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03224 A uniform price auction with locational price adjustments for competitive electricity markets
07
Alternative
energy sources (bioconversion
energy)
agricultural and small and medium industries are income inelastic (cl). The short-run price elasticities vary from -1.35 in agriculture, -0.65 in residential, -0.45 in large industry, -0.26 in commercial and insignificant in small and medium industry. Total power shortages from utilities affect the commercial sector most, followed by the residential sector. Electricity generation from renewable energy: the 99103215 French experience Benard, M. Renewable Energy, 1998, 15, (l-4), 264-269. Traditional renewable energy sources (biomass), new renewable energy sources (wind energy, solar energy) and other new renewable energy sources such as tidal power, bagasse- and coal-fuelled power plants and geothermal power are discussed. 99103216 Electricity-the present and the future? Hodgson, S. Energy World, March 1999, 267, 14-15. This review looks at the Electricity Association’s recent account of the industry in the UK, according to its third annual Electricity Industry Review. Environmental damage costs from fossil electricity 99103217 generation in Germany and Europe Krewitt, W. et al. Energy Policy, 1999, 27, (3) 173-183. In contrast to most typical studies on external costs of electricity generation, which aim at the calculation of marginal costs for a new increment of power generation, an extended bottom-up modelling framework has been applied in this work to calculate average health and environmental damage costs from fossil electricity generation in Germany and Europe. Aggregated average damage costs provide helpful complementary information to site and technology specific ‘point’ values to be used for more general policy analysis. Environmental damage costs caused by fossil fired power plants in the EU-15 countries in 1990 amount to about US$70 billion. Results show that damage costs per tonne of pollutant emitted might vary considerably by site and-as structural changes like those observed in the eastern part of Germany after the re-unification show-also over time. A comparison of damage costs and private costs of emission reduction measures in large combustion plants shows that on the European average the implementation of current best available emission reduction technologies is well justified. Flexible AC transmission system devices: 99103216 allocation and transmission pricing de Oliveira, E. J. e? al. Electrical Power and Energy Systems, 1999, 21, (l), 111-118. By some inherent aspects, the transmission of electricity differs from transportation of any typical commodity. These include: the production needs to match the consumption at the same time; system control is not an easy task; the electricity flows do not usually follow the economic law. The last aspect is normally observed when transmission systems are included in, for instance, an economic dispatch problem. One way to minimize the operational costs caused by an overloaded transmission system is through the installation of flexible AC transmission system (FACTS) devices in the system. This paper focuses on their ability to change the overall costs of the system and their impact on transmission pricing. Increase of prices of electric power caused by 99103219 costs for environmental protection Hycnar, J. er al. Karbo-Energochem.-Ekol., 1998, 43, (S), 273-278. (In Poland) Methods for describing emissions into the atmosphere from Polish power plants are presented. These include fluidized-bed boiler firing, wet and dty flue gas cleaning and coal cleaning. Market imperfections on the power markets in 99103220 northern Europe: a survey paper Skytte, K. Energy Policy, 1999, 27, (1) 25-32. Up until now, most analyses of the northern European electricity liberalization have assumed that a perfect competitive electricity market can be obtained. It has not been taken into account that a number of imperfections will inevitably occur-at least during the transition period. These imperfections can be technical, economic or tradition-bound and can also have political characteristics. It is important to recognize and incorporate the market imperfections in the liberalization policy and analysis. Otherwise, the purposes of the liberalization and other energy policy goals may not be achieved. The aim of this paper is to survey market imperfections and their influence on the liberalization processes in northern Europe. 99103221 Price-based adaptive spinning reserve requirements in power system scheduling Tseng, C.-L. er al. Electrical Power and Energy Systems, 1999, 21, (l), 137145. Spinning reserves must be explicitly identified as an ancillary service and priced in a deregulated electricity market such as the California WEPEX. Additionally, scheduling co-ordinators who match suppliers and demands may either self-provide spinning reserves, or rely on the independent system operator (ISO) to provide reserves at the spot price. The deregulated market structure makes explicit the implicit softness that has always been recognized in the reserve constraints; additional reserves may
336
Fuel and Energy Abstracts
September
1999
have value even when a minimum reserve requirement has been met. The spinning reserve requirement (SRR) is formulated here as a function of the endogenously determined marginal values of reserves. The spinning reserve requirement depends, according to a non-increasing response function, on a price/value signal. Three power system scheduling algorithms in which this price/value signal is updated at each iteration of a dual optimization is presented. Game theory is used to interpret the proposed algorithms and numerical test results are presented. Providing for transmission in times of scarcity: an 99103222 IS0 cannot do it all Allen, E. et al. Electrical Powerand Energy Systems, 1999, 21, (l), 147-163. The main purpose of this paper is to point out critical issues for establishing a good transmission strategy in an energy market. A summary of algorithms in reactive power pricing 99103223 Muchayi, M. and El-Hawary, M. E. Electrical Power and Energy Systems, 1999. 21. (1). 