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Production cost minimization versus consumer payment minimization in electricity pools

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IIT-99-086A.pdf (134.9Kb)
Fecha
2002-02-01
Autor
Vázquez Martínez, Carlos
Rivier Abbad, Michel Luis
Pérez Arriaga, José Ignacio
Estado
info:eu-repo/semantics/publishedVersion
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Resumen
 
 
Algorithms that involve some kind of optimisation have been adopted by several electricity pools as a tool to clear the market. Traditionally, this kind of models were used on a cost minimising basis, but recent papers have pointed out that alternative dispatches may be obtained that, even with higher production costs, provide cheaper electricity prices for consumers. This paper studies this new payment-minimisation approach, focusing on the long-term economic signals that it provides and analysing their impact on future investments. Our results show that minimising consumer payment results in discriminatory scheduling for certain generation resources and may cause, in the long-run, higher prices for consumers.
 
URI
https:doi.org10.110959.982202
Production cost minimization versus consumer payment minimization in electricity pools
Tipo de Actividad
Artículos en revistas
ISSN
0885-8950
Materias/ categorías / ODS
Instituto de Investigación Tecnológica (IIT)
Palabras Clave

Deregulation, power generation dispatch, pool design, market clearing algorithm, unit commitment, marginal pricing
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