Dissertations / Theses on the topic 'Electricity market design'

The electric power grid forms the foundation for several other critical infrastructures of national importance such as public health, transportation and telecommunication systems, to thrive. The current power grid runs on the century-old technology and faces serious challenges of the 21st century - Ever-increasing demand and the need to provide a sustainable way to meet the growing demand, increased requirement of resilience against man-made and natural disasters, ability to defend against cyber attacks, increasing demand for reliable power, requirement to integrate with alternate energy generation and storage technologies. Several countries, including the United States, have realized the immediate need to modernize the grid and to pursue the goal of a smart grid. Majority of recent grid modernization efforts are directed towards the distribution systems to be able to meet these new challenges. One of the key enablers of a fully functional Smart Grid are microgrids â subsystems of the grid, utilizing small generation capacities at the distribution system level to increase the overall reliability and power quality of the local grid. It is one of the key directions recommended by national electric delivery technologies roadmap in United States as well as policy makers for electricity delivery in many countries. Microgrids have witnessed serious research activity in the past few years, especially in areas such as multi-agent system (MAS) architectures for microgrid control and auction algorithms for microgrid electricity transaction. However, most of the prior research on electricity transaction in microgrids fails to recognize and represent the true nature of the microgrid electricity market. In this research, a comprehensive microgrid electricity market has been designed, taking into account several unique characteristics of this new market place. This thesis establishes an economic rationale to the vision of wide-scale deployment of microgrids serving residential communities in near future and develops a comprehensive understanding of microgrid electricity market. A novel concept of Community Microgrids is introduced and the market and business models for electricity transaction are proposed and validated based on economic forecasts of key drivers of distributed generation. The most important contribution of this research deals with establishing a need for a trustworthy model framework for microgrid market and introducing the concept of reputation score to market participants. A framework of day-ahead energy market (DAEM) for electricity transaction, incorporating an approach of using the reputation score to incentivize the sellers in the market to be trustworthy, has been designed and implemented in MATLAB with a graphical user interface (GUI). Current implementation demonstrates a market place with two sellers and nine buyers and is easily scalable to support multiple market participants. The proposed microgrid electricity market may spur the deployment of residential microgrids, incorporating distributed generation, thereby making significant contribution to increase the overall reliability and power quality of the local grid.
Master of Science

Spain’s rapid implementation of renewable energy has been described as a success but thegovernmental cost associated to this rapid implementation has grown significantly. The purposeof this report is to investigate Spain’s electricity market, its current situation and present it, usingthe Swedish system as a reference.The report commences with a presentation of the Spanish and the Swedish electricity markets,followed by a chapter where they are compared. The renewable electricity production and theassociated development during the last decade is one focus of the comparison. The other focus ishow the costs of the subsidy systems have evolved and how they are connected to the differentenergy sources. Two sources, wind and solar, receives a higher interest than the others.Wind power shows a strong development in electricity production and contributes to asignificant part of the Spanish electricity mix. The costs of subsidies connected to the windpower reflect the produced electricity. Wind power in Sweden has had a rapid development overthe last two years and the subsidies costs are aligned with the electricity production through theuse of a quota system.There are great differences between the two countries regarding solar power. Sweden has hardlyany, while Spain has a noticeable contribution of electricity from solar power to its electricitymix. Solar power has an even more noticeable share in the Spanish subsidy system. The highsubsidies to solar power, which have not followed the reduced investment costs of equipment inrecent years, have led to a high degree of participation which has led to soaring costs for thesystem. Spain’s subsidy system is based on fixed earnings and variable costs and in combinationwith higher than expected costs, an annual deficit between the earnings and cost has been createdfor the government. This yearly deficit has increased and the Spanish government is now in debtto the five largest energy suppliers. The Swedish subsidy system carries its own costs and theSwedish government does not have a financial risk associated with the system.This study shows that the Spanish subsidy system has been too generous towards solar powerwhich is a large part, but not the only one, to the country’s huge deficit and debt. Sweden, withits quota system constructed without fixed earnings, does not risk creating a debt similar toSpain’s. Spain’s large part of wind power and how the volatile power is regulated could be ofinterest for Sweden which aims to increase its share of wind power in the future. This study findthe answer to how Spain copes with its high share of intermittent power production in that itaccepts a lower efficiency in its gas turbines in order to regulate the power output. Sweden, acountry without a large share of gas in its electricity mix, but with a large share of hydro power,uses its hydro capacity to regulate volatility in electricity system. Prior studies have already beenmade in this area with the result that 30 TWh of electricity from wind power, more thanSweden’s goal for 2020 regarding wind power, would be possible to regulate with the presentsystem each year.

