Mechanisms for efficient investments and optimal zones in regional power market

The paper is result of research different cross-border electricity trading mechanisms impact. Focus is on investments in generation and transmission power system facilities in regional market. Assumptions include efficient market coupling mechanism (with more bidding zones), use of additional investment indicators (like social welfare and congestion cost) and security of supply issues (capacity mechanisms). There is discussion on cost benefits analysis for particular market participants and there is possibility of risk reduction for regional power system expansion. It is shown current state-of-the-art, problems and trends in solving some aspects of market integration and investment issues. In some cases smaller and well defined bidding areas are absolutely essential in order to ensure system security and economic efficiency. There is no single criterion for power system expansion but it is possible to use combination of incentive schemes and possible through one index for cross-border trade. Risk management for cross-border electricity trading through several areas needs to be upgraded with use of financial transmission rights like weighted average area prices, respectively. Regional power system security is closely associated with timely investments in energy supply in line with economic development and environmental needs. Security of supply indicator is deriving an estimation of security of supply improvement from the market based simulation results when a generation or transmission investment project is implemented. All researched makes market integration and investments in Europe more efficient and gives more correct signals to market participants in regional market

Assessing Terrorist Threats For Energy Infrastructure By Combining Historical Data And Expert Judgments

Energy systems are relatively attractive targets for terrorist attacks and should be adequately protected. The quantitative risk analysis (QRA), with the threat assessment as one of its standard components, is considered to be a promising methodological framework for optimizing such protection. This paper presents the results of the research which consisted of two parts. In the first part the statistical analysis of the terrorist attacks towards energy systems was performed. The input data were derived from the Global Terrorism Database (GTD). Within the analysis relative contributions of the attacks on energy systems to the total number of attacks were determined. Also, it was examined how those contributions are influenced by various factors related to the characteristics of the target, terrorist group and the environment in which the group operates. In the second part of the research the method for the quantitative threat assessment was developed. It is based on the results of the performed statistical analysis (i.e. on historical data) and on expert judgments. The method is applicable to the electricity, gas and oil sectors. The implementation of the Bayesian networks allows for taking the uncertainties into consideration, as well as for easy modifying and updating

RISK-AVERSE APPROACH FOR ASSESSMENT OF INVESTMENT IN A RUN-OF-THE-RIVER POWER PLANTS WHILE CONSIDERING REDUCED WATER AVAILABILITY

Investment in the facility for harnessing a stream of water is usually characterized by long payback period. Hence investment choice not only needs to be optimal, but it also needs to be robust enough to cope with uncertainties which occur during payback period. In this research, a family of flow duration curves is created to model stochastic nature of water availability. The risk-constrained approach for assessment of investments in cascaded hydropower plants is proposed in a form of a mixed-integer linear programming. Proposed approach will manage a risk of large financial losses induced by these uncertainties. The project of run-ofriver power plants on the Sava river stretch (Croatia) from border with Slovenia to the city of Sisak is analyzed

THE REAL-TIME COORDINATION OF A WIND-HYDRO POWER GENERATION

This paper introduces the real-time coordination of the wind and hydro power plants in the case of a part of the Croatian Power System where hydro–wind coordination is represented by Vrataruša wind farm and Senj and Vinodol hydropower plants. The model uses real data which represent generation units that make the power system. Also, the paper describes the general problem which is specific for these type of energy sources. For modeling hydro-wind coordinated generation, the MATLAB/Simulink model is developed. Obtained results, rotor speed, an active and reactive power of wind power plant, voltages, rotor speed, rotor speed deviation, active output power, and stator current of a hydroelectric generator are presented and analyzed

THE REAL-TIME COORDINATION OF A WIND-HYDRO POWER GENERATION

This paper introduces the real-time coordination of the wind and hydro power plants in the case of a part of the Croatian Power System where hydro–wind coordination is represented by Vrataruša wind farm and Senj and Vinodol hydropower plants. The model uses real data which represent generation units that make the power system. Also, the paper describes the general problem which is specific for these type of energy sources. For modeling hydro-wind coordinated generation, the MATLAB/Simulink model is developed. Obtained results, rotor speed, an active and reactive power of wind power plant, voltages, rotor speed, rotor speed deviation, active output power, and stator current of a hydroelectric generator are presented and analyzed

