Pricing and operation in deregulated electricity market by noncooperative game

Pricing structure is becoming considerably important for both electric utility industries and their customers. This paper derives an operation rule for a market model with an electric utility and independent power producers (IPPs) as players of the noncooperative game. The derived operation rules reflecting the competition can be viewed as an extension of the conventional equalizing incremental cost method for the deregulated power systems. As indicated in this paper, the prices of electricity for purchases and sales are equal to the incremental costs of the generators of IPPs but are generally cheaper than the incremental cost of the generators belonging to the utility. To examine the proposed approach, several systems are used as the demonstrated examples in this paper.     

An evaluation of the influence caused by the introduction of IPP considering the uncertainty of supply capability

Recently, utilities have been able to purchase the electric energy supplied from independent power producers (IPP) owing to deregulation in the electric industry. This paper evaluates the influence of IPP uncertainty on the utility and/or customer. In general, the production cost of energy supplied from IPPs is lower than that of a utility, although the IPP energy has more uncertainty compared with the utilities energy. This paper analyzes the effects caused by IPPs from the following three points: (i) By modeling a process of determining purchased power price as a negotiation model, the authors evaluate the influence of its uncertainty on a potentiality to introduce IPPs through variation of the purchased price. (ii) The authors evaluate the difference of power system reliability between a system under the deregulated environment with IPPs and a conventional system without IPPs. It is assumed that the system reliability is determined by minimizing the sum of supply cost and outage cost. (iii) Finally, the authors evaluate how the customer's various requirements about reliability influence the introduced amount of IPPs. © 2000 Scripta Technica, Electr Eng Jpn, 131(1): 56–67, 2000     

Game-theoretic analysis of a buy-back system and a cogenerator-customer wheeling system

Electricity markets are experiencing widespread changes that are significantly altering the industry. The purpose of this paper is to analyze the economic consequence of various rules of purchased power pricing and wheeling fees of an electric utility by game theory. A regulator, an electric utility, and a cogenerator are included in this model as players of the game. Consider an extensive game model of an electricity market where a cogenerator sells excess electricity to anelectric utility or an end user. The regulator behaves so as to maximize social welfare. The electric utility and the cogenerator intend to maximize their own profit. The wheeling fee between the electric utility and the cogenerator is adjusted to maximize the sum of incremental profits. We have found that a buy-back system (the utility purchases cogenerated power) and a cogenerator-customer wheeling system are equally efficient and are more desirable than a monopoly system. The buy-back rate should be equal to (in the LP bargaining solution) or less than (in the Nash bargaining solution) the marginal cost of the electric utility. We also conducted an analysis of two-period electricity market.     

Deregulation and opportunities for industrial customers

With the deregulation of the electric power industry, end-use customers will have the choice of selecting their power delivery options. This paper discusses the opportunities available to end-use customers, provides the approach, methodology, and tools necessary to sort out these options, and illustrates the projected savings for a large industrial customer. Under a competitive environment, customers who evaluate their power delivery options with a full understanding of the deregulation process, will benefit the most. This paper explains the nuances of the new marketplace and its primary stakeholders     

A multi-year transmission planning under a deregulated market

Due to the deregulation of power industry, the transmission expansion plan is different from the process done by the integrated monopolies. In a monopoly electric market, the transmission expansion plan is carried out by the vertically integrated utility. The power company integrates its generations’ exploiting plans and its transmission expansion plans to maintain the system reliability. While in a deregulated power industry, generation, transmission, and distribution companies belong to different owners. The problem becomes more difficult. Generators experiencing transmission constraints can be expected to lobby for new transmission facilities that might relieve their constraints, while generators closer the load centers will likely toward not to build any new transmission facilities that would increase their competition. In order to provide a fair environment for all market participants, this paper proposed a reasonable expansion plan taking the operation cost, load curtailment cost, and investment cost into account. Due to the complexity of this model, the algorithm that combines the genetic algorithm with the linear programming method (GA-LP) is used to solve this problem. The 6-bus system and 24-bus IEEE reliability test system are used to verify the proposed model, and comparisons of test results between the proposed model and the traditional model are also demonstrated in this paper.     