The future electricity grid is likely to be increasingly complex and uncertain due to the introduction of new technologies in the grid, the increased use of control and communication infrastructure, and the uncertain political climate. In recent years, the transactive energy market framework has emerged as the key framework for future electricity market design in the electricity grid. However, most of the work done in this area has focused on developing retail level transactive energy markets. There seems to be an underlying assumption that wholesale electricity markets are ready to support any retail market design. In this dissertation, we focus on designing wholesale electricity markets that can better support transactive retail market. On the highest level, this dissertation contributes towards developing tools and models for future electricity market designs. A particular focus is placed on the relationship between wholesale markets and investment planning. Part I of this dissertation uses relatively simple models and case studies to evaluate key impediments to flexible transmission operation. In doing so, we identify several potential areas of concern in wholesale market designs: 1. There is a lack of consideration of demand flexibility both in the long-run and in the short-run 2. There is a disconnect between operational practices and investment planning 3. There is a need to rethink forward markets to better manage resource adequacy under long-term uncertainties 4. There is a need for more robust modeling tools for wholesale market design In Part II and Part III of this dissertation, we make use of mathematical decomposition and agent-based simulations to tackle these concerns. Part II of this dissertation uses Benders Decomposition and Lagrangian Decomposition to spatially and temporally decompose a power system and operation problem with active participation of flexible loads. In doing so, we are able to not only improve the computational efficiency of the problem, but also gain various insights on market structure and pricing. In particular, the decomposition suggests the need for a coordinated investment market and forward energy market to bridge the disconnect between operational practices and investment planning. Part III of this dissertation combines agent-based modeling with state-machine based modeling to test various spot, forward, and investment market designs, including the coordinated investment market and forward energy market proposed in Part II of this dissertation. In addition, we test a forward energy market design where 75% of load is required to be purchased in a 2-year-ahead forward market and various transmission cost recovery strategies. We demonstrate how the different market designs result in different investment decisions, winners, and losers. The market insights lead to further policy recommendations and open questions. Overall, this dissertation takes initial steps towards demonstrating how mathematical decomposition and agent-based simulations can be used as part of a larger market design toolbox to gain insights into different market designs and rules for the future electricity grid. In addition, this dissertation identifies market design ideas for further studies, particularly in the design of forward markets and investment cost recovery mechanisms.

