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Evaluation of CO2 free electricity trading market in Japan by multi-agent simulations

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  • Sichao, Kan
  • Yamamoto, Hiromi
  • Yamaji, Kenji

Abstract

As of November 2008, a new market, the CO2 free electricity market, started pilot trading within the Japan Electric Power Exchange (JEPX). The electricity in this market comes from renewable resources, nuclear or fossil thermal power with CDM credits. The demanders of the CO2 free electricity are supposed to be the power companies with high emission rates. In this paper, we analyzed the effects of the new market by using a multi-agent based model to simulate the markets. From our simulation results, we found that the demander, under strict CO2 emission regulations, tends to buy more electricity from the new CO2 free market even though the price of this market is higher than that of the normal power exchange market. Suppliers with hydro or nuclear power plants only sell their electricity to the CO2 free market, and suppliers with coal power plants also enter this market (with CDM credits). The media and peak demands in the normal market are met mainly by electricity from LNG power plants. We also compared the results from the multi-agent approach with those from the least-cost planning approach and found that the results of the two methods were similar.

Suggested Citation

  • Sichao, Kan & Yamamoto, Hiromi & Yamaji, Kenji, 2010. "Evaluation of CO2 free electricity trading market in Japan by multi-agent simulations," Energy Policy, Elsevier, vol. 38(7), pages 3309-3319, July.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:7:p:3309-3319
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    References listed on IDEAS

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    1. Asano, Hiroshi, 2006. "Regulatory reform of the electricity industry in Japan: What is the next step of deregulation?," Energy Policy, Elsevier, vol. 34(16), pages 2491-2497, November.
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    Cited by:

    1. John Foster & William Paul Bell & Craig Froome & Phil Wild & Liam Wagner & Deepak Sharma & Suwin Sandu & Suchi Misra & Ravindra Bagia, 2012. "Institutional adaptability to redress electricity infrastructure vulnerability due to climate change," Energy Economics and Management Group Working Papers 7-2012, School of Economics, University of Queensland, Australia.
    2. Foster, John & Bell, William Paul & Wild, Phillip & Sharma, Deepak & Sandu, Suwin & Froome, Craig & Wagner, Liam & Misra, Suchi & Bagia, Ravindra, 2013. "Analysis of institutional adaptability to redress electricity infrastructure vulnerability due to climate change," MPRA Paper 47787, University Library of Munich, Germany.
    3. Liu, Beibei & He, Pan & Zhang, Bing & Bi, Jun, 2012. "Impacts of alternative allowance allocation methods under a cap-and-trade program in power sector," Energy Policy, Elsevier, vol. 47(C), pages 405-415.
    4. Tang, Ling & Wu, Jiaqian & Yu, Lean & Bao, Qin, 2015. "Carbon emissions trading scheme exploration in China: A multi-agent-based model," Energy Policy, Elsevier, vol. 81(C), pages 152-169.
    5. Kim, Dong Wook & Chang, Hyun Joon, 2012. "Experience curve analysis on South Korean nuclear technology and comparative analysis with South Korean renewable technologies," Energy Policy, Elsevier, vol. 40(C), pages 361-373.
    6. Yongli Wang & Shanshan Song & Mingchen Gao & Jingyan Wang & Jinrong Zhu & Zhongfu Tan, 2020. "Accounting for the Life Cycle Cost of Power Grid Projects by Employing a System Dynamics Technique: A Power Reform Perspective," Sustainability, MDPI, vol. 12(8), pages 1-28, April.
    7. Salehizadeh, Mohammad Reza & Soltaniyan, Salman, 2016. "Application of fuzzy Q-learning for electricity market modeling by considering renewable power penetration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 1172-1181.

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