Electricity market-clearing prices and investment incentives: The role of pricing rules

Energy Economics

Volumn 47, Issue , 2015, Pages 42-51

  Herrero, Ignacio ^a   Rodilla, Pablo ^a   Batlle, Carlos ^a,b,c  

^a Universidad Pontificia Comillas   (Spain)

^b MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

^c Florence School of Regulation   (Italy)

Author keywords

Electricity market design; Long term capacity expansion; Marginal pricing

Indexed keywords

COMMERCE; COMPUTATION THEORY; COSTS; ECONOMICS; ELECTRIC INDUSTRY; EXPANSION; RENEWABLE ENERGY RESOURCES;

CAPACITY EXPANSION; ELECTRICITY MARKET DESIGN; GENERATION TECHNOLOGIES; INVESTMENT INCENTIVES; LONG-TERM INVESTMENT; MARGINAL PRICING; RENEWABLE ENERGY SOURCE; WHOLESALE ELECTRICITY MARKETS;

INVESTMENTS;

ELECTRICITY SUPPLY; ENERGY MARKET; INVESTMENT INCENTIVE; POLICY IMPLEMENTATION; POWER GENERATION; RENEWABLE RESOURCE;

EID: 84918563521     PISSN: 01409883     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.eneco.2014.10.024     Document Type: Article

References (24)

1. Baldick R., Helman U., Hobbs B.F., O'Neill R.P. Design of efficient generation markets. Proc. IEEE 2005, 93:1998-2012. 10.1109/JPROC.2005.857484.
2. Batlle C. Electricity generation and wholesale markets. Chapter of the Book Regulation of the Power Sector 2013, Springer. I.J. Pérez-Arriaga (Ed.).
3. Batlle C., Rodilla P. An enhanced screening curves method for considering thermal cycling operation costs in generation expansion planning. IEEE Trans. Power Syst. 2013, 28(no. 4):3683-3691. (Nov. 2013).
4. Black, Veatch Cost and performance data for power generation technologies. Prepared for the National Renewable Energy Laboratory 2012, February 2012, (Available at bv.com/docs/reports-studies/nrel-cost-report.pdf).
5. FERC (Federal Energy Regulatory Commission) Order Conditionally Accepting Tariff Revisions 2012, (Docket No. ER12-668-000. July 20, 2012).
6. Gollmer R., Nowak M.P., Römisch W., Schultz R. Unit commitment in power generation-a basic model and some extensions. Ann. Oper. Res. 2000, 96:167-189.
7. Gribik P.R., Hogan W.W., Pope S.L. Market-Clearing Electricity Prices and Energy Uplift 2007, Harvard University.
8. Hogan W.W., Ring B.J. On Minimum-uplift Pricing for Electricity Markets 2003, Electricity Policy Group.
9. ISO-NE (ISO New England) Section III, Market Rule 1. Appendix F. Net Commitment Period Compensation Accounting Jan-23-2014 Available at. http://www.iso-ne.com.
10. Kumar N., Besuner P., Lefton S., Agan D., Hilleman D. Power Plant Cycling Costs 2012, Intertek APTECH, (Available at www.nrel.gov. April 2012).
11. MISO BPM (Business Practices Manual) 005 - Market Settlements 10/17/2013 Available at. http://www.misoenergy.org.
12. MISO Schedule 29A. ELMP for Energy and Operating Reserve Market: Ex-Post Pricing Formulations November 19, 2013 Available at. http://www.misoenergy.org.
13. Morales-España G., Latorre J.M., Ramos A. Tight and compact MILP formulation for the thermal unit commitment problem. IEEE Trans. Power Syst. 2013, 28(no. 4):4897-4908. (Nov. 2013).
14. NYISO (New York Independent System Operator) NYISO Accounting and Billing Manual. Version 3.1. Effective Date: 10/31/2013 Available at. http://www.nyiso.com.
15. O'Neill R.P., Sotkiewicz P.M., Hobbs B.F., Rothkopf M.H., Stewart W.R. Efficient market-clearing prices in markets with non-convexities. Eur. J. Oper. Res. 2005, 164(1):269-285.
16. Palmintier B., Webster M. Impact of unit commitment constraints on generation expansion planning with renewables. Power and Energy Society General Meeting, 2011 IEEE 2011, 1-7. (24-29 July 2011).
17. Pérez-Arriaga I.J., Meseguer C. Wholesale marginal prices in competitive generation markets. IEEE Trans. Power Syst. 1997, 12(2):710-717.
18. Phillips D., Jenkin F.P., Pritchard J.A.T., Rybicki K. A mathematical model for determining generating plant mix. Proceedings of the Third IEEE PSCC, Rome 1969.
19. Ring B.J. Dispatch based pricing in decentralised power systems 1995, 213. (Ph.D, Thesis Dissertation), University of Canterbury.
20. Ruiz C., Conejo A.J., Gabriel S.A. Pricing non-convexities in an electricity pool. IEEE Trans. Power Syst. 2012, 7:1334-1342.
21. SEMO Trading and Settlement Code v14.0 Available at:. http://www.sem-o.com/MarketDevelopment/Pages/MarketRules.aspx.
22. Shortt A., Kiviluoma J., O'Malley M. Accommodating variability in generation planning. IEEE Trans. Power Syst. 2013, 28:158-169. 10.1109/TPWRS.2012.2202925.
23. Vázquez C. Modelos de casación de ofertas en mercados eléctricos. Institute for Research in Technology 2003, (PhD (in Spanish)), Comillas Pontifical University.
24. Veiga A., Rodilla P., Batlle C. Intermittent RES-E, cycling and spot prices: the role of pricing rules. Working Paper IIT, Submitted to Electric Power Systems Research 2013, (Available at: www.iit.upcomillas.es/batlle/).