Deploying wind power to a larger extent is one solution to reduce negative environmental impacts of electric power supply. However, various challenges are connected with increasing wind power penetration levels. From the perspective of transmission system operators, this includes balancing of varying as well as - to some extent - uncertain generation levels. From the perspective of power generating companies, changes in the generation mix will affect the market's merit order and, hence, their profits. This thesis focuses on provision and use of flexibility in the Nordic electricity market. First, this thesis studies wind power variations and accuracy of wind power forecasts in Sweden using statistical methods. Even though today’s wind penetration levels are still low in Sweden, power systems and electricity markets have to cope with these characteristics of variations and forecast errors to a larger extent in future. Second, it investigates to which extent an increased exchange and use of flexibility that is available in the intraday time-frame could efficiently facilitate system balancing and whether this would also be profitable from the power generating companies' perspective. Here, a simulation model is developed that reflects important aspects of production planning and trading decisions in the intraday time-frame. In a first case study, it is shown that the benefits of internal rescheduling strongly depend on the costs to adjust production plans in the intraday time-frame as compared to real-time. In a second case study, it becomes evident that trading flexibility in the intraday time-frame can reduce the need for system balancing more efficiently than internal rescheduling within each balance responsible party. Motivated by the positive gains of intraday trading and the challenge of appropriately modelling continuous intraday markets, trading activity and price development on Elbas is investigated. The results provide insights into trading behaviour on a continuous intraday market and show that trading is not always in accordance to the power system's physical situation. To the extent to which better information and adaptations in the market design could improve the market participants' base for trading decisions, policy recommendations and further research questions areas suggested.
Att använda vindkraft i en större utsträckning är en möjlighet att minska elproduktionens negativa miljöpåverkan. Det finns dock också olika utmaningar med stora mängder vindkraft. Från ett systemperspektiv gäller det till exempel att hålla balansen mellan tillförsel och konsumtion av el. Från elproducenternas perspektiv bör vindkraftens påverkan på elmarknaden nämnas eftersom det påverka aktörernas vinster. Avhandlingen titta närmare in i hur man kan få tillgång till mer flexibilitet på produktionssidan. Avhandlingen består av tre delar. För det första undersöks variationer och prognosfel av vindkraft i Sverige med hjälp av statistiska metoder. Även om andel vindkraft hittills är låg i Sverige, behöver elsystemet och elmarknader i framtiden hantera samma egenskaper av själva variationer och prognosfel som idag men i en större utsträckning. För det andra undersöks hur den flexibiliteten som finns i tidshorisonten några timmar innan leveranstimmen kan utnyttjas för att integrera vindkraften på ett sätt som är både fördelaktigt från systemets och från aktörernas perspektiv. Undersökningen sker med hjälp av en simuleringsmodell som omfattar viktiga delar i produktionsplanering och intradayhandel. I en fallstudie uppvisas att vinster av intern omplanering är i högsta grad beroende på kostnadsskillnaden mellan omplanering några timmar innan leveranstimmen och anpassning av körscheman under själva leveranstimmen. Resultat av ytterligare en fallstudie uppvisar att det är betydligt billigare och mer effektivt att använda intradayhandel istället för intern omplanering för att utnyttja den befintliga flexibiliteten och för att reducera obalanser som systemoperatörer annars behöver ta hand om under leveranstimmen. Detta är en anledning till att undersöka handelsmönster på Elbas som är en intradaymarknad med kontinuerlig handel. En annan anledning till den här tredje delen är utmaningarna i att modellera kontinuerlig intradayhandel. Studien beskriver handelsaktiviteten på Elbas och hur priserna utvecklas under handelstiden. Ett resultat är att handeln inte alltid återspeglar den fysiska situationen i elsystemet. I den utsträckningen som ett snabbare informationsflöde och förändringar i marknadsdesignen kunde förbättrar aktörernas underlag för intradayhandel, föreslås förbättringar och öppna forskningsfrågor.

QC 20150911

Elektra 36141: Korttidsplanering av vatten-värmekraftsystem vid stora mängder vindkraft: System-perspektivet