119-124. Power factorpenalties have been used for decades as the basis for reactive power pricing. A low power factor implies that more current flows in the network than with the ideal situation with a unity power factor. The extra current flow means that the conduction losses in the wiring and transformers are higher than would be the case with a higher power factor for a given load. Current research has shown that power factor penalties do not provide accurate price signals to customers. The paper aims to present a summary of some of the algorithms that have been proposed for pricing reactive power. The pricing rates are based on marginal costing implemented using some modification of optimal power flow (OPF) algorithms. For maximum economic efficiency, the cost of reactive power transport is as equally significant as active power. A uniform price auction with locational price 99103224 adjustments for competitive electricity markets Ethier, R. et al. Electrical Power and Energy Systems, 1999, 21, (l), 103110. A mechanism is required by competitive electricity markets which rely on centralized dispatch to solicit offers from competing generators. Ideally, such an auction mechanism provides incentives to submit offers equal to the marginal cost of generation for each generator. Economic theory suggests that the uniform price auction is an appropriate institution. However. an efficient implementation of this auction in an electricity context requires that the offers used in the auction reflect the appropriate locational price adjustments for transmission losses and congestion. This paper describes a uniform price auction that incorporates locational price adjustments on a Web-based platform suitable for experimentation. Preliminary results show dramatically different price and revenue results when compared with a simple continuous discriminative auction. 99103225 Use of system approaches for transmission open access pricing Rudnick, H. et al. Electrical Power and Energy Systems, 1999, 21, (l), 125135. The basis of Latin American deregulated markets’ open access schemes is a concept that considers a multilateral use of the transmission system, with all agents contributing to the financing of a common network based on physical and economic usage irrespective of commercial arrangements. The paper describes the concept and the existing schemes and contributes with the formulation of alternative numerical approaches for open access pricing, taking into account energy and capacity use of the system by the participant agents. Distribution factors based on DC power flows are the basic elements of the formulation, which is built based on different physical and economic considerations. The approaches are numerically evaluated in the Chilean main interconnected electrical system with a comparison of the resultant impacts on generators and consumers.
07
ALTERNATIVE SOURCES Bioconversion
ENERGY
Energy
99103226 Chemicals and polymers from biomass Coombs, J. and Hall, K. Renewable Energy, 1998, 15, (la), 54-59. At present, fossil energy prices are relatively low and agricultural prices are at a relatively high level as a result of production costs. Thus, the use of purpose grown crops as a source of fuels requires subsidies, tax support or other financial incentives to be viable. In the short term, the use of agricultural and forest raw materials as industrial raw materials for production of higher value products appears more attractive. Unfortunately, simple substitution of a petroleum-based product by one derived
Alternative
energy sources (bioconversion
energy)
agricultural and small and medium industries are income inelastic (cl). The short-run price elasticities vary from -1.35 in agriculture, -0.65 in residential, -0.45 in large industry, -0.26 in commercial and insignificant in small and medium industry. Total power shortages from utilities affect the commercial sector most, followed by the residential sector. Electricity generation from renewable energy: the 99103215 French experience Benard, M. Renewable Energy, 1998, 15, (l-4), 264-269. Traditional renewable energy sources (biomass), new renewable energy sources (wind energy, solar energy) and other new renewable energy sources such as tidal power, bagasse- and coal-fuelled power plants and geothermal power are discussed. 99103216 Electricity-the present and the future? Hodgson, S. Energy World, March 1999, 267, 14-15. This review looks at the Electricity Association’s recent account of the industry in the UK, according to its third annual Electricity Industry Review. Environmental damage costs from fossil electricity 99103217 generation in Germany and Europe Krewitt, W. et al. Energy Policy, 1999, 27, (3) 173-183. In contrast to most typical studies on external costs of electricity generation, which aim at the calculation of marginal costs for a new increment of power generation, an extended bottom-up modelling framework has been applied in this work to calculate average health and environmental damage costs from fossil electricity generation in Germany and Europe. Aggregated average damage costs provide helpful complementary information to site and technology specific ‘point’ values to be used for more general policy analysis. Environmental damage costs caused by fossil fired power plants in the EU-15 countries in 1990 amount to about US$70 billion. Results show that damage costs per tonne of pollutant emitted might vary considerably by site and-as structural changes like those observed in the eastern part of Germany after the re-unification show-also over time. A comparison of damage costs and private costs of emission reduction measures in large combustion plants shows that on the European average the implementation of current best available emission reduction technologies is well justified. Flexible AC transmission system devices: 99103216 allocation and transmission pricing de Oliveira, E. J. e? al. Electrical Power and Energy Systems, 1999, 21, (l), 111-118. By some inherent aspects, the transmission of electricity differs from transportation of any typical commodity. These include: the production needs to match the consumption at the same time; system control is not an easy task; the electricity flows do not usually follow the economic law. The last aspect is normally observed when transmission systems are included in, for instance, an economic dispatch problem. One way to minimize the operational costs caused by an overloaded transmission system is through the installation of flexible AC transmission system (FACTS) devices in the system. This paper focuses on their ability to change the overall costs of the system and their impact on transmission pricing. Increase of prices of electric power caused by 99103219 costs for environmental protection Hycnar, J. er al. Karbo-Energochem.