This document outlines the key elements needed for a competitive electricity market, including:
1) Separating generation, transmission, and distribution with competition in generation;
2) Ensuring open access to the transmission system and power pool for coordination/dispatch;
3) The power pool providing essential services like backup power and reserves;
4) Opportunity cost pricing through the power pool; and
5) Potentially extending competition to retail customers if distribution wires are regulated.
Market Based Criteria for Congestion Management and Transmission PricingIJERA Editor
Congestion Management is one of the major tasks performed by system operator to ensure the operation of transmission system within operating limits. In the emerging electric power market, the congestion management becomes extremely important and it can impose a barrier to the electricity trading. In the present paper, a concept of transmission congestion penalty factors is developed and implemented to control power overflows in transmission lines for congestion management. Here we presents a Re-dispatch methodology for cost of transmission network to its user. The transmission price computation considers the physical impact caused by the market agents in the transmission network. The paper includes case study for IEEE 5 bus power system.
Bidding strategies in deregulated power marketGautham Reddy
This document provides a 3-page summary of a report on bidding strategies in deregulated power markets. It includes an introduction describing electricity markets and deregulation. It then covers market structure under deregulation and operation of power systems. The remainder of the document outlines the report's contents which include an analysis of various bidding strategies and algorithms, case studies, and a literature review citing 48 relevant sources.
Electricity Market Model By Riffat RizviIEEEP Karachi
The document discusses four electricity market models:
1) Monopoly Model - Vertically integrated utility with no competition
2) Purchasing Agency Model - Generation is competitive but transmission and distribution is controlled by a single utility
3) Wholesale Competition Model - Generation and wholesale markets are competitive but distribution is controlled by local utilities
4) Full Retail Competition Model - Competition exists in generation, wholesale, and retail markets.
The document analyzes Pakistan's electricity market transition and notes that while privatization generated revenue, improved efficiency in the power sector has yet to be achieved.
This chapter examines the economic impact of transmission networks on their users. It discusses how transmission networks can affect system operation costs through losses and constraints. Losses occur as some power is lost as heat during transmission, requiring more generation. Constraints may require more costly generation if cheaper options violate transmission limits. The chapter also notes the importance of location - both in determining the impact of individual users on losses and constraints, and in allocating network costs to users based on their contributing locations.
This document provides a guide for designing, implementing, and monitoring competitive power supply solicitations to obtain the best deal for electric utility customers. It discusses the importance of ensuring a credible solicitation process through collaborative design with input from all stakeholders and independent third-party monitoring. Further, it addresses choosing appropriate solicitation formats and product types, such as requests for proposals and price-only auctions, as well as considerations for fair bid evaluation such as comparability, transmission assessments, and creditworthiness. The overall goal is to use competitive solicitations as a tool for determining prudent power purchase decisions and alleviating concerns about affiliate bias.
This document discusses power system deregulation. It begins with an introduction that defines electric deregulation as changing rules and regulations that allow for competition among electricity suppliers. The objectives of deregulation are then outlined, including providing reliable supply at affordable prices. Key concepts like open access and the roles of generation companies, transmission companies, and distribution companies in the deregulated system are explained. The benefits of deregulation such as reduced prices and improved efficiency are also summarized. Organization models for restructuring the power utility are then described, followed by an explanation of how spot prices are calculated in a deregulated market.
bidding strategies in indian restructured power marketKomal Nigam
This document provides an outline for a thesis on bidding strategies in the Indian power market. It includes an introduction to the Indian power market and deregulation. It discusses topics that will be covered like transmission pricing, bidding classifications and mechanisms, literature review outcomes and objectives. It provides timelines and references that will be used. In summaries the key aspects of the deregulated market and the research problem around determining market clearing prices with multiple generators and constraints.
Market Based Criteria for Congestion Management and Transmission PricingIJERA Editor
Congestion Management is one of the major tasks performed by system operator to ensure the operation of transmission system within operating limits. In the emerging electric power market, the congestion management becomes extremely important and it can impose a barrier to the electricity trading. In the present paper, a concept of transmission congestion penalty factors is developed and implemented to control power overflows in transmission lines for congestion management. Here we presents a Re-dispatch methodology for cost of transmission network to its user. The transmission price computation considers the physical impact caused by the market agents in the transmission network. The paper includes case study for IEEE 5 bus power system.
Bidding strategies in deregulated power marketGautham Reddy
This document provides a 3-page summary of a report on bidding strategies in deregulated power markets. It includes an introduction describing electricity markets and deregulation. It then covers market structure under deregulation and operation of power systems. The remainder of the document outlines the report's contents which include an analysis of various bidding strategies and algorithms, case studies, and a literature review citing 48 relevant sources.
Electricity Market Model By Riffat RizviIEEEP Karachi
The document discusses four electricity market models:
1) Monopoly Model - Vertically integrated utility with no competition
2) Purchasing Agency Model - Generation is competitive but transmission and distribution is controlled by a single utility
3) Wholesale Competition Model - Generation and wholesale markets are competitive but distribution is controlled by local utilities
4) Full Retail Competition Model - Competition exists in generation, wholesale, and retail markets.
The document analyzes Pakistan's electricity market transition and notes that while privatization generated revenue, improved efficiency in the power sector has yet to be achieved.
This chapter examines the economic impact of transmission networks on their users. It discusses how transmission networks can affect system operation costs through losses and constraints. Losses occur as some power is lost as heat during transmission, requiring more generation. Constraints may require more costly generation if cheaper options violate transmission limits. The chapter also notes the importance of location - both in determining the impact of individual users on losses and constraints, and in allocating network costs to users based on their contributing locations.
This document provides a guide for designing, implementing, and monitoring competitive power supply solicitations to obtain the best deal for electric utility customers. It discusses the importance of ensuring a credible solicitation process through collaborative design with input from all stakeholders and independent third-party monitoring. Further, it addresses choosing appropriate solicitation formats and product types, such as requests for proposals and price-only auctions, as well as considerations for fair bid evaluation such as comparability, transmission assessments, and creditworthiness. The overall goal is to use competitive solicitations as a tool for determining prudent power purchase decisions and alleviating concerns about affiliate bias.
This document discusses power system deregulation. It begins with an introduction that defines electric deregulation as changing rules and regulations that allow for competition among electricity suppliers. The objectives of deregulation are then outlined, including providing reliable supply at affordable prices. Key concepts like open access and the roles of generation companies, transmission companies, and distribution companies in the deregulated system are explained. The benefits of deregulation such as reduced prices and improved efficiency are also summarized. Organization models for restructuring the power utility are then described, followed by an explanation of how spot prices are calculated in a deregulated market.
bidding strategies in indian restructured power marketKomal Nigam
This document provides an outline for a thesis on bidding strategies in the Indian power market. It includes an introduction to the Indian power market and deregulation. It discusses topics that will be covered like transmission pricing, bidding classifications and mechanisms, literature review outcomes and objectives. It provides timelines and references that will be used. In summaries the key aspects of the deregulated market and the research problem around determining market clearing prices with multiple generators and constraints.
Derivatives Contracts in Indian Electricity MarketAmitava Nag
Supreme Court is overseeing the issue of electricity futures jurisdiction between SEBI and CERC. SEBI is expected to oversee the functioning of all financially traded electricity forwards while CERC would regulate physically settled forward where electricity is delivered on future date at the contracted price.
Once future trading is started, power exchanges would be in a position to offer derivative instruments to participants. This could be electricity futures with a clear delivery based schedule (delivery at a price on future date) and other derivative instruments such as call and put options. This will help both generators and consumers to mitigate risks by hedging their positions through derivative instruments.
Electricity Markets Regulation - Lesson 2 - Market DesignLeonardo ENERGY
This section explains the main properties of different types of electricity markets exhibiting different level of competition and different forms of organisation.
• General market models : vertically integrated companies / single buyer / wholesale competition / retail competition
• Power pools : Price based / Cost based
• Markets with bilateral trade
• Balancing markets
• Power exchanges
The document summarizes the deregulation and privatization of the UK electricity market in the 1990s. It discusses how the industry was separated into generation, transmission, distribution, and supply segments. It also describes how the electricity pool pricing mechanism works, with generators submitting hourly bids and the market clearing price being set where supply meets demand. There is discussion of whether prices are too high due to potential market power of generators and price volatility. The Competition Commission was tasked with reviewing the market and determining if generators refusing a "Market Abuse Licence Condition" was against the public interest.