可中断负荷管理激励机制的设计

可中断负荷管理（ILM）是供电公司在用电高峰时段为减缓电力供需紧张而实行的一种需求侧管理方法。在电力市场条件下设计了实施可中断负荷的激励机制,以克服因为信息不对称导致供电公司负荷调节能力下降、过多支付用户的中断赔偿等问题。引入信息经济学里的委托-代理理论,使得机制具有激励相容特性,激励用户上报真实的中断成本,从而优化供电公司的负荷分配、减少中断补偿。算例分析和仿真证明了陔机制设计的有效性。     

多区域互联电力系统输送服务边际电价的实现和分析

在电力工业中,按参与转运的电力公司和其他电力公司（电力交易方）在地域上的关系可以划分为不同的转运类型：区域内部,母线到母线;区域间,区域到区域;区域间,区域到母线;区域间,母线到区域;区域间,母线到母线。在一个多区域互联电力系统中,一个区域的有功/无功的边际转运成本是系统中电力交易买卖双方的功率变换变化一个单位时引起的该区域内运行成本的变化。每一个转运区域的边际转运成本是用多区域最优潮流模型基于最优发电调度计算得到的。应用每个区域的发电成本对母线功率需求变化和功率交换水平变化的信息,可以计算不同类型的电力交易的边际转运成本。文中通过一个有16条母线和４个互联区域的系统来分析和运用所提方法,并讨论了负荷水平和交换功率水平变化对边际转运价格的影响。     

System impact study for the interconnection of wind generation and utility system

Following in the steps of the gas industry, the traditional paradigm of the vertically integrated electric utility structure has begun to change. In the United States, the Federal Energy Regulatory Commission has issued several rules and Notices of Proposed Rulemaking to set the road map for the deregulated utility industry. The crisis in California has drawn great attention and sparked intense discussion within the utility industry. One general conclusion is to rejuvenate the idea of integrated resource planning and promote the distributed generation via traditional or renewable generation facilities for the deregulated utility systems. Wind generation is one of the most mature and cost-effective resources among different renewable energy technologies. Recently, several large-scale wind generation projects have been implemented in the U.S. and other parts of the world. Similar to other new generation facilities, the impacts of a large-scale wind generation on the system operation, voltage profile, and system security have to be investigated and studied. Remedies for possible operation issues have to be evaluated and implemented. This paper discusses the impact study of connecting a 120-MW wind farm into the transmission system of a utility company within the southwest power pool.     

Valuation of switchable tariff for wind energy

The current fixed tariff remuneration for wind energy is not compatible with the deregulation of the electric power industry. The time-varying and location-dependent value of renewable energy is not acknowledged. The newly announced switchable tariff for wind energy in the Spanish electricity market provides a promising solution to compensating renewable energy within the deregulated electric power industry. The new switchable tariff provides wind generators more flexibility in operating wind generation assets. Such flexibilities provide option value in coordinating the seasonality of wind energy, demand on electric power and electricity prices movement. This paper models and valuates the flexibility on switching tariff as real compound options for wind generators. Numerical examples valuate wind generation assets under fixed tariff, spot market price taking, and yearly and monthly switchable tariffs. The optimal switching strategies are identified. The impacts of the switchable tariff on sitting criteria and values of wind generation assets are investigated. An improvement on the yearly switchable tariff is suggested to further reduce the operation risk of wind generators and fully explore the efficiency provided by competitive electricity markets.     

IPP selection based on contingency analysis and optimal power flow

Recently the deregulation of the electric power industry has progressed worldwide. In Japan the electric power industry law was revised to achieve a reduced electricity price in 1995, and competition in the power generation market was started in Japan. Moreover, the retail wheeling to large customers was launched in March 2000. Under this situation, IPP selectors (electric power utilities) have to think about efficient connection to existing systems by which they have select IPPs considering not only the cost but also the future demand. Therefore, in order to achieve efficient connection of IPPs to the existing systems some selection guidelines are needed. What IPP selectors want to know is “where” and “how much” in the existing system they want to have IPPs. It is thought that knowing good connecting point(s) and the appropriate capacity of IPPs becomes one of the IPP selection guidelines. In this paper, we propose a method by which we can determine the connecting point(s) and the appropriate capacity of IPPs to plan the appropriate electric power system for the future. The proposed method in which IPP selectors can select from both sides of reliability and economy is verified using simulations. © 2002 Wiley Periodicals, Inc. Electr Eng Jpn, 140(3): 16–25, 2002; Published online in Wiley InterScience ( www.interscience.wiley.com ). DOI 10.1002/eej.10037     

A multiagent approach to power system normal operation

Recently, the electric utility industry worldwide has been facing pressure to be deregulated or restructured in order to increase its efficiency, to reduce operational cost, or to give consumers more alternatives. For this aspect, a great deal more research is needed to achieve a better, intelligent knowledge process. The present centralized system for power system control, operation, and planning must be remodeled to cope with these situations. With the promotion for the deregulation of the electric power system, the definition of the objective function for the optimization problem such as outage work operation for electric power systems is becoming critical. Currently, agents are an intense focus in many subfields of computer science and artificial intelligence. Agents are being used in an increasingly wide variety of applications. In this paper, we developed a power system normal operation application by multiagent architecture. Our multiagent system consists of several facilitator agents, equipment agents, and switch‐box agents. Facilitator agent acts as a manager for negotiation process between agents. Equipment agent corresponds to the element of the electric power system, such as bus, transformer, and transmission line, while switch‐box agent is the pseudo object which consists of neighboring current breakers and disconnecting switches. The proposed system realizes the appropriate switching operations by interacting with corresponding agents. The proposed approach is applied to a simple network, and the results show that the proposed multiagent system is an efficient decentralized approach for solving power system normal operations. © 2004 Wiley Periodicals, Inc. Electr Eng Jpn, 146(4): 26–33, 2004; Published online in Wiley InterScience ( www.interscience.wiley.com ). DOI 10.1002/eej.10227     

