the better model for the customers.

Letting the (energy) Gini out of the bottle: Lorenz curves of cumulative electricity consumption and Gini coefficients as metrics of energy distribution and equity

Energy services are fundamental determinants of the quality of life as well as the economic vitality of both industrialized and developing nations. Few analytic tools exist, however, to explore changes in individual, household, and national levels of energy consumption and utilization. In order to contribute to such analyses, we extend the application of Lorenz curves to energy consumption. We examined the distribution of residential electricity consumption in five countries: Norway, USA, El Salvador, Thailand, and Kenya. These countries exhibit a dramatic range of energy profiles, with electricity consumption far more evenly distributed across the population in some industrialized nations than others, and with further significant differences in the Lorenz distribution between industrialized and industrializing economies. The metric also provides critical insights into the temporal evolution of energy management in different states and nations. We illustrate this with a preliminary longitudinal study of commercial and industrial electricity use in California during the economically volatile 1990s. Finally, we explore the limits of Lorenz analyses for understanding energy equity through a discussion of the roles that variations in energy conversion efficiency and climate play in shaping distributions of energy consumption. The Lorenz method, which is widely employed by economists to analyze income distribution, is largely unused in energy analysis, but provides a powerful new tool for estimating the distributional dimensions of energy consumption. Its widespread use can make significant contributions to scientific and policy debates about energy equity in the context of climate change mitigation, electric power industry deregulation and restructuring, and the development of national infrastructure.

Use of Critical Clearing Time for Transient Stability Preventive Control

Deregulation of electric power industries has begun in many countries and power system operations have become more difficult. Therefore, power system operators should consider not only economic load dispatch but also on-line stability aspects. In this paper, we pay attention to one of the most important transient stability indices, Critical Clearing Time (CCT), and propose a new transient stability preventive control method using linear relationships between CCTs and generator rotor angles. A preventive control to achieve a more stable operating point is carried out by generator output rescheduling, which are determined using the relationships between CCTs and generator rotor angles.

Decision support tools for market participants

The deregulation of electric power industry, among other things, has created new requirements for participants in various electric energy markets and regions. In addition to the traditional power system monitoring, control, dispatch, analysis, optimization, and planning tools, the market participant requires tools to manage physical and financial assets, manage risk, participate in various markets, and decision support tools to provide the edge in a very competitive environment. The power system engineer, operator, and, in general, the market participant is being faced with requirements for which he does not have adequate training and proper background. In this paper, an attempt is made to provide an outline of the new requirements and to provide a footprint of some of the tools that are required to participate in the deregulated electric energy markets.

Transient stability preventive control for stable operating condition with desired CCT

In recent years, power systems have become larger and more complicated. Deregulation of electric power industries has begun in some countries, and power system operations have become more difficult. However, the stability of the power supply is the most important consideration for customers. Therefore, power system operators should consider not only economic load dispatch but also on-line stability aspects. In this paper, the authors pay attention to one of the most important transient stability indices [critical clearing time (CCT)] and propose a new transient stability preventive control method using linear relationships between CCTs and generator rotor angles. At first, CCT calculations, as contingency screenings, are carried out to find contingencies that have smaller CCTs than predefined target values. The target values are taken as larger values than the actual circuit breaker operating times in the power system. A preventive control to achieve a more stable power system operating point is carried out by generator output rescheduling and generator terminal voltage control, which are determined using the relationships between CCTs and generator rotor angles. This proposed method is demonstrated using a Japanese standard power system called the IEE of Japan (IEEJ) EAST 10 machine system.

Transient Stability Preventive Control for Stable Operating Conditions with Desired CCT

In recent years, power systems have become larger and more complicated. Deregulation of electric power industries has begun in some countries and power system operations have become more difficult. However, the stability of the power supply is the most important consideration for customers. Therefore, power system operators should consider not only economic load dispatch but also on-line stability aspects. In this paper, we pay attention to one of the most important transient stability indices, critical clearing time (CCT), and propose anew transient stability preventive control method using linear relationships between CCTs and generator rotor angles. At first, CCT calculations, as contingency screenings, are carried out to find contingencies that have smaller CCTs than predefined target values. The target values are taken as larger values than the actual circuit breaker operating times in the power system. A preventive control to achieve a more stable power system operating point is carried out by generator output rescheduling and generator terminal voltage control, which are determined using the relationships between CCTs and generator rotor angles. This proposed method is demonstrated using a Japanese standard power system, called the IEEJ EAST 10 machine system.

The current status of electric power industry deregulation in Japan and the influence of the California crisis

In Japan, the Electric Utility Industry Law was amended in 1995 to open Japan’s generation and wholesale markets. The law was amended again in 1999 to facilitate greater deregulation. The crisis of electricity supply in California contains implications to establish a free market in Japan. Examples include how to keep the balance of supply and demand of electricity, what is the structural flaw of the market and more. As Electricity Utility Industry Council is expected to review the deregulation policies in 2003, they should avoid the occurrence of a similar situation in Japan.

Transmission, congestion, pricing, and incentives [in electricity supply

The author argues that a fixation on managing congestion, rather than curing it, and the spectre of market power within local generation markets, enabled by inadequate transmission, threaten to deprive the public of much of the benefit of electric power industry deregulation.