REGULATION OF ELECTRICITY SUPPLY QUALITY AS A NECESSARY FUNCTION IN THE REGULATION OF MONOPOLY SERVICES

U članku se analiziraju nedostaci regulacije cijena usluga kao funkcije regulacije monopolne djelatnosti distribucije električne energije koja ne uključuje regulaciju kvalitete opskrbe električnom energijom. Nadalje, analizira se koncepcijski model uvođenja regulacije kvalitete opskrbe električnom energijom s posebnim osvrtom na pouzdanost opskrbe kao najznačajnije područje regulacije kvalitete opskrbe električnom energijom. Razvoj regulacije pouzdanosti opskrbe u konačnici omogućava uvođenje integralnog modela regulacije cijene usluga i kvalitete opskrbe električnom energijom. U članku se također daje prikaz iskustava mađarskog regulatornog tijela u sustavnom uvođenju regulacije cijena usluga te integriranju kvalitete opskrbe u model regulacije cijene usluga.The article analyzes the shortcomings of price regulation as a function in the regulation of the monopoly activity of electricity distribution that does not include the quality regulation of electricity supply. Also analyzed is a conceptual model for launching an electricity supply quality regulation system with special emphasis on the reliability of supply as the crucial aspect of supply quality regulation. Developing the continuity of supply regulation will ultimately facilitate the introduction of an integrated regulation model comprising electricity price and electricity supply quality. The article also describes the experiences of the Hungarian regulatory authority in step-by-step introduction of price regulation and in integration of supply quality into the price regulation model

DEPENDENCY OF RELIABILITY INDICES OF DISTRIBUTION NETWORK ON FINANCIAL INVESTMENTS IN THE NETWORK

Pouzdanost distribucijske mreže je temeljna sastavnica kvalitete opskrbe električnom energijom. Osnovna zadaća operatora mreže je planiranje i razvoj mreže kroz kontinuiranu izgradnju i financijska ulaganja u mrežu, radi postizanja odgovarajuće razine kvalitete opskrbe. U ovom radu je istražena i utvrđena, na primjeru jedne karakteristične distribucijske mreže, korelacijska ovisnost pokazatelja pouzdanosti distribucijske mreže o ukupnim financijskim ulaganjima u mrežu.Distribution network reliability is the basic integral part of electric power supply reliability. The main task of the network operator is the planning and development of a network through continuous construction and financial investments in the network, in order to achieve an adequate level of supply quality. This paper researches and defines the correlational dependency of distribution network reliability index on total financial investments in the network, based on the example of a characteristic distribution network

INFLUENCE OF THE OPERATION MANAGEMENT SYSTEM TYPE ON THE RELIABILITY OF DISTRIBUTION NETWORKS

Kvaliteta opskrbe električnom energijom značajno je određena s pouzdanošću razdjelnih mreža. Jedna od tehničkih mogućnosti za povećanje pouzdanosti razdjelnih mreža je primjena djelotvornog sustava za vođenje pogona. U ovom radu je istraženo i kvanitificirano potvrđeno da uvođenje elemenata automatizacije, a posebice sustava za upravljanje po dubini razdjelne mreže, značajno povećava pouzdanost mreže.The quality of electrical power supply is significantly determined by the reliability of distribution networks. One of the technical possibilities for an increase in the reliability of distribution networks is the usage of an efficient system for operation management. This paper researches and quantifies the confirmation that the introduction of automization elements, and especially a system for the management of the depth of a distribution network, significantly increases the reliability of the network

HYDROPOWER PLANT SIMULTANEOUS BIDING IN ELECTRICITY MARKET AND ANCILLARY SERVICES MARKETS

In a traditional environment, hydropower plant owners seek for minimum cost while in today deregulated environment goal function is profit maximization. Besides electricity only market, power producers can offer their services also in ancillary services markets. By doing so, it is possible to increase expected profit. This paper focuses on simultaneous hydropower plant biding in electricity and ancillary services markets, and purpose is to examine and verify effects of the proposed method on expected profit of hydropower plan owner. A mathematical model based on mixed integer programming approach is used. Head effect is also take into account with price-wise linear performance curves. Prices from real electricity markets and ancillary markets are used, and real hydropower system Lokve-Bayer in Croatia, with focus on hydropower plant Vinodol, is modelled. Obtained results show that there is a notable improvement in expected profit of hydropower plant if presented market bidding approach is used. It is also shown that hydropower plant Vinodol is capable for simultaneous bidding in different power markets

THE INFLUENCE OF RISK MANAGEMENT THEORIES ON THE USE OF DERIVATIVES IN THE ELECTRIC POWER INDUSTRY

Rad istražuje determinantne odluke o uporabi pojedinih vrsta energetskih izvedenica pri upravljanju rizikom promjena cijena električne energije u poduzećima članicama Europskog udruženja trgovaca energijom. Istraživanje je potaknuto visokom promjenljivošću cijena energenata na međunarodnim tržištima te značajnim gubicima u poslovanju koji su nastali zbog izloženosti poduzeća tim cjenovnim promjenama. Upravo ovi trendovi potiču da se upravljanju rizicima u energetskom sektoru danas posvećuje sve veća pozornost. U radu je testirana valjanost hipoteza vezanih uz opravdanost funkcije upravljanja rizicima i njezin utjecaj na povećanje vrijednosti poduzeća. Istražilo se utječu li navedene teorije, kao i određene karakteristike poduzeća poput zaduženosti, veličine, likvidnosti te vrijednosti ulaganja, na odluku o korištenju unaprijednica, ročnica, opcija ili zamjena kao instrumenata zaštite od rizika promjene cijene električne energije. Nalazi univarijantne i multivarijantne analize pokazali su da su poduzeća koja koriste cjenovne unaprijednice različita od poduzeća koja ih ne koriste i to s obzirom na veću razinu zaduženosti i veću vrijednost novih investicija. Stoga se može zaključiti da poduzeća, koja ulažu više sredstava u kapitalne investicije i pri tome koriste veće količine tuđeg kapitala, u većoj mjeri koriste cjenovne unaprijednice. S druge strane, zanimljiv je podatak da veličina poduzeća nije utjecajan čimbenik na odabir ovog instrumenta, čime se potvrđuje da je cjenovna unaprijednica instrument zaštite od rizika koji je u najširoj primjeni, kako među onim najvećim, tako i među manjim poduzećima. Također, indikativno je da se veličina poduzeća pokazala kao utjecajan čimbenik na odabir ročnice, zamjene i opcije kao instrumenata zaštite od rizika promjene cijene električne energije. Objašnjenje ovog rezultata treba potražiti u visokim troškovima uporabe ovih instrumenata pa zbog djelovanja ekonomije razmjera koja proizlazi iz marginalizacije troškova izvedenica u ukupnoj vrijednosti poduzeća, ove instrumente koriste samo najveća poduzeća iz uzorka.The work explores crucial decisions on the use of the specific types of derivatives in the electricity price risk management by the member companies of the European Federation of Energy Traders (EFET). The survey has been motivated by volatile fuel prices on international markets and significant losses incurred due to the exposure of companies to such volatility. These trends are the reason why increasing attention is devoted to risk management in the energy sector. The work tests the validity of the assumptions relating to the justification of the risk management function and its impact on corporate value increase. It has been investigated if these theories, as well as the specific corporate characteristics, such as indebtedness, size, liquidity and investment value, influence the use of forwards, futures, options or swaps as tools designed to offset the risk of energy price changes. The findings of univariant and multivariant analyses have shown that the companies using forwards differ from the companies not using them due to their greater indebtedness and higher value of new investments. It can thus be concluded that the companies which are more engaged in capital investment and in this use higher amounts of bonded capital tend to use forwards to a greater extent. On the other hand, it is interesting to note the fact that the size of a company does not play a major role in the choice of this tool, which confirms that forwards are a risk protection tool in the broadest use among big and small companies alike. Likewise, it is indicative that the size of a company has proved to be an influential factor in the choice of futures, swaps and options as tools created to offset the risks of energy price changes. An explanation for it should be sought in the high costs of using these tools, so that due to the effect of the economy of scale arising from the marginalisation of the costs of derivatives in total corporate value these tools are used only by the largest companies in the sample