Interior structure of UPQC‐type QCC at the low‐voltage side in the FRIENDS

Recently, the worldwide deregulation of the electric power industry is progressing. Further, it is expected that a many distributed generation facilities and energy storage systems will be installed at the end point of the power systems. Therefore, the future power system must be able to cope with these various qualities of power in the deregulated situation. The authors have proposed the FRIENDS (Flexible, Reliable, and Intelligent ENergy Delivery System) concept as a new distribution system that copes with a new framework of the electric power business in the near future. The most typical aspect of FRIENDS is the introduction of new equipment; Quality Control Centers (QCC) between distribution substations and customers. In this paper, the authors propose a concrete interior structure and investigate some control methods for realizing unbundling power quality supply and power conditioning using the proposed UPQC‐type QCC. The effectiveness of the proposed method is confirmed through the instantaneous value analysis using PSCAD/EMTDC. © 2003 Wiley Periodicals, Inc. Electr Eng Jpn, 146(3): 26–38, 2004; Published online in Wiley InterScience ( www.interscience.wiley.com ). DOI 10.1002/eej.10243     

Utility deregulation and its impact on industrial power systems

In this article, the author introduce the current development of electric utility deregulation in the USA and discuss its potential impact on the operation of an example industrial power system     

用最优潮流计算电力转送费用

简要说明电力转送费用计算问题和这一领域的进展;提出一种基于最优潮流的转送费用计算模型和方法,针对存在点到点电力转送服务的输电网,计算由转送服务产生或应由其分摊的各种费用（线路占用费用、有功费用、无功费用、网络安全费用等）,使用内点算法求解该模型,在各种费用的计算中使用了各种乘子和微增率。     

Decision support tools for market participants

The deregulation of electric power industry, among other things, has created new requirements for participants in various electric energy markets and regions. In addition to the traditional power system monitoring, control, dispatch, analysis, optimization, and planning tools, the market participant requires tools to manage physical and financial assets, manage risk, participate in various markets, and decision support tools to provide the edge in a very competitive environment. The power system engineer, operator, and, in general, the market participant is being faced with requirements for which he does not have adequate training and proper background. In this paper, an attempt is made to provide an outline of the new requirements and to provide a footprint of some of the tools that are required to participate in the deregulated electric energy markets.     

The economic dispatch with consideration of transmission servicecharge for a generation company

This paper presents a novel economic dispatch strategy for a generation company which owns several units with different fuel costs, efficiency, and locations, and has a bilateral contract with several large customers. The proposed strategy not only considers the generation cost, but also takes into account the wheeling charge for the use of the transmission system. A modified megawatt-mile method is proposed to calculate the wheeling cost in this paper. Finally, the calculation results of economic dispatch for a generation company with two units and their loads in a real power system is demonstrated     

华中电网输电线路利用份额计算

输电定价的过程可以看作是电网费用在输电系统用户间的分摊过程.因此,了解各输电用户对输电线路的利用份额便成为计算输电电价的关键.结合华中电网的运行特性,文章分别采用潮流分析方法与交易合同分析方法计算了华中主网线路的利用份额.计算结果表明,在确保公平、公正和与实际操作相衔接的条件下,利用后一种方法可取得较为理想的效果,可为进一步计算输电电价提供可靠依据.     

输电线路中转运功率分量的计算及应用

在电力市场商业化运营中确定转运价格时 ,需要对不同转运业务在同一支路中引起的功率进行分析和计算 ,以便根据其对线路的使用情况进行成本追溯。为此 ,文中根据电路的基本理论 ,结合电力系统的实际情况 ,首先对转运业务进行了精确的数学描述 ,提出了功率转运和电量转运的概念 ,为分析转运业务打下了基础 ;其次 ,基于上述对转运的理解 ,给出了线路转运功率的新定义及其计算方法 ,并利用它来描述转运业务对线路的使用程度 ,以便于线路成本的分摊。该线路转运功率的定义不是基于“按比例分摊”的假设条件获得的 ,也没有基于其他的假设条件。而且 ,不同转运业务的线路转运功率以及线路基本功率满足叠加定理 ,便于实际应用     

大用户直购电电价中过网费的计算方式

充分考虑现阶段大用户的负荷特点,提出分开结算的电价的观点,并给予严格证明;同时改进传统的转运费计算模型,使之更为简单,更接近真实的阻塞成本。算例证明了模型的有效性。