Pool Based Market Model Research Articles

The generation revenue and demand payment assessment for pool based market model in Malaysia electricity supply industry

The objective of this paper is to address the economic benefits in term of generation revenue and demand payment for the pool based market model in Malaysia electricity supply industry (MESI). In pool market model, there are issues on the benefit of the generators such as too high system marginal price (SMP) during peak demand and no revenue during low demand. Therefore, conceptual study for two bus test system in MESI involving four generators around Peninsular Malaysia is conducted to perform the economic analysis in term of generation revenue and demand assessment considering existing single buyer model and pool based market model, i.e., pool model, spot market model and the proposed model, in order to identify which market model is superior. As a result, the proposed model managed to decrease the demand payment as it is proportional to generation revenue, even though the generation revenue is at intermediate value and succeed to increase the low and medium generator’s revenue.

The Economic Benefits of Generation Revenue and Demand Payment Assessment in Pool-based Market Model: The Case of Malaysia

In Malaysia, as the Power Purchased Agreement is coming toward the end, pool market model is recognized as a conceivable model to overcome the shortcomings of the single buyer market. However, there are issues on the welfare of the generators involved. In context of Malaysian Electricity Supply Industry, this paper proposes a model, a pool hybrid introducing the minimum capacity payment involving the efficiency of the generators and base load sharing approaches. Under single auction power pool, a case study is conducted for the generators in Peninsular Malaysia for an economic analysis to highlight the merits of the proposed model compared with other pool-based market models in terms of generation revenue and demand payment. The load demand curves, the details of the MW-installed capacity, energy prices, capacity prices, and efficiency of the generators are the parameters taken into account in carry out analysis on each generator revenue. Results have shown that pool hybrid market ensures the intermediate value of generation revenue with all Independent Power Producers participation even at the lowest demand and decreased the demand payment.

The Economic Benefits of Generation Revenue Assessment in Pool-Based Market Model for Restructured Electricity Supply Industry

The electricity supply industry had undergo deregulation and restructuring toward becoming a more transparent and competitive electricity market environment. The pool market model is amongst the most preferred electricity market model. Even though it is a safe option to be more competitive and transparent electricity supply industry, there are issues on the welfare of the generators involved. This paper addresses the pricing issue in the pool market by extending the capacity payment mechanism in the single auction power pool. In the proposed model, the approach of minimum capacity payment involving the efficiency of the generators is introduced. A case study is conducted to illustrate the proposed model. An economic analysis is performed to highlight the merits of the proposed model with the pure pool in term of generation revenue. © 2016 The Authors, published by EDP Sciences.

A new approach for determination and cost allocation of reserve in the restructured power systems

A new approach for reserve capacity determination and cost allocation in the pool-based market model is introduced. In this market, customers have a chance to choose their desired reliability requirements. In the proposed method, after clearing the energy market, reserve market is cleared such that the expected energy not supplied of system becomes equal to or smaller than the standard expected energy not supplied which is determined by Independent System Operator (ISO). This part of reserve cost is allocated among generating units based on their contribution to the reserve requirements. In the second part of reserve market clearing, reserve market is cleared such that the different reliability requirements of different customers are met. This part of reserve cost is allocated among customers according to their reliability requirements. For fairly managing the shortage between different customers in the real time operation, Shortage factor (SF) is introduced. Using the concept of SF, different customers with different reliability requirements can be differentiated in the real time operation. Finally, the proposed method is applied to the RBTS to examine the applicability and effectiveness of the proposed method.