Power procurement through TBCB for Bundle GenerationAmitava Nag
The document provides guidelines for a tariff-based competitive bidding process to procure round-the-clock power from grid-connected renewable energy projects complemented with power from coal-based thermal power projects. Under the guidelines, generators will supply dispatchable renewable power balanced with thermal power to maintain at least 85% annual availability. A single composite tariff will be quoted for the renewable and thermal energy. The bidding parameter will be this composite tariff, and the bidder quoting the lowest tariff will be selected. The minimum capacity that can be offered is 250 MW to achieve economies of scale.
Congestion management in the context of deregulationPulakesh k kalita
This document discusses congestion management in the context of deregulated electricity markets. It begins by defining deregulation and describing the current deregulated scenario. Congestion occurs when there is insufficient transmission capacity to meet market demand. In deregulated markets with open transmission access, generation patterns can change rapidly based on market forces, requiring congestion management schemes. Various methods of congestion management are described, including re-dispatching transactions, priority-based rules, and auctioning of transmission capacity. Market splitting and market coupling are two approaches used to integrate markets across congested transmission lines. The role of an independent system operator in maintaining reliability while promoting economic efficiency is also outlined.
This document provides an overview of congestion management in power systems. It discusses that congestion occurs when the physical or operational limits of the transmission network are reached. Congestion management aims to prioritize transactions to avoid overloading the network. It involves both precautionary actions by system operators to allow only transactions within limits, and remedial actions if congestion occurs in real-time due to unscheduled flows. The document then covers various congestion management methods including explicit auctions, implicit auctions, market splitting, counter trading, and re-dispatching. It compares the characteristics and examples of different market-based and non-market based approaches.
The utility landscape is dynamic. Some pundits claim that traditional utility regulation is becoming obsolete. Others are calling for a complete overhaul of utility ratemaking as we know it; distributed energy resources, technology advancements and societal trends are changing the way utilities function. In such turbulent times, how can utilities manage their financials through rate structures? How can utilities bridge the span between the rate and regulatory frameworks of yesterday and tomorrow? One way to do so is to revisit the design of rate offerings available to all utility customers and to residential customers in particular.
This document provides an overview of electricity reform, outlining its key objectives, elements, and players. The objectives of electricity reform include increasing efficiency, reducing costs, improving quality of service, and attracting domestic and foreign investment. Key elements include breaking up vertically integrated utilities, opening monopolies to competition, and establishing independent regulatory bodies. Typical reform steps outlined by the World Bank include incorporation, restructuring, establishing legislation and an independent regulator, introducing independent power producers, and privatizing generation and distribution. The document also outlines different electricity market models and provides brief summaries of reform activities in Turkey, Jordan, and proposals for Kurdistan.
Introduction of Real Time Electricity Martket in IndiaAmitava Nag
The document summarizes India's new Real Time Electricity Market. Key points:
- The market operates on a half-hourly basis, allowing buyers and sellers to place bids for each 15 minute time block.
- Generators with long-term contracts must share 50% of net gains from this market with distribution companies.
- The market gives distribution companies an alternative for accessing power at competitive prices in real time and generators a way to sell unused capacity.
- It is intended to provide a flexible platform for distribution companies to meet real-time energy needs compared to the existing bilateral contracting system.
The document discusses electricity deregulation and the requirements for a deregulated electricity market. It outlines the benefits of deregulation such as more efficient use of generation capacity, improved consumer choice, and potentially lower prices. In a deregulated market there are different entities like generators, transmitters, distributors, retailers, and customers. Regulation is still needed to prevent monopoly behavior and ensure reliability. The document compares regulated versus deregulated industry structures and different market models for electricity trading. It also discusses issues in deregulated markets like network congestion, supply shortages, defaults, and lack of experience with risk hedging tools. The objective of India's Electricity Act of 2003 was to introduce competition while protecting consumers and ensuring universal access to electricity
1) The document discusses the European Commission's Green Paper on Energy Policy. It argues that completing the internal EU electricity and gas markets should remain the top priority for EU energy policy.
2) It states that national policies that promote national security, competitiveness, or environmental goals could undermine the EU single markets if they are incompatible. Truly competitive EU electricity and gas markets would lower prices and improve security of supply.
3) The document advocates for reforms to encourage more competition in the energy market, such as strengthening rules around unbundling transmission from other energy activities, and allowing secondary markets for transmission capacity rights. This would help ensure adequate investment in energy infrastructure and generation capacity.
Electricity Market Day 2015 - Colas Chabanne, ENTSO-E WG Market Design and ...Fingrid Oyj
ENTSO-E is an organization of 41 transmission system operators from 34 European countries. It has no official position on capacity mechanisms but discusses various options for ensuring long-term generation adequacy. Key options discussed include capacity obligations where consumers/suppliers contract capacity, capacity auctions where total needed capacity is procured through auction, and reliability options resembling call options. Several European countries have implemented forms of these. Cross-border participation in capacity mechanisms is challenging but important to address given mechanisms in several countries; transmission system operators will play a key role through cooperation.
Bidding strategies in deregulated power marketGautham Reddy
This document discusses bidding strategies for power suppliers in deregulated electricity markets. It explains that deregulation allows competitive suppliers to enter the market and gives consumers a choice in suppliers. Bidding involves suppliers submitting quantity and cost bids to either buy or sell energy. A market clearing price is determined that balances supply and demand. The goal of strategic bidding is to maximize profits by constructing optimal bids based on costs and expectations of rivals. Mathematical models are presented for profit maximization using linear supply curves. The document also discusses using fuzzy adaptive gravitational search and genetic algorithms to determine optimal bidding coefficients.
The document discusses the restructuring of power systems from monopolistic to deregulated markets. It explains that restructuring separates generation, transmission, distribution and supply functions. This creates new business opportunities and lower costs for consumers. Various restructuring models are presented including poolco, bilateral contracts and hybrid models. The poolco model uses a centralized market to set prices while bilateral contracts allow direct negotiations. The hybrid model combines features of the first two. An independent system operator maintains grid operations.
Indian electricity market and power exchangesNageswar Rao
This document discusses Indian electricity markets and power exchanges. It provides information on how electricity is traded as a commodity for both power and energy. An electricity market enables purchases through bids to buy and sales through offers to sell using supply and demand principles. Power exchanges facilitate transparent and efficient trading of electricity in India on a day-ahead basis through a double-sided closed auction. The two main power exchanges in India are the Indian Energy Exchange and Power Exchange India, which allow generators and distribution companies to trade electricity.
Course on Regulation and Sustainable Energy in Developing Countries - Session 1Leonardo ENERGY
This session is devoted to the design of schemes for the large-scale dissemination of renewable energy technologies in developing countries. Market-based mechanisms overcome partly the limits of donor aid-projects. They build on public-private partnerships where a network of local entrepreneurs contributes to the maintenance of systems.
The example of solar home systems will be explained. Even if there are in many instances in parity with fossil fuels, small photovoltaic systems remain unaffordable for the majority of rural inhabitants without proper financial support mechanisms. But in the most active countries, the number of systems disseminated is now in the range of several ten thousands to several hundred thousands systems, thanks to the implementation of rural energy services companies.
Recent technological innovation could contribute to the acceleration of the diffusion of solar photovoltaic. The innovation introduced by the massive diffusion of mobile phones in developing countries tends simultaneously to create new markets for small photovoltaic systems and could improve the conditions for the diffusion of these systems by facilitating the daily management of these systems by rural energy services companies. Furthermore, Light Emitting Diodes (LED) technology opens new perspectives of self-sustained market diffusion.
The implementation of small rural energy services companies can also help to disseminate a wider range of products: LPG, cookstoves, biodigesters... New practices from rural energy providers tend to target more precisely the demand of end-users by combining the offer of photovoltaic systems with a variety of technologies to satisfy other energy needs than basic lighting in rural areas.
Concrete case studies from the dissemination of different renewable energy technologies in developing countries will be presented, notably in Zambia, South Africa, Bangladesh, China...
It will conclude with the institutional and regulatory framework that needs to be implemented to help rural energy services companies to thrive even in the most remote areas of developing countries.
SmartestEnergy: Introduction to the Electricity MarketFrancesca Schoultz
This document provides an overview of electricity markets and power purchase agreements (PPAs) for renewable generators. It summarizes different types of PPAs, including those used for various renewable subsidies in the UK. It also discusses key components of electricity prices, such as wholesale power prices, embedded benefits, and renewable subsidies. Additionally, it outlines how electricity is traded in wholesale markets and the role of system operator Elexon in balancing supply and demand.
The document discusses India's restructuring of its power grid. It explains that India is undergoing power sector restructuring like other countries around the world. It then provides details on the components that make up the grid like transformers and circuit breakers. It discusses the need for restructuring due to financial constraints and the goal of improving efficiency. The document examines models used internationally and suggests the Transmission System Operator model is most suitable for India. It outlines features of the Electricity Act of 2003 that facilitates the restructuring.
