IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v124y2003i1p49-6710.1023-banor.0000004762.31449.33.html
   My bibliography  Save this article

Market Price Calculations in Restructured Electricity Markets

Author

Listed:
  • Gerard Doorman
  • Bjørn Nygreen

Abstract

In the traditional organisation of the power market, the generation Unit Commitment and Dispatch problem was solved as a cost minimisation problem. After deregulation of the electricity sector, the problem must be solved as a profit maximising problem. It is necessary to find feasible market prices. This is difficult, because simple marginal cost based prices not always cover startup and operation-independent costs, with the result that the generator would choose not to run with such prices. In this paper a market structure is proposed with a central market operator computing the market equilibrium for both energy and reserves, based on generator offers and consumer bids. It is shown that it is possible to find feasible market prices. Using a simple test system, it is shown that demand elasticity can have a profound impact on prices and generator revenues and profits during peaking hours. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • Gerard Doorman & Bjørn Nygreen, 2003. "Market Price Calculations in Restructured Electricity Markets," Annals of Operations Research, Springer, vol. 124(1), pages 49-67, November.
    • Handle: RePEc:spr:annopr:v:124:y:2003:i:1:p:49-67:10.1023/b:anor.0000004762.31449.33
    DOI: 10.1023/B:ANOR.0000004762.31449.33
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/B:ANOR.0000004762.31449.33
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/B:ANOR.0000004762.31449.33?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abrell, Jan & Kunz, Friedrich & Weigt, Hannes, 2008. "Start Me Up: Modeling of Power Plant Start-Up Conditions and their Impact on Prices," MPRA Paper 65661, University Library of Munich, Germany.
    2. Jeanne Aslak Petersen & Ditte Heide-Jørgensen & Nina Detlefsen & Trine Boomsma, 2016. "Short-term balancing of supply and demand in an electricity system: forecasting and scheduling," Annals of Operations Research, Springer, vol. 238(1), pages 449-473, March.
    3. Kung-Jeng Wang & Yu-Siang Lin, 2012. "Optimal inventory replenishment strategy for deteriorating items in a demand-declining market with the retailer’s price manipulation," Annals of Operations Research, Springer, vol. 201(1), pages 475-494, December.
    4. Toczylowski, Eugeniusz & Zoltowska, Izabela, 2009. "A new pricing scheme for a multi-period pool-based electricity auction," European Journal of Operational Research, Elsevier, vol. 197(3), pages 1051-1062, September.
    5. Jeanne Aslak Petersen & Ditte Mølgård Heide-Jørgensen & Nina Kildegaard Detlefsen & Trine Krogh Boomsma, 2016. "Short-term balancing of supply and demand in an electricity system: forecasting and scheduling," Annals of Operations Research, Springer, vol. 238(1), pages 449-473, March.
    6. Al-Muhawesh, Tareq A. & Qamber, Isa S., 2008. "The prerequisite for competition in the restructured wholesale Saudi electricity market," Energy Policy, Elsevier, vol. 36(1), pages 477-484, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:124:y:2003:i:1:p:49-67:10.1023/b:anor.0000004762.31449.33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.