-Ekol., 1998, 43, (S), 273-278. (In Poland) Methods for describing emissions into the atmosphere from Polish power plants are presented. These include fluidized-bed boiler firing, wet and dty flue gas cleaning and coal cleaning. Market imperfections on the power markets in 99103220 northern Europe: a survey paper Skytte, K. Energy Policy, 1999, 27, (1) 25-32. Up until now, most analyses of the northern European electricity liberalization have assumed that a perfect competitive electricity market can be obtained. It has not been taken into account that a number of imperfections will inevitably occur-at least during the transition period. These imperfections can be technical, economic or tradition-bound and can also have political characteristics. It is important to recognize and incorporate the market imperfections in the liberalization policy and analysis. Otherwise, the purposes of the liberalization and other energy policy goals may not be achieved. The aim of this paper is to survey market imperfections and their influence on the liberalization processes in northern Europe. 99103221 Price-based adaptive spinning reserve requirements in power system scheduling Tseng, C.-L. er al. Electrical Power and Energy Systems, 1999, 21, (l), 137145. Spinning reserves must be explicitly identified as an ancillary service and priced in a deregulated electricity market such as the California WEPEX. Additionally, scheduling co-ordinators who match suppliers and demands may either self-provide spinning reserves, or rely on the independent system operator (ISO) to provide reserves at the spot price. The deregulated market structure makes explicit the implicit softness that has always been recognized in the reserve constraints; additional reserves may
336
Fuel and Energy Abstracts
September
1999
have value even when a minimum reserve requirement has been met. The spinning reserve requirement (SRR) is formulated here as a function of the endogenously determined marginal values of reserves. The spinning reserve requirement depends, according to a non-increasing response function, on a price/value signal. Three power system scheduling algorithms in which this price/value signal is updated at each iteration of a dual optimization is presented. Game theory is used to interpret the proposed algorithms and numerical test results are presented. Providing for transmission in times of scarcity: an 99103222 IS0 cannot do it all Allen, E. et al. Electrical Powerand Energy Systems, 1999, 21, (l), 147-163. The main purpose of this paper is to point out critical issues for establishing a good transmission strategy in an energy market. A summary of algorithms in reactive power pricing 99103223 Muchayi, M. and El-Hawary, M. E. Electrical Power and Energy Systems, 1999. 21. (1). 119-124. Power factorpenalties have been used for decades as the basis for reactive power pricing. A low power factor implies that more current flows in the network than with the ideal situation with a unity power factor. The extra current flow means that the conduction losses in the wiring and transformers are higher than would be the case with a higher power factor for a given load. Current research has shown that power factor penalties do not provide accurate price signals to customers. The paper aims to present a summary of some of the algorithms that have been proposed for pricing reactive power. The pricing rates are based on marginal costing implemented using some modification of optimal power flow (OPF) algorithms. For maximum economic efficiency, the cost of reactive power transport is as equally significant as active power. A uniform price auction with locational price 99103224 adjustments for competitive electricity markets Ethier, R. et al. Electrical Power and Energy Systems, 1999, 21, (l), 103110. A mechanism is required by competitive electricity markets which rely on centralized dispatch to solicit offers from competing generators. Ideally, such an auction mechanism provides incentives to submit offers equal to the marginal cost of generation for each generator. Economic theory suggests that the uniform price auction is an appropriate institution. However. an efficient implementation of this auction in an electricity context requires that the offers used in the auction reflect the appropriate locational price adjustments for transmission losses and congestion. This paper describes a uniform price auction that incorporates locational price adjustments on a Web-based platform suitable for experimentation. Preliminary results show dramatically different price and revenue results when compared with a simple continuous discriminative auction. 99103225 Use of system approaches for transmission open access pricing Rudnick, H. et al. Electrical Power and Energy Systems, 1999, 21, (l), 125135. The basis of Latin American deregulated markets’ open access schemes is a concept that considers a multilateral use of the transmission system, with all agents contributing to the financing of a common network based on physical and economic usage irrespective of commercial arrangements. The paper describes the concept and the existing schemes and contributes with the formulation of alternative numerical approaches for open access pricing, taking into account energy and capacity use of the system by the participant agents. Distribution factors based on DC power flows are the basic elements of the formulation, which is built based on different physical and economic considerations. The approaches are numerically evaluated in the Chilean main interconnected electrical system with a comparison of the resultant impacts on generators and consumers.
07
ALTERNATIVE SOURCES Bioconversion
ENERGY
Energy
99103226 Chemicals and polymers from biomass Coombs, J. and Hall, K. Renewable Energy, 1998, 15, (la), 54-59. At present, fossil energy prices are relatively low and agricultural prices are at a relatively high level as a result of production costs. Thus, the use of purpose grown crops as a source of fuels requires subsidies, tax support or other financial incentives to be viable. In the short term, the use of agricultural and forest raw materials as industrial raw materials for production of higher value products appears more attractive. Unfortunately, simple substitution of a petroleum-based product by one derived