This document discusses using electricity exchanges to enable cross-border electricity trade between countries in South Asia. It proposes setting up separate bidding areas within the Indian electricity exchange (IEX) for neighboring countries to allow them to trade power. Bangladesh and Nepal are provided as examples where a trader could act as an intermediary, placing bids on the exchange on behalf of those countries. International examples of integrated electricity markets are also presented to illustrate how regional cooperation could develop over time.
This document discusses various types of FACTS (Flexible AC Transmission System) devices used to control power flow in transmission lines. It describes shunt FACTS devices like static VAR compensators (SVC) and static synchronous compensators (STATCOM) which can generate or absorb reactive power. It also discusses series FACTS devices like thyristor-controlled series capacitors (TCSC) and static synchronous series compensators (SSSC) which can control active power flow by varying the line impedance. TCSC is highlighted as being more economical than other series FACTS technologies and can provide benefits like damping power oscillations, improving stability and controlling power flow.
1. Unit commitment involves determining the optimal mix of generators to meet expected demand while satisfying operational constraints like minimum up and down times. It aims to minimize total costs which include start-up costs and variable running costs.
2. The example problem determines the lowest cost combination of 3 generators to produce 550MW of power. Various constraints like minimum generation levels and ramp rates must be considered.
3. Key constraints in unit commitment include minimum and maximum generation limits, minimum up and down times, and ramp rates for changing output. System constraints require matching generation to load while maintaining sufficient operating reserves. Environmental and network limits also factor into the optimization.
Derivatives Contracts in Indian Electricity MarketAmitava Nag
Supreme Court is overseeing the issue of electricity futures jurisdiction between SEBI and CERC. SEBI is expected to oversee the functioning of all financially traded electricity forwards while CERC would regulate physically settled forward where electricity is delivered on future date at the contracted price.
Once future trading is started, power exchanges would be in a position to offer derivative instruments to participants. This could be electricity futures with a clear delivery based schedule (delivery at a price on future date) and other derivative instruments such as call and put options. This will help both generators and consumers to mitigate risks by hedging their positions through derivative instruments.
Electricity Markets Regulation - Lesson 2 - Market DesignLeonardo ENERGY
This section explains the main properties of different types of electricity markets exhibiting different level of competition and different forms of organisation.
• General market models : vertically integrated companies / single buyer / wholesale competition / retail competition
• Power pools : Price based / Cost based
• Markets with bilateral trade
• Balancing markets
• Power exchanges
The document summarizes the deregulation and privatization of the UK electricity market in the 1990s. It discusses how the industry was separated into generation, transmission, distribution, and supply segments. It also describes how the electricity pool pricing mechanism works, with generators submitting hourly bids and the market clearing price being set where supply meets demand. There is discussion of whether prices are too high due to potential market power of generators and price volatility. The Competition Commission was tasked with reviewing the market and determining if generators refusing a "Market Abuse Licence Condition" was against the public interest.
Power procurement through TBCB for Bundle GenerationAmitava Nag
The document provides guidelines for a tariff-based competitive bidding process to procure round-the-clock power from grid-connected renewable energy projects complemented with power from coal-based thermal power projects. Under the guidelines, generators will supply dispatchable renewable power balanced with thermal power to maintain at least 85% annual availability. A single composite tariff will be quoted for the renewable and thermal energy. The bidding parameter will be this composite tariff, and the bidder quoting the lowest tariff will be selected. The minimum capacity that can be offered is 250 MW to achieve economies of scale.
Congestion management in the context of deregulationPulakesh k kalita
This document discusses congestion management in the context of deregulated electricity markets. It begins by defining deregulation and describing the current deregulated scenario. Congestion occurs when there is insufficient transmission capacity to meet market demand. In deregulated markets with open transmission access, generation patterns can change rapidly based on market forces, requiring congestion management schemes. Various methods of congestion management are described, including re-dispatching transactions, priority-based rules, and auctioning of transmission capacity. Market splitting and market coupling are two approaches used to integrate markets across congested transmission lines. The role of an independent system operator in maintaining reliability while promoting economic efficiency is also outlined.
This document provides an overview of congestion management in power systems. It discusses that congestion occurs when the physical or operational limits of the transmission network are reached. Congestion management aims to prioritize transactions to avoid overloading the network. It involves both precautionary actions by system operators to allow only transactions within limits, and remedial actions if congestion occurs in real-time due to unscheduled flows. The document then covers various congestion management methods including explicit auctions, implicit auctions, market splitting, counter trading, and re-dispatching. It compares the characteristics and examples of different market-based and non-market based approaches.
The utility landscape is dynamic. Some pundits claim that traditional utility regulation is becoming obsolete. Others are calling for a complete overhaul of utility ratemaking as we know it; distributed energy resources, technology advancements and societal trends are changing the way utilities function. In such turbulent times, how can utilities manage their financials through rate structures? How can utilities bridge the span between the rate and regulatory frameworks of yesterday and tomorrow? One way to do so is to revisit the design of rate offerings available to all utility customers and to residential customers in particular.
This document provides an overview of electricity reform, outlining its key objectives, elements, and players. The objectives of electricity reform include increasing efficiency, reducing costs, improving quality of service, and attracting domestic and foreign investment. Key elements include breaking up vertically integrated utilities, opening monopolies to competition, and establishing independent regulatory bodies. Typical reform steps outlined by the World Bank include incorporation, restructuring, establishing legislation and an independent regulator, introducing independent power producers, and privatizing generation and distribution. The document also outlines different electricity market models and provides brief summaries of reform activities in Turkey, Jordan, and proposals for Kurdistan.
Introduction of Real Time Electricity Martket in IndiaAmitava Nag
The document summarizes India's new Real Time Electricity Market. Key points:
- The market operates on a half-hourly basis, allowing buyers and sellers to place bids for each 15 minute time block.
- Generators with long-term contracts must share 50% of net gains from this market with distribution companies.
- The market gives distribution companies an alternative for accessing power at competitive prices in real time and generators a way to sell unused capacity.
- It is intended to provide a flexible platform for distribution companies to meet real-time energy needs compared to the existing bilateral contracting system.
The document discusses electricity deregulation and the requirements for a deregulated electricity market. It outlines the benefits of deregulation such as more efficient use of generation capacity, improved consumer choice, and potentially lower prices. In a deregulated market there are different entities like generators, transmitters, distributors, retailers, and customers. Regulation is still needed to prevent monopoly behavior and ensure reliability. The document compares regulated versus deregulated industry structures and different market models for electricity trading. It also discusses issues in deregulated markets like network congestion, supply shortages, defaults, and lack of experience with risk hedging tools. The objective of India's Electricity Act of 2003 was to introduce competition while protecting consumers and ensuring universal access to electricity
1) The document discusses the European Commission's Green Paper on Energy Policy. It argues that completing the internal EU electricity and gas markets should remain the top priority for EU energy policy.
2) It states that national policies that promote national security, competitiveness, or environmental goals could undermine the EU single markets if they are incompatible. Truly competitive EU electricity and gas markets would lower prices and improve security of supply.
3) The document advocates for reforms to encourage more competition in the energy market, such as strengthening rules around unbundling transmission from other energy activities, and allowing secondary markets for transmission capacity rights. This would help ensure adequate investment in energy infrastructure and generation capacity.
Electricity Market Day 2015 - Colas Chabanne, ENTSO-E WG Market Design and ...Fingrid Oyj
ENTSO-E is an organization of 41 transmission system operators from 34 European countries. It has no official position on capacity mechanisms but discusses various options for ensuring long-term generation adequacy. Key options discussed include capacity obligations where consumers/suppliers contract capacity, capacity auctions where total needed capacity is procured through auction, and reliability options resembling call options. Several European countries have implemented forms of these. Cross-border participation in capacity mechanisms is challenging but important to address given mechanisms in several countries; transmission system operators will play a key role through cooperation.
Bidding strategies in deregulated power marketGautham Reddy
This document discusses bidding strategies for power suppliers in deregulated electricity markets. It explains that deregulation allows competitive suppliers to enter the market and gives consumers a choice in suppliers. Bidding involves suppliers submitting quantity and cost bids to either buy or sell energy. A market clearing price is determined that balances supply and demand. The goal of strategic bidding is to maximize profits by constructing optimal bids based on costs and expectations of rivals. Mathematical models are presented for profit maximization using linear supply curves. The document also discusses using fuzzy adaptive gravitational search and genetic algorithms to determine optimal bidding coefficients.