Efforts towards a low carbon economy are challenging the electricity industry. On the supply-side, centralised carbon-intensive power plants are set to gradually decrease their contribution to the generation mix, whilst distributed renewable generation is to successively increase its share. On the demand-side, electricity use is expected to increase in the future due to the electrification of heating and transport. Moreover, the demand-side is to become more active allowing end-users to invest in generation and storage technologies, such as solar photovoltaics (PV) and home batteries. As a result, some network reinforcements might be needed and instrumentation at the users’ end is to be required, such as controllers and home energy management systems (HEMS). The electricity grid must balance supply and demand at all times in order to maintain technical constraints of frequency, voltage, and current; and this will become more challenging as a result of this transition. Failure to meet these constraints compromises the service and could damage the power grid assets and end-users’ appliances. Balancing generation, although responsive, is carbon-intensive and associated with inefficient asset utilisation, as these generators are mostly used during peak hours and sit idle the rest of the time. Furthermore, energy storage is a potential solution to assist the balancing problem in the presence of non-dispatchable low-carbon generators; however, it is substantially expensive to store energy in large amounts. Therefore, demand response (DR) has been envisioned as a complementary solution to increase the system’s resilience to weather-dependent, stochastic, and intermittent generation along with variable and temperature-correlated electric load. In the domestic setting, operational flexibility of some appliances, such as heaters and electric cars, can be coordinated amongst several households so as to help balance supply and demand, and reduce the need of balancing generators. Against this background, the electricity supply system requires new organisational paradigms that integrate DR effectively. Although some dynamic pricing schemes have been proposed to guide DR, such as time of use (ToU) and real-time pricing (RTP), it is still unclear how to control oscillatory massive responses (e.g., large fleet of electric cars simultaneously responding to a favourable price). Hence, this thesis proposes an alternative approach in which households proactively submit DR offers that express their preferences to their respective retailer in exchange for a discount. This research develops a computational model of domestic electricity use, and simulates appliances with operational flexibility in order to evaluate the effects and benefits of DR for both retailers and households. It provides a representation for this flexibility so that it can be integrated into specific DR offers. Retailers and households are modelled as computational agents. Furthermore, two market-based mechanisms are proposed to determine the allocation of DR offers. More specifically, a one-sided Vickrey-Clarke-Groves (VCG)-based mechanism and penalty schemes were designed for electricity retailers to coordinate their customers’ DR efforts so as to ameliorate the imbalance of their trading schedules. Similarly, a two-sided McAfee-based mechanism was designed to integrate DR offers into a multi-retailer setting in order to reduce zonal imbalances. A suitable method was developed to construct DR block offers that could be traded amongst retailers. Both mechanisms are dominant-strategy incentive-compatible and trade off a small amount of economic efficiency in order to maintain individual rationality, truthful reporting, weak budget balance and tractable computation. Moreover, privacy preserving is achieved by including computational agents from the independent system operator (ISO) as intermediaries between each retailer and its domestic customers, and amongst retailers. The theoretical properties of these mechanisms were proved using worst-case analysis, and their economic effects were evaluated in simulations based on data from a survey of UK household electricity use. In addition, forecasting methods were assessed on the end-users’ side in order to make better DR offers and avoid penalties. The results show that, under reasonable assumptions, the proposed coordination mechanisms achieve significant savings for both end-users and retailers, as they reduce the required amount of expensive balancing generation.

Thesis (S.M.)--Massachusetts Institute of Technology, Computation for Design and Optimization Program, 2010.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 119-121).
With ever rising concerns regarding global warming and other dangerous effects of CO2 , there had been efforts to reduce CO2 emissions all around the world by adopting more efficient technologies and alternate green or carbon neutral fuels. However, these technologies require large investments and hence to make them economically viable there should be suitable incentives from the government in form of emission regulatory policies such as carbon taxation and carbon cap-and-trade policy. In this research, a simulation study was carried out to analyze the impact of different carbon emission regulatory policies including cap-and-trade policy and carbon taxation policy on the utilities of various stakeholders of the electricity market. An agent based simulation approach was used to model the market where each market stakeholder was represented as an autonomous agent. We use the simulation model to compare the effectiveness of cap-and-trade policy and taxation policy in achieving emission reduction targets. We observe significant windfall profit for electricity producers under the cap-and-trade policy. Therefore for the same emission level the cost to consumers is higher under cap-and-trade policy as compared to taxation policy. Our results suggest that cap-and-trade policy might be ineffective in emission reduction when the market is not fully efficient. Moreover the simplicity of Taxation model gives government a better control on emissions. Based on our study we recommend that the present model be extended to more efficient cap and trade mechanisms by incorporating multistage periods, auctioning of carbon emission permits and carbon emission permits banking.
by Sandeep Tiwari.
S.M.

