Potential impact of load curtailment on the day-ahead Iberian market : a preliminary analysis

ABSTRACT: Demand response (DR) in electricity markets may offer a variety of financial and operational benefits. Typically, customers respond to DR events by adopting curtailment and shifting strategies. This article focuses on the former strategy and assumes that consumers are encouraged to avoid consuming electricity during specific hours of a 24 h day, because the energy price is above a given threshold. It presents a study on the Iberian market, conducted with the help of an agent-based simulation tool, called MATREM. The results are very favorable to the adoption of the load curtailment strategy (as a consequence of the enrollment in different DR programs).info:eu-repo/semantics/publishedVersio

Quantifying the increasing sensitivity of power systems to climate variability

Large quantities of weather-dependent renewable energy generation are expected in power systems under climate change mitigation policies, yet little attention has been given to the impact of long term climate variability. By combining state-ofthe-art multi-decadal meteorological records with a parsimonious representation of a power system, this study characterises the impact of year-to-year climate variability on multiple aspects of the power system of Great Britain (including coal, gas and nuclear generation), demonstrating why multi-decadal approaches are necessary. All aspects of the example system are impacted by inter-annual climate variability, with the impacts being most pronounced for baseload generation. The impacts of inter-annual climate variability increase in a 2025 wind-power scenario, with a 4-fold increase in the inter-annual range of operating hours for baseload such as nuclear. The impacts on peak load and peaking-plant are comparably small. Less than 10 years of power supply and demand data are shown to be insuffcient for providing robust power system planning guidance. This suggests renewable integration studies - widely used in policy, investment and system design - should adopt a more robust approach to climate characterisation

Game-Theoretical, Strategic Forward Contracting in the Electricity Market

Forward sales is a credible commitment to aggressive spot market bidding, and it mitigates producers market power in electricity markets. Still it can be profitable for a producer to make such a commitment if it results in a soft response from competitors in the spot market (strategies are substitutes). The optimal contracting level of a risk-neutral producer is determined by the extent to which strategies are substitutes and the slope of the residual demand in the forward market. Conditions under which strategies are substitutes are identified for a two-stage game with supply function competition and capacity constrained producers

Decentralized Energy Supply and Electricity Market Structures

Small decentralized power generation units (DG) are politically promoted because of their potential to reduce GHG-emissions and the existing dependency on fossil fuels. A long term goal of this promotion should be the creation of a level playing field for DG and conventional power generation. Due to the impact of DG on the electricity grid infrastructure, future regulation should consider the costs and benefits of the integration of decentralized energy generation units. Without an adequate consideration, the overall costs of the electricity generation system will be unnecessarily high. The present paper analyses, based on detailed modelling of decentralized demand and supply as well as of the overall system, the marginal costs or savings resulting from decentralized production. Thereby particular focus is laid on taking adequately into account the stochasticity both of energy demand and energy supply. An efficient grid pricing system should then remunerate long-term grid cost savings to operators of decentralized energy production or/and charge long-term additional grid costs to these operators. With detailed models of decentralized demand and supply as well as the overall system, the marginal costs or savings resulting from decentralized production are determined and their dependency on characteristics of the grid and of the decentralized supply are discussed