The document discusses the restructuring of power systems from monopolistic to deregulated markets. It explains that restructuring separates generation, transmission, distribution and supply functions. This creates new business opportunities and lower costs for consumers. Various restructuring models are presented including poolco, bilateral contracts and hybrid models. The poolco model uses a centralized market to set prices while bilateral contracts allow direct negotiations. The hybrid model combines features of the first two. An independent system operator maintains grid operations.
Indian electricity market and power exchangesNageswar Rao
This document discusses Indian electricity markets and power exchanges. It provides information on how electricity is traded as a commodity for both power and energy. An electricity market enables purchases through bids to buy and sales through offers to sell using supply and demand principles. Power exchanges facilitate transparent and efficient trading of electricity in India on a day-ahead basis through a double-sided closed auction. The two main power exchanges in India are the Indian Energy Exchange and Power Exchange India, which allow generators and distribution companies to trade electricity.
Course on Regulation and Sustainable Energy in Developing Countries - Session 1Leonardo ENERGY
This session is devoted to the design of schemes for the large-scale dissemination of renewable energy technologies in developing countries. Market-based mechanisms overcome partly the limits of donor aid-projects. They build on public-private partnerships where a network of local entrepreneurs contributes to the maintenance of systems.
The example of solar home systems will be explained. Even if there are in many instances in parity with fossil fuels, small photovoltaic systems remain unaffordable for the majority of rural inhabitants without proper financial support mechanisms. But in the most active countries, the number of systems disseminated is now in the range of several ten thousands to several hundred thousands systems, thanks to the implementation of rural energy services companies.
Recent technological innovation could contribute to the acceleration of the diffusion of solar photovoltaic. The innovation introduced by the massive diffusion of mobile phones in developing countries tends simultaneously to create new markets for small photovoltaic systems and could improve the conditions for the diffusion of these systems by facilitating the daily management of these systems by rural energy services companies. Furthermore, Light Emitting Diodes (LED) technology opens new perspectives of self-sustained market diffusion.
The implementation of small rural energy services companies can also help to disseminate a wider range of products: LPG, cookstoves, biodigesters... New practices from rural energy providers tend to target more precisely the demand of end-users by combining the offer of photovoltaic systems with a variety of technologies to satisfy other energy needs than basic lighting in rural areas.
Concrete case studies from the dissemination of different renewable energy technologies in developing countries will be presented, notably in Zambia, South Africa, Bangladesh, China...
It will conclude with the institutional and regulatory framework that needs to be implemented to help rural energy services companies to thrive even in the most remote areas of developing countries.
SmartestEnergy: Introduction to the Electricity MarketFrancesca Schoultz
This document provides an overview of electricity markets and power purchase agreements (PPAs) for renewable generators. It summarizes different types of PPAs, including those used for various renewable subsidies in the UK. It also discusses key components of electricity prices, such as wholesale power prices, embedded benefits, and renewable subsidies. Additionally, it outlines how electricity is traded in wholesale markets and the role of system operator Elexon in balancing supply and demand.
The document discusses India's restructuring of its power grid. It explains that India is undergoing power sector restructuring like other countries around the world. It then provides details on the components that make up the grid like transformers and circuit breakers. It discusses the need for restructuring due to financial constraints and the goal of improving efficiency. The document examines models used internationally and suggests the Transmission System Operator model is most suitable for India. It outlines features of the Electricity Act of 2003 that facilitates the restructuring.
This document discusses using electricity exchanges to enable cross-border electricity trade between countries in South Asia. It proposes setting up separate bidding areas within the Indian electricity exchange (IEX) for neighboring countries to allow them to trade power. Bangladesh and Nepal are provided as examples where a trader could act as an intermediary, placing bids on the exchange on behalf of those countries. International examples of integrated electricity markets are also presented to illustrate how regional cooperation could develop over time.
This document discusses various types of FACTS (Flexible AC Transmission System) devices used to control power flow in transmission lines. It describes shunt FACTS devices like static VAR compensators (SVC) and static synchronous compensators (STATCOM) which can generate or absorb reactive power. It also discusses series FACTS devices like thyristor-controlled series capacitors (TCSC) and static synchronous series compensators (SSSC) which can control active power flow by varying the line impedance. TCSC is highlighted as being more economical than other series FACTS technologies and can provide benefits like damping power oscillations, improving stability and controlling power flow.
1. Unit commitment involves determining the optimal mix of generators to meet expected demand while satisfying operational constraints like minimum up and down times. It aims to minimize total costs which include start-up costs and variable running costs.
2. The example problem determines the lowest cost combination of 3 generators to produce 550MW of power. Various constraints like minimum generation levels and ramp rates must be considered.
3. Key constraints in unit commitment include minimum and maximum generation limits, minimum up and down times, and ramp rates for changing output. System constraints require matching generation to load while maintaining sufficient operating reserves. Environmental and network limits also factor into the optimization.
This document summarizes an optimal power flow analysis, which aims to optimize power system operating conditions subject to constraints. It discusses:
- The objective is to minimize total generation costs by optimizing control variables like generator real/reactive power outputs.
- The optimization is subject to constraints like power flow equations, generator/load balances, voltage and branch flow limits.
- Common objectives include fuel cost minimization, active power loss minimization, and reactive power planning to minimize costs.
- The fuel cost minimization objective function expresses the total generation cost as a function of generator real power outputs, with the goal of minimizing this cost subject to the network constraints.
The document discusses optimization techniques, including genetic algorithms and particle swarm optimization. It provides definitions and classifications of optimization problems and algorithms. Specifically, it describes the implementation of genetic algorithms as follows:
1. Genetic algorithms initialize a random population of solutions and evaluate them to determine fitness.
2. Operators like selection, crossover and mutation are then applied to produce new potential solutions. Selection chooses the fittest for reproduction, crossover combines solutions, and mutation introduces random changes.
3. The process repeats, selecting and breeding new solutions, until a termination condition is met like reaching a maximum number of generations.
The document discusses the history and types of fuel cells. It outlines important developments in fuel cell technology from 1839 when the first fuel cell was created by Sir William Grove to 2005 when fuel cells started becoming available to the public. It also describes the main types of fuel cells including proton exchange membrane, direct methanol, solid oxide, alkaline, molten carbonate, and phosphoric acid fuel cells. Examples of current fuel cell vehicles from Honda, Toyota, and future models from Hyundai and other automakers are provided.
Este documento habla sobre el trabajo intercelular sistémico y cómo la fe y la confianza en Dios pueden permitir el desarrollo de equipos a través de la colaboración. Explica conceptos como la sinapsis y cómo el trabajo en equipo puede ser útil para retener congregantes. También menciona el liderazgo basado en principios y la importancia de los puntos de contacto con los demás.
El documento ofrece 7 claves para mejorar la lectura. La primera clave es aprovechar cualquier momento para leer. La segunda es elegir el formato más cómodo para uno. La tercera es no juzgar un libro por su portada o título. La cuarta es no descartar géneros literarios. La quinta es escuchar los consejos de otros sobre lectura. La sexta es no preocuparse por equivocarse en la elección y probar otro libro. Y la séptima es que para aprender de todo hay que leer.
This document discusses fuel cells, including their parts, working principle, types, advantages, disadvantages, and applications. Fuel cells generate electricity through an electrochemical reaction between hydrogen and oxygen, without combustion. They have higher efficiency than combustion engines and produce only water emissions. However, fuel cells are currently more expensive than batteries. Major applications of fuel cells include powering vehicles, devices, and buildings. Several organizations are working to develop fuel cell technology further.
This document describes the procedure of venesection, or venous cut-down, which involves surgically exposing a vein and inserting a cannula to obtain vascular access. It is used when peripheral IV access is not possible, such as in trauma patients, infants, or those in hypovolemic shock. The great saphenous vein at the ankle is the most common site. Proper technique and aseptic precautions can make it a rapid and safe procedure, though it carries risks of complications like hemorrhage, phlebitis, and nerve damage.
This document provides an overview of fuel cells, including their definition, history, applications, types, construction, function, and key information. A fuel cell converts the chemicals hydrogen and oxygen into water, producing electricity in the process. Their history dates back to 1800 with early discoveries, but significant development occurred in the 20th century. Fuel cells can power vehicles, submarines, and other applications. The main types include polymer exchange membrane, solid oxide, alkaline, molten-carbonate, phosphoric-acid, and direct-methanol fuel cells. While more efficient than gas engines, challenges remain around costs, temperatures, infrastructure, and durability.
The document provides an overview of hydrogen-based fuel cell technology. It discusses the history of fuel cells from their invention in 1839 to current applications in vehicles. The document outlines the working of a fuel cell and explains why fuel cell technology is needed to reduce air pollution and dependence on fossil fuels. It also discusses challenges like high costs, lack of infrastructure and durability issues that need to be addressed for widespread adoption of fuel cells.
El documento presenta una serie de instrucciones y preguntas sobre un cuento. Se pide completar oraciones, ordenar títulos alfabéticamente, identificar palabras y responder preguntas sobre detalles del cuento.
La solicitud de admisión de Angela Quiñonez al curso de Hotelera-Turismo en la Universidad Técnica Luis Vargas incluye su nombre, el curso seleccionado y el sistema nacional de admisión y nivelación al que pertenece.
described definition ..all types of fire protection devices...fire alarm systems..fire detector systems..standards for designing building in case of afire,emergency exit,safety factors...
The document summarizes the capstone project of designing and building a parking shade structure. It describes several technical challenges faced, including determining the placement of FRP rebar, forming equations for the curved awning, scheduling collaboration times, curing delays, incorrect structural assumptions, and difficulties assembling the final structure. It also notes the project provided practical experience in areas like project management, teamwork, and implementing new technologies such as FRP reinforcement and arched cantilever design.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
Revealing the value of flexibility in electricity markets - September 2013Stephen Woodhouse
The attached slides outline our ideas on how the value of flexibility could be traded in the European electricity markets, within the context of the Target Model. Contact Stephen Woodhouse at Pöyry for further details of an ongoing study
Flexibility will be increasingly important for operating electricity systems as renewable targets lead to more variable generation. Current incentives may not sufficiently reward flexibility. A proposal is made to (1) allow intraday cross-border trading of flexibility, (2) define balancing services by capability rather than standardized products, and (3) optimize resources across locations and timeframes through market mechanisms. This could help reveal the true value of flexibility.
This document discusses the use of PLEXOS software for modeling electricity and natural gas markets in the United States. It provides background on deregulated electricity markets operated by Independent System Operators, including two-settlement energy markets, capacity markets, and ancillary service markets. PLEXOS can simulate these complex multi-horizon markets, and additionally model gas-electric coordination and integration of renewables through sub-hourly modeling of energy and ancillary services. The document lists PLEXOS capabilities relevant to electricity market planning objectives and ongoing challenges around resource adequacy, environmental policies, and reliability in the US.
This document discusses modernizing the electric grid to leverage distributed energy resources (DERs) like rooftop solar and energy storage. It finds that DERs can provide over $1.4 billion in annual net societal benefits for California by 2020. However, the current utility regulatory model and grid planning processes are not designed for high DER adoption and instead incentivize utility infrastructure buildout. The document calls for changes to these structures to properly account for DER benefits and ensure least-cost grid solutions that maximize customer and societal value.
This document discusses electricity tariff models and the way forward for the power sector in India. It outlines three main tariff models: cost of service regulation, incentive regulation using price caps, and a hybrid model. It notes the advantages and disadvantages of each approach. The document then discusses issues around taking distribution companies towards a more competitive model, including unbundling distribution companies to separate wiring and supply businesses, privatizing distribution company supply functions, and defining the ongoing role of regulators.
This document summarizes Gaz de France's response to the European Commission's Green Paper on energy policy. Some key points:
- Full implementation of unbundling between grids and energy trading is important, but ownership unbundling should not be mandatory as there is no clear evidence it improves performance.
- More harmonization of rules across Europe would benefit customers and companies operating across borders. A European regulator could help with harmonization and cross-border infrastructure projects.
- Investments in infrastructure need support, including exemptions for large cross-border projects. Long-term gas contracts are important for securing supply and should not be restricted.
- Energy efficiency, renewables and diversification should be encouraged
This document provides a guide for designing, implementing, and monitoring competitive power supply solicitations to obtain the best deal for electric utility customers. It discusses the importance of ensuring a credible solicitation process through collaborative design with input from all stakeholders and independent third-party monitoring. Further, it addresses choosing appropriate solicitation formats and product types, such as requests for proposals and price-only auctions, as well as considerations for fair bid evaluation such as comparability, transmission assessments, and creditworthiness. The overall goal is to use competitive solicitations as a tool for determining prudent power purchase decisions and alleviating concerns about affiliate bias.
Transmission congestion management effects on reducing cost of bilateral mark...IRJET Journal
1) The document discusses transmission congestion management and its effects on reducing costs in bilateral electricity markets and increasing trader profits.
2) It presents a case study simulating a two-bus power system under different congestion scenarios and analyzing the use of financial derivatives and transmission rights to manage congestion risks.
3) The study finds that financial transmission rights allow generators to be compensated for congestion fees, fixing transmission prices and making arrangements profitable for traders. This protects traders from price fluctuations due to transmission constraints.
In this Energy Flash we give an overview of the package and discuss the challenges ahead and the many controversies surrounding the Clean Energy Package.
This document discusses solar feed-in tariffs and renewable portfolio standards in Germany and California. It explains that feed-in tariffs set a fixed price that solar producers are paid for electricity, while renewable portfolio standards set renewable energy production quotas and let market prices be determined. Germany pioneered feed-in tariffs in 1991 and California established a renewable portfolio standard in 2002, requiring 20% renewable energy by 2017. Both policies have effectively increased solar power adoption.
Competition policy in the digital age final projectAntonino Galo
This is a short description related to Regulator policy, Framework delimitations, directed to people involved in policy making about Competition Policy in Digital Era.
On October 31st and November 1st, 2016, the Center for Regulation and Infrastructure from Fundação Getulio Vargas (FGV CERI) organized a two-day workshop discussion in collaboration with the World Bank and ABRACE. The event gathered regulators, government representatives, academics, operators, financial institutions and investors. The debate focused on the main challenges faced by the current restructuring process of the Brazilian gas industry. This document presents the main points discussed during the debates.
Date: 2017-01
Authors:
Vazquez, Miguel
Amorim, Lívia
Dutra, Joísa Campanher
What is a PPA (Power Purchase Agreement) ?
A Power Purchase Agreement (PPA) often refers to a long-term electricity supply agreement between two parties, usually between a power producer and a customer (an electricity consumer or trader). The PPA defines the conditions of the agreement, such as the amount of electricity to be supplied, negotiated prices, accounting, and penalties for non-compliance.
Since it is a bilateral agreement, a PPA can take many forms and is usually tailored to the specific application. Electricity can be supplied physically or on a balancing sheet. PPAs can be used to reduce market price risks, which is why they are frequently implemented by large electricity consumers to help reduce investment costs associated with planning or operating renewable energy plants.
A Power Purchase Agreement (PPA) is a long-term contract between an electricity generator and purchaser that defines the conditions for the sale of electricity. PPAs provide price stability and help finance renewable energy projects by guaranteeing revenue. There are physical PPAs, which deliver electricity directly, and virtual PPAs, which financially settle the contract without physical delivery. PPAs benefit both renewable developers by enabling project financing, and buyers seeking long-term electricity price certainty and renewable attributes.
This document discusses line-by-line embedded transmission pricing methodologies. It introduces concepts of deregulating the electric power industry and defines wheeling as transmitting electricity from a seller to buyer through a third party transmission network. It discusses different wheeling cost computation methodologies, including embedded and incremental cost approaches. It focuses on explaining the "line-by-line" embedded methodology in detail and how it can be used to calculate wheeling costs by allocating all existing and new transmission system costs to wheeling customers.
The document discusses electric utility rate structures and how customers can identify potential ways to reduce energy costs. It provides background on utility costs and how rates are determined based on three main cost components: customer costs, energy/commodity costs, and demand costs. The summary then describes the basic rate structure most utilities follow, including customer charges, energy charges, and demand charges. It also discusses some common rate variations utilities use like seasonal pricing, block pricing, riders, and discounts.
This document discusses power system planning and the changing electricity supply industry. It covers:
- The evolution from centralized planning to deregulation and restructuring, with generation and supply now involving private investment and market forces rather than government forecasting.
- The technical aspects of power systems, including generation, transmission at high voltages, distribution at lower voltages, and matching supply to varying customer demand loads.
- The different types of generating plants like steam turbines, gas turbines, and renewables, and how they operate at different load factors based on cost and demand duration curves.
- Other topics like ensuring security and reliability of supply, revenue collection, and incorporating environmental sustainability into planning.
This document summarizes the performance analysis and enhancement of a microcontroller-based photovoltaic (PV) pumping system. It describes the system components, including the PV cell, power modulator, driving motor, centrifugal pump. It provides the mathematical models of the PV cell and centrifugal pump. It then outlines the study, including modeling a DC motor-based PV pumping system and a single-phase induction motor-based system, experimental work, and feasibility study conclusions.
The document proposes a load shedding mechanism for intentional islanding of distribution systems with distributed generation. It describes intentional and unintentional islanding, presents a case study on the IEEE 33-bus system with seven distributed generators, and develops an algorithm for load shedding to balance generation and demand in isolated islands. Simulation results show the proposed mechanism can maintain stable frequency and voltage during different islanding scenarios by selectively disconnecting non-critical loads.
The document discusses the Newton-Raphson method for finding the solutions of nonlinear equations. It describes how the method uses Taylor series expansion to linearize the function around an initial guess. It then finds the next estimate as the initial guess minus the ratio of the function value to the derivative value. The method repeats this process iteratively until converging to a solution. Examples of applying Newton-Raphson to power flow problems are presented.
Gauss-Seidel is an iterative technique used to solve nonlinear equations. Power flow analysis is important for planning, economics, scheduling, and control of electric power systems to determine bus voltages, active and reactive line flows. It models different bus types including a slack bus, load buses, and generator buses. The total number of equations equals the number of P-Q and P-V buses to solve for bus voltages and line flows.
The document discusses hydrogen energy and fuel cells. It provides an introduction and history of fuel cells, explaining their theory of operation. It then discusses hydrogen production and storage methods. The document outlines the different types of fuel cells - alkaline, phosphoric acid, molten carbonate, proton exchange membrane, and solid oxide fuel cells - and compares their characteristics. It also covers fuel cell electrical properties, efficiency comparisons to other technologies, advantages and disadvantages, and applications. The overall document provides a comprehensive overview of hydrogen energy and the different aspects of fuel cells.
The document discusses optimal power flow analysis which is power flow analysis with an optimization objective such as minimizing fuel costs or transmission losses. It describes power flow analysis as determining the voltage magnitude and angle for each bus given load and generator conditions. Optimal power flow aims to satisfy nonlinear equality constraints from load flow equations and inequality constraints while optimizing an objective function such as fuel costs. Common solution methods include gradient, Newton-based, and linear programming approaches as well as intelligent methods like artificial neural networks.
DEEP LEARNING FOR SMART GRID INTRUSION DETECTION: A HYBRID CNN-LSTM-BASED MODELgerogepatton
As digital technology becomes more deeply embedded in power systems, protecting the communication
networks of Smart Grids (SG) has emerged as a critical concern. Distributed Network Protocol 3 (DNP3)
represents a multi-tiered application layer protocol extensively utilized in Supervisory Control and Data
Acquisition (SCADA)-based smart grids to facilitate real-time data gathering and control functionalities.
Robust Intrusion Detection Systems (IDS) are necessary for early threat detection and mitigation because
of the interconnection of these networks, which makes them vulnerable to a variety of cyberattacks. To
solve this issue, this paper develops a hybrid Deep Learning (DL) model specifically designed for intrusion
detection in smart grids. The proposed approach is a combination of the Convolutional Neural Network
(CNN) and the Long-Short-Term Memory algorithms (LSTM). We employed a recent intrusion detection
dataset (DNP3), which focuses on unauthorized commands and Denial of Service (DoS) cyberattacks, to
train and test our model. The results of our experiments show that our CNN-LSTM method is much better
at finding smart grid intrusions than other deep learning algorithms used for classification. In addition,
our proposed approach improves accuracy, precision, recall, and F1 score, achieving a high detection
accuracy rate of 99.50%.
Presentation of IEEE Slovenia CIS (Computational Intelligence Society) Chapte...University of Maribor
Slides from talk presenting:
Aleš Zamuda: Presentation of IEEE Slovenia CIS (Computational Intelligence Society) Chapter and Networking.
Presentation at IcETRAN 2024 session:
"Inter-Society Networking Panel GRSS/MTT-S/CIS
Panel Session: Promoting Connection and Cooperation"
IEEE Slovenia GRSS
IEEE Serbia and Montenegro MTT-S
IEEE Slovenia CIS
11TH INTERNATIONAL CONFERENCE ON ELECTRICAL, ELECTRONIC AND COMPUTING ENGINEERING
3-6 June 2024, Niš, Serbia
Literature Review Basics and Understanding Reference Management.pptxDr Ramhari Poudyal
Three-day training on academic research focuses on analytical tools at United Technical College, supported by the University Grant Commission, Nepal. 24-26 May 2024
A SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMSIJNSA Journal
The smart irrigation system represents an innovative approach to optimize water usage in agricultural and landscaping practices. The integration of cutting-edge technologies, including sensors, actuators, and data analysis, empowers this system to provide accurate monitoring and control of irrigation processes by leveraging real-time environmental conditions. The main objective of a smart irrigation system is to optimize water efficiency, minimize expenses, and foster the adoption of sustainable water management methods. This paper conducts a systematic risk assessment by exploring the key components/assets and their functionalities in the smart irrigation system. The crucial role of sensors in gathering data on soil moisture, weather patterns, and plant well-being is emphasized in this system. These sensors enable intelligent decision-making in irrigation scheduling and water distribution, leading to enhanced water efficiency and sustainable water management practices. Actuators enable automated control of irrigation devices, ensuring precise and targeted water delivery to plants. Additionally, the paper addresses the potential threat and vulnerabilities associated with smart irrigation systems. It discusses limitations of the system, such as power constraints and computational capabilities, and calculates the potential security risks. The paper suggests possible risk treatment methods for effective secure system operation. In conclusion, the paper emphasizes the significant benefits of implementing smart irrigation systems, including improved water conservation, increased crop yield, and reduced environmental impact. Additionally, based on the security analysis conducted, the paper recommends the implementation of countermeasures and security approaches to address vulnerabilities and ensure the integrity and reliability of the system. By incorporating these measures, smart irrigation technology can revolutionize water management practices in agriculture, promoting sustainability, resource efficiency, and safeguarding against potential security threats.
Understanding Inductive Bias in Machine LearningSUTEJAS
This presentation explores the concept of inductive bias in machine learning. It explains how algorithms come with built-in assumptions and preferences that guide the learning process. You'll learn about the different types of inductive bias and how they can impact the performance and generalizability of machine learning models.
The presentation also covers the positive and negative aspects of inductive bias, along with strategies for mitigating potential drawbacks. We'll explore examples of how bias manifests in algorithms like neural networks and decision trees.
By understanding inductive bias, you can gain valuable insights into how machine learning models work and make informed decisions when building and deploying them.
Using recycled concrete aggregates (RCA) for pavements is crucial to achieving sustainability. Implementing RCA for new pavement can minimize carbon footprint, conserve natural resources, reduce harmful emissions, and lower life cycle costs. Compared to natural aggregate (NA), RCA pavement has fewer comprehensive studies and sustainability assessments.
CHINA’S GEO-ECONOMIC OUTREACH IN CENTRAL ASIAN COUNTRIES AND FUTURE PROSPECTjpsjournal1
The rivalry between prominent international actors for dominance over Central Asia's hydrocarbon
reserves and the ancient silk trade route, along with China's diplomatic endeavours in the area, has been
referred to as the "New Great Game." This research centres on the power struggle, considering
geopolitical, geostrategic, and geoeconomic variables. Topics including trade, political hegemony, oil
politics, and conventional and nontraditional security are all explored and explained by the researcher.
Using Mackinder's Heartland, Spykman Rimland, and Hegemonic Stability theories, examines China's role
in Central Asia. This study adheres to the empirical epistemological method and has taken care of
objectivity. This study analyze primary and secondary research documents critically to elaborate role of
china’s geo economic outreach in central Asian countries and its future prospect. China is thriving in trade,
pipeline politics, and winning states, according to this study, thanks to important instruments like the
Shanghai Cooperation Organisation and the Belt and Road Economic Initiative. According to this study,
China is seeing significant success in commerce, pipeline politics, and gaining influence on other
governments. This success may be attributed to the effective utilisation of key tools such as the Shanghai
Cooperation Organisation and the Belt and Road Economic Initiative.
Harnessing WebAssembly for Real-time Stateless Streaming PipelinesChristina Lin
Traditionally, dealing with real-time data pipelines has involved significant overhead, even for straightforward tasks like data transformation or masking. However, in this talk, we’ll venture into the dynamic realm of WebAssembly (WASM) and discover how it can revolutionize the creation of stateless streaming pipelines within a Kafka (Redpanda) broker. These pipelines are adept at managing low-latency, high-data-volume scenarios.
3. Pg. 01 introduction
introduction
Industry Organization
The usual separation of the industry distinguishes among generation, transmission and
distribution. The Figure below illustrates the outlines of a competitive wholesale market
structure that follows this traditional three-part segmentation and emphasizes competition in
the generation market. The assumption here is that generation is a market with enough real or
potential participants to enforce workable competition. Either there are enough separate
generating companies to dilute any market power, or the individual generating units are under
long-term contracts with many customers such that the economic interest in the plants is
dispersed and there is competition in the short run. The need is to specify the minimum
elements in the remainder of the system necessary to support competition in generation.
EssentialFacilities
The competing generators must have access to the essential facilities that stand between them
and their potential customers in the wholesale market. The thrust of the Energy Policy Act of
1992 is that transmission is this essential facility and open access to the transmission system
is a necessary requirement for development and operation of a competitive market.
Genco Genco Genco GencoGenco Genco
Poolco
GridcoGridco
Competitive Wholesale Electricity Market Structure
Disco DiscoDisco Disco DiscoDisco
Cust. Cust. Cust. Cust. Cust.Cust.
4. Pg. 02 introduction
While there is no doubt that such access is required, there is more to transmission than simple
connection to the wires. Here the analogy to the case of natural gas pipelines is instructive.
There is far more to effective gas transmission access than simple connection to the interstate
natural gas pipeline. Movement of gas from producer to consumer includes an array of
services such as backup, storage, load balancing, scheduling, and so on. Access to these
essential services is as important as physical connection to the pipeline in providing a
competitive transmission opportunity for new entrants. If some participants in the market, such
as the pipeline companies, have access to these services, while other participants, such as
brokers, do not, then it is impossible to maintain the desired "level playing field" of competition.
This reality led eventually to the natural gas open access rules in FERC Order 636 which
required complete separation of the pipeline merchant function so that all participants in the
market would have the same access to the many services that make up the essential
monopoly facility.
Just as with natural gas, the essential facility of electricity transmission involves much more
than simple connection to the wires. The least obvious feature is the separation of the
transmission segment into Poolco and Gridco. The principal reason for the distinction is to
accommodate the most important implication of the technical characteristics of electricity
supply. In particular, the free-flowing grid requires coordination of short-term operations to
maintain system stability and achieve least-cost dispatch. This coordination function operates
most efficiently through a power pool which provides many services implicit in the economic
dispatch. The dispatch provides an automatic source of backup supplies, short term excess
sales, reactive power support, spinning reserve, and the many other services that are bundled
in transmission. Without equal access to these many functions, new participants in the market
will discover that they are at a competitive disadvantage relative to those who have access to
the full array of benefits of a power pool
Extentof Competition
Limitation of competition to include only the wholesale market is possible but is not necessary.
Implicit in the Figure is a separation of the wholesale and retail markets, with regulated
distribution companies purchasing in a competitive wholesale market but selling a bundled
product to franchise customers. However, once the essential facilities of the pool and the grid
are opened to all participants, the market could be extended to retail customers. In this case,
the wires component of the distribution business would be recognized as a natural monopoly
and an essential facility just as for the high voltage transmission grid. It would be less likely to
find a similar dispatch function at the distribution level, and the other elements of the
distribution function might be amenable to competitive market provision rather than bundled
5. Pg. 03 introduction
with wholesale electricity. This choice between wholesale and retail competition is a policy
matter. There is no inherent feature of electricity supply that dictates the choice, and any of an
array of combinations of open and restricted access would be possible.
Efficient Pricing
With all competing generators enjoying access to the pool dispatch, the natural requirement is
for equal pricing for equal services. In the traditional pool with only the vertically integrated
companies, average-cost pricing was consistent with the regulatory standard for cost recovery.
In the competitive market with third-party access, opportunity-cost pricing provides the
standard for consistent incentives and cost recovery in the short-run. Opportunity cost pricing in
the short run is a natural byproduct of an economic dispatch and guarantees the most efficient
use of the electrical system.
Long-Term Contracts
The availability of a transparent short-run market with opportunity-cost pricing furnishes the
ingredients for bilateral contracts that allocate risk and provide price certainty. In the presence
of the short-run market, many variations on the theme of contracts for price differences will
arise naturally. Suppliers with generation can sign contracts with customers and provide any
desired mix of fixed and variable prices over some extended period. In the day to-day operation
of the market, customers pay and generators receive the short-run opportunity cost. The
obligations under the long-term contract are met through strictly financial exchanges that
provide the economic equivalent of a specific supply from a specific source. But the contracts
need not and do not constrain the operation of the efficient dispatch. And the generation price
difference contracts do not require regulatory oversight.
Transmission Economics
In the face of transmission congestion, economic dispatch produces different short-run prices
at different locations. These locational prices capture in a simple form all the complexity of
transmission interactions. And just as for generation, these opportunity-cost prices provide the
incentives for investment in transmission to relieve congestion and gain access to lower cost
supplies. Unlike the case for generation, however, these locational prices do not create a
plausible bilateral mechanism for long-term contracts that allocate price risk. Only the pool
operator has the information necessary to create the corresponding long-term contracts for
price differences across locations. The contracts are multilateral in the sense that all users of
the pool affect transmission constraints, and everyone must make a partial payment to
compensate those who have paid for the economic benefit of the grid. Fortunately, the
payments and the information needed to provide such protection are available automatically as
part of the efficient pool dispatch with short-run opportunity-cost pricing. Hence a necessary
support for the full competitive market is to provide access to the pool and the grid, and for the
pool to operate a system of long-term transmission contracts that protect customer investment
in the grid. These transmission contracts are only for payment of price differences across
6. Pg. 04 introduction
locations, and carry no requirements for determining the actual use of the grid, which is left to
the efficient dispatch.
MarketImpacts
This outline of the competitive electricity market addresses most of the major economic
concerns raised in the discussion of regulatory reform. By definition the system maintains
economic dispatch and system stability. Access to the pool and short-run opportunity cost
pricing guarantee comparable service. The obligation to serve changes from one of assuring
average-cost supplies to assuring access to the grid and the pool dispatch. Reliability issues
change from matters of central planning focused on quantities to market choices based on
prices. The services are not firm or interruptible, but vary depending on the choices worked out
under market contracts. Opportunity costs are well defined and investment takes place when
the opportunity costs provide sufficient incentives for the participants in the market. Investment
decisions are made only in response to customer demands, and there is no regulatory
requirement to make generation or network investments without contracts from customers.
Transmission complexities are handled without appeal to contract paths, megawatt miles, or
wheeling in or out. Secondary markets can operate to assure flexibility and efficiency. Long-
term rights to the existing grid can be defined to assure protection of native load. And the
system can operate with advances in real-time pricing or minor modifications of existing
dispatch settlements systems.
In theory the competitive market outlined would continue to have problems with
freerides exploiting the economies of scale in the transmission grid. Furthermore, the design of
the competitive market would not overcome any violations of the assumptions such as market
power in generation. If there are social or environmental objectives that have been dealt with
through public utility regulation, rather than through taxes or broader based environmental
standards, then the competitive market model requires alternatives that focus on the reduced
remaining monopolies of the wires and dispatch services.
Transition
The transition problems of moving from the traditional regulatory model to a more competitive
market in electricity are a subject for further study. Although the competitive model does not
require a "big bang," certain features are essential. Access to the pool and opportunity cost
pricing seem to be minimal requirements. Price difference contracts for generation would arise
naturally. With any significant congestion, the pressure would rise for accompanying price
difference contracts for transmission, which would have to be created and administered by the
pool under regulatory oversight. Allocation of costs and rights for the existing system will
require creativity for equity, but with a secondary market there would be no significant impacts
on efficiency. Jurisdictional oversight need not require any legislative change, although various
existing authorities would have to agree de facto on the accepted framework.
Once the competitive market model is defined, it sets a target and a standard for
designing changes from the traditional status quo. The transition problems include many
7. Pg. 05 introduction
elements that must be considered simultaneously as part of an implementation strategy.
Consistency of the broad model and strategy will provide a framework that separates the few
necessarily revolutionary elements from the many more evolutionary changes. Analysis of the
transition alternatives should focus on open access and pricing rules that are essential for the
competitive goal, are feasible as a technical matter in electric networks, and are practical in
dealing with stranded assets and other changing economic impacts.
8. Pg. 06 COMPETITIVE MARKET
COMPETITIVE MARKET
By definition, optimal central planning and good regulation can produce an economical,
bundled electricity service. Likewise, a competitive market could achieve similar results. The
focus here is not to make an argument in favor of either approach. Rather, the assumption is
that the explicit policy choice has already been made and, along with the force of technological
change, is driving the electricity market towards greater reliance on competition. Because of the
special features of electricity supply, however, there are natural monopoly functions and
complete laissez faire competition is not desirable. Even though increased competition is
inevitable, therefore, the specifics of how to implement an efficient competitive market are neither
inevitable nor obvious. The purpose here is to outline the elements that will be critical in
developing a more competitive market.
The ideal case of the competitive market presumes a large number of competitors with no
barriers to entry or exit. Few markets meet all the conditions of the ideal case, with various
deviations in the nature of costs, number of real or potential participants, bundled products, or
possibilities for collusive behavior. In practice, the interest is in workable competition, not the
perfect case. And workable competition, compared to other realistic and less competitive
alternatives, may exist even in the absence of an ideal market. However, the ideal case
provides the simple benchmark where participants do not have market power in the sense of
being able to maintain sustained and substantial profits that would disappear with significant
new entry. Ultimately the competitive market model must be examined as to the degree of
workable competition that is feasible in the electricity market.
Electricity MarketStructure
One possible segmentation of the industry distinguishes those elements that could
conform to the competitive model and operate in a private market from those elements that are
likely to require some form of price and service regulation. The segments requiring continued
regulation isolate the special operating or investment characteristics of electricity and provide
the opportunity to examine the essential requirements in the essential facilities.
The usual separation of the industry distinguishes among generation, transmission and
distribution. Figure blew illustrates the outlines of a competitive wholesale market structure that
follows this traditional three-part segmentation and emphasizes competition in the generation
market. The assumption here is that generation is a market with enough real or potential
participants to enforce workable competition. Either there are enough separate generating
companies to dilute any market power, or the individual generating units operate under long-
9. Pg. 07 COMPETITIVE MARKET
term contracts with many customers such that the economic interest in the plants is dispersed
and there is competition in the short run. The need is to specify the minimum elements in the
remainder of the system necessary to support competition in generation.
While there is no doubt that such access is required, there is much more to
transmission than simple connection to the wires. Here the analogy to the case of natural gas
pipelines is instructive. There is far more to effective gas transmission access than simple
connection to the interstate natural gas pipeline. Movement of gas from producer to consumer
includes an array of services such as backup, storage, load balancing, scheduling, and so on.
Access to these essential services is as important as physical connection to the pipeline in
providing a competitive transmission opportunity for new entrants. If some participants in the
market, such as the pipeline companies, have access to these services and other participants,
such as brokers, do not, then it is impossible to maintain the desired "level playing field" of
competition. This reality led eventually to the natural gas open access rules in FERC Order 636
which required complete separation of the pipeline merchant function so that all participants in
the market would have the same access to the many services that make up the essential
monopoly facility.
Just as with natural gas, the essential facility of electricity transmission involves much more
than simple connection to the wires. With an eye towards identifying these analogous
components in the case of electricity, Figure 1 goes beyond the usual Genco, Transco, and
Disco trilogy. The least obvious feature is the separation of "Transco" into Poolco and Gridco.
GencoGencoGenco GencoGencoGenco
Poolco
GridcoGridco
DiscoDisco Disco Disco Disco Disco
Cust. Cust. Cust. Cust. Cust.Cust.
10. Pg. 08 COMPETITIVE MARKET
This choice is made in part with an eye towards the institutional structure of regulation in the
United States, where the Gridco(s) construction and maintenance of transmission wires might
be subject to state regulation and Poolco control of dispatch to regional or national
supervision. However, the principal reason for the distinction is to accommodate the most
important implication of the technical characteristics of electricity supply. In particular, the free-
flowing grid requires coordination of short-term operations to maintain system stability and
achieve least-cost dispatch. This coordination function operates most efficiently through a
power pool which provides many services implicit in the economic dispatch. The dispatch
provides an automatic source of backup supplies, short term excess sales, reactive power
support, spinning reserve, and the many other services that are bundled in transmission.
Without equal access to these many functions, new participants in the market will discover that
they are at a competitive disadvantage relative to those who have access to the full array of
benefits of a power pool.
To be effective, therefore, open access to transmission requires open access to the
essential facility of the pool dispatch. Although this dispatch coordination could be provided by
loosely coupled control centers, it would not be possible to allow unilateral or bilateral operating
decisions by all generators or customers connected to the system. Some form of multilateral
coordination is essential. For sake of the present discussion, this central operating control is
treated as the function of the dispatcher and it is easiest to describe Poolco as a single entity or
as a close coordination among a small number of entities.
Limitation of competition to the wholesale market is possible but is not necessary. Implicit in
Figure 1 is a separation of the wholesale and retail markets, with regulated distribution
companies purchasing in a competitive wholesale market but selling a bundled product to
franchise customers. However, once the essential facilities of the pool and the grid are opened
to all participants, the market could be extended to retail customers. In this case, the wires
component of the distribution business would be recognized as a natural monopoly and an
essential facility just as for the high voltage transmission grid. It would be less likely to find a
similar dispatch function at the distribution level. The other elements of the distribution function
might be amenable to competitive market provision rather than bundled with wholesale
electricity. This choice between wholesale and retail competition is a policy matter. There is no
inherent feature of electricity supply that dictates the choice, and any of an array of
combinations of open and restricted access are possible.
For ease in of the present discussion, it is convenient to outline the market structure
11. Pg. 09 COMPETITIVE MARKET
that encompasses a more fully unbundled potential, recognizing that a more limited version of
competition is possible in principle. As shown in Figure 2, this further segmentation separates
possibly competitive functions within generation and distribution. Not all these segments need
be distinct; competitive firms may operate in more than one segment as long as competition
remains. However, the key segments where technology dictates monopoly or close
coordination, separation of control or even ownership, and open access to essential facilities,
are indicated as the regulated activities subject to some form of continuing public oversight.
The market segmentation relies on a number of critical assumptions about the nature
of technology and the organization of ownership and control. Chief among these are:
• Economies of scale and scope in generation power plants are small relative to the
size of the market, and can be achieved as needed through joint ventures that leave
control dispersed. Ownership and control of generating assets is widely dispersed.
• Economies of scale and scope are very large for transmission and distribution wires,
which are natural monopolies and essential facilities. Regulation of construction and
operation of the wires is indicated.
12. Pg. 10 COMPETITIVE MARKET
• Central coordination of generation dispatch is essential to preserve the short-run
stability and integrity of the system. Economic dispatch is a natural monopoly and
regulation is indicated.
• All other services and products exhibit limited economies of scale or scope and could
be unbundled and provided by many competing entities.
These assumptions suggest a segmentation of the market into principal functions,
distinguished by the reliance on competition or the need for public regulation. The several
segments and their main features include:
Generation
Fuelco Purchases fuels for electricity generating plants. There are many
sellers and many buyers in regional and national markets.
Genco
Operates and maintains existing generating plants. The Gencos
interact with the short term market acting on behalf of the plant owners
to bid into the short-term power pool for economic dispatch. There are
many participants with existing plants and no barriers to entry for
construction of new plants.
Sellco Markets long-term power supply compensation contracts to provide
price hedges for customers and generators. May also participate in
decision making for development of new Gencos. There are many
participants and no barriers to entry.
Transmission
Poolco Dispatches existing generating plants and operates a short-term
market. Operates a system providing long-term transmission
compensation contracts. System control interactions require
monopoly operation or close coordination. This segment is regulated
to provide open access, comparable service and cost recovery.
Gridco Constructs and maintains the network of transmission wires. Network
interaction and scale economies call for monopoly provision and entry
barriers. This segment is regulated to provide non-discriminatory
connections, comparable service and cost recovery.
13. Pg. 11 COMPETITIVE MARKET
Distribution.
Buyco
Purchasing long-term power supply and transmission compensation
contracts for final customers. There are many potential participants and
no barriers to entry.
Lineco
Constructs and maintains distribution wires connecting transmission grid
to final customers. Network interactions and scale economies call for
monopoly provision and entry barriers. This segment is regulated to
provide non-discriminatory connections, comparable service and cost
recovery.
Disco
Provides services to final customers including connection and billing.
There are many potential entrants and no barriers to entry.
Within this framework, it’s possible in principle to organize all but three of the
segments as unregulated competitive markets. Although some of these segments, such as
generation, may have current ownership patterns which lead to concentration of control, this
condition is not dictated by the technology. For the three remaining segments--Poolco, Gridco,
and Lineco--the technology is such that for the foreseeable future there will be restricted entry
and necessary regulation of some form.
BrokecoMatches buyers and sellers as brokers of long-term power supply and
transmission compensation contracts. There are many potential
participants and no barriers to entry.