The power balance of an electrical power system is crucial to the quality of the delivered electricity as well as the security of supply. In a scenario where Swedish nuclear power plants are being phased out and replaced by renewable energy sources new constraints are added to the power balance equation since the production of many renewable energy sources, such as wind and solar power, are intermittent by nature. This leads to a situation where the currently available regulating power might have difficulties to manage the increasing frequency fluctuations in the power grid. One possible solution to the problem is to build gas turbines for the purpose of peak power generation capacity. An alternative option would be to increase customer flexibility; that is Demand Response. This master thesis investigates how the market for Demand Respond can be designed and which potential Demand Response volumes different policy programs might release. This is done through a mixed approach. Firstly, a scientific review of previously documented Demand Response experiences compares and categorizes different Demand Response programs in a typology based on the parameters cost, volume and feasibility. Subsequently an interview series with different market agents, predominantly through interviews with the Swedish energy intensive industry, identifies the existing Demand Response potential in Sweden and offers the paradigm needed to transfer the results to a future hypothetical situation. The typology of Demand Response programs and estimation of the future industrial Demand Response potential in Sweden are the main new knowledge contributions of this master thesis. The scope however is limited to the Swedish market geographically and focuses on the time horizon 2020-2050. It is also assumed that only existing technologies are likely to be implemented on a large scale over the given time horizon. The results of this master thesis suggest that a Real Time Pricing model would realize the largest potential of Demand Response and to a relatively low cost. This solution however requires actions and further development of both the pricing model and in technology. Firstly, all market agents must have free access to real time price information, something that is lacking today. Secondly, a smart grid with hourly meters is required. If policymakers consider security of supply to be more important than a low system cost, Direct Control or a continuation of the Strategic Reserve is to be preferred according to the conclusions of this report. Previous studies have placed the existing potential for industrial Demand Response in Sweden between 600 and 900 MW. This report suggests that the available volume is in the upper region of the mentioned interval already today and has potential to rise significantly in the future as industries become more aware of the concept and the transmission grid is becoming more flexible. Another driving force for increased Demand Response volumes are the increased price fluctuations which are expected as a consequence of a greater share of renewable energy sources. For the future Demand Response potential, a cost perspective is introduced and a distinction between different response durations is made. More specifically the results indicate that the potential industrial Demand Response volume will be about 1,500 MW in 2030, given a response duration time of 4 h and a spot price on 2,000 SEK/MWh. If 1,500 MW of peak generation capacity could be avoided through active Demand Side Management, it would reduce the system cost with about 350 Million SEK annually. Consequently, there is a business case for Demand Response and the issue is likely to be subject to further investigation and discussion in the future. On the long term however industrial Demand Response must be compared with other flexibility options, e.g. as import/export or energy storages but also residential Demand Response, and is in such case likely to be outcompeted due to its relatively high variable cost of providing capacity.

The Swedish electricity system is transitioning due to the establishment of climate policy goals and trends related to technology and demographics. The transition has resulted in an increased demand for electricity. The increased demand for electricity in combination with lack of forecasts, planning and coordination between actors in the electricity sector has led to the occurrence of grid congestion. Extending the network is time-consuming and requires substantial investments. Instead, an alternative is to utilise the available grid capacity more efficiently by implementing flexibility solutions. Flexibility can be achieved by implementing incentives such as grid tariffs. This solution has recently gained much attention in Sweden, but it is not apparent how grid tariffs should be designed. The purpose of this thesis is to investigate how distribution grid tariffs could be designed to incentivise different actors to contribute to flexibility in a way that results in an efficient use of the electrical grid. A qualitative study was performed, collecting empirical data through semistructured interviews with actors in the Swedish electricity market. The aim is that the results from this thesis will act as a basis for DSOs planning to design grid tariffs with the purpose to utilise the grid more efficiently. The findings present a ToU capacity charge with off-peak periods that are free of charge as the preferable main price signal in the tariff to achieve efficient utilisation of the grid. It is further argued that other structural elements can complement the ToU capacity charge. A small fixed charge could be added in order to contribute to the cost reflectiveness of the grid tariff. A small energy charge could be incorporated in order to provide consumer with incentives to be flexible below the current metered maximum power and strengthen the signal from the ToU capacity charge. A small energy charge can avert difficulties related to providing incentives below the current metered maximum, as it still can provide some incentives to be flexible, or strengthen the signal from the ToU capacity charge. Further, the energy charge can ensure sustainability if customers respond well to a ToU capacity charge and to compensate solar PV customers. Furthermore, recommendations to further enable the grid tariffs potential to provide price signals include shifting the focus of the revenue cap from CapEx to OpEx and exploring the hampering signals of the energy tax as well as contradicting price signals from the wholesale electricity price.
Det svenska elsystemet genomgår en förändring till följd av införandet av klimatmål och trender relaterade till teknik och demografi. Denna förändring har resulterat i ett ökat effektbehov. Ett ökat effektbehov i kombination med bristande prognostisering, planering och samordning mellan aktörer inom elsektorn har lett till uppkomsten av kapacitetsbrist. Att bygga ut elnätet är tar tid och kräver större investeringar. Ett alternativ är att istället utnyttja det befintliga elnätet mer effektivt genom att implementera flexibilitetslösningar. Flexibilitet kan uppnås genom att införa incitament i form av elnätