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Research on capacity addition using market model with transmission congestion under competitive environment
Author(s) -
Katsura Yasufumi,
Attaviriyanupap Pathom,
Kataoka Yoshihiko
Publication year - 2012
Publication title -
electrical engineering in japan
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.136
H-Index - 28
eISSN - 1520-6416
pISSN - 0424-7760
DOI - 10.1002/eej.21013
Subject(s) - deregulation , electricity market , power market , industrial organization , electricity , electric power transmission , transmission (telecommunications) , electric power industry , market power , business , estimation , telecommunications , computer science , electric power system , environmental economics , reliability engineering , power (physics) , economics , engineering , electrical engineering , microeconomics , systems engineering , market economy , physics , quantum mechanics , monopoly
In this research, the fundamental premises for deregulation of the electric power industry are reevaluated. The authors develop a simple model to represent the wholesale electricity market with a highly congested network. The model is developed by simplifying the power system and market in the New York ISO based on available data for the New York ISO in 2004 along with some estimation. Based on the developed model and construction cost data from the past, the economic impact of transmission line addition on market participants and the impact of deregulation on power plant additions in a market with transmission congestion are studied. Simulation results show that market signals may fail to facilitate proper capacity additions and results in the undesirable overconstruction and insufficient construction cycle of capacity addition. © 2011 Wiley Periodicals, Inc. Electr Eng Jpn, 178(3): 11–20, 2012; Published online in Wiley Online Library ( wileyonlinelibrary.com ). DOI 10.1002/eej.21013