A methodology for evaluating the wholesale/retail prices in deregulation market

R. Li, L. Chen, R. Yokoyama

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    4 Citations (Scopus)

    Abstract

    This paper aims to establish a methodology for evaluating the wholesale or retail prices in a power market which ensures not only the recovery of expense for utilities or regional networks but also provide reasonable electricity prices for consumers, reB.F.cting the market competition. In the power market under consideration, it is assumed that there are multiple IPPs (Independent Power Producers) bidding electric power to a utility or regional network, and that the utility supplies electric power to customers by a fixed transmission network. Bidding curves or prices are the given conditions for the utility because they are independently determined by individual I PP. In addition to the power supplied by IPPs, the utility may or may not have its own generation capacity. With both bids by IPPs and its internal generation capacity, the utility is to decide the retail or wholesale electricity prices for customers. In this project, first a comprehensive model that truly reB.F.cts the competitive relations among IPPs, the utility and customers is proposed. Secondly, an electricity price assessment that can ensure both the maximal expense recovery for the utility and the minimal (most economical) cost for consumers is derived, this price-deriving objective are formulated mathematically as a nonlinear optimization problem. An algorithm for solving the optimization problem is also developed based on the mathematical programming technique.

    Original languageEnglish
    Title of host publication2003 IEEE Bologna PowerTech - Conference Proceedings
    Pages348-355
    Number of pages8
    Volume1
    DOIs
    Publication statusPublished - 2003
    Event2003 IEEE Bologna PowerTech Conference - Bologna
    Duration: 2003 Jun 232003 Jun 26

    Other

    Other2003 IEEE Bologna PowerTech Conference
    CityBologna
    Period03/6/2303/6/26

    Keywords

    • Deregulation
    • Electricity price
    • Marginal cost
    • Marginal Revenue
    • Optimal power flow

    ASJC Scopus subject areas

    • Energy Engineering and Power Technology
    • Fuel Technology

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  • Cite this

    Li, R., Chen, L., & Yokoyama, R. (2003). A methodology for evaluating the wholesale/retail prices in deregulation market. In 2003 IEEE Bologna PowerTech - Conference Proceedings (Vol. 1, pp. 348-355). [1304156] https://doi.org/10.1109/PTC.2003.1304156