Operation of Electricity Markets
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Transcript of Operation of Electricity Markets
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ELECTRICITY MARKETS
MOHAMMED PITHAPURSNEHA CHERUVATTATH
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ELECTRICITY MARKETS20 YEARS OF EVOLUTION
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REGULATED MONOPOLY MODEL
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WHOLESALE & RETAIL COMPETITION
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ORGANIZED ELECTRICITY MARKETS (NORTH AMERICA)
• Ten Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs) serve 66% of consumers in the U.S. and more than 50% of Canada’s population.
Source: ISO/RTO Council website www.isorto.org
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LOCATION MARGINAL PRICE
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LMP: NO CONSTRAINTS
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LMP: NO CONSTRAINTS
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LMP: NO CONSTRAINTS
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LMP WITH CONSTRAINTS
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LMP WITH CONSTRAINTS
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LMP WITH CONSTRAINTS
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LMP WITH TRANSMISSION LOSSES
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AUCTION
• Suppliers are selected to supply power for certain time along with price and other terms • Organized by RTO: Regional Transmission Organizations• Some places distribution utilities have auctions to supply basic service
customers
• Proposed change from uniform price to pay as bid auction
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Uniform Price Auction
Gen A Gen B Gen C05
101520253035
10
20
30
MW Generated
$/M
Wh
Pay As Bid Auction
Total Cost:
Gen A Gen B Gen C0
5
10
15
20
25
30
35
10
20
30
MW Generated
$/M
Wh
DEMAND: 20 MW
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Source: NYISOwww.nyiso.com
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SIMULATION
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SIMULATION
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Tomorrow’s Electricity Markets!!!
• Large number of traders (maybe millions)• Some with a physical position as supplier and consumer• Making lots of transactions (several times a minute)• Over the entire supply time scale (long, years-out to real-time)• Across the entire network (generator bus to end-use device)
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REFERENCES
• https://en.wikipedia.org/wiki/Electricity_market• https://en.wikipedia.org/wiki/California_electricity_crisis• https://www.eia.gov/Energyexplained/index.cfmpage• https://www.fortnightly.com/fortnightly/2008/03/pay-bid-vs-uniform-p
ricing• https://www.epsa.org/industry/primer/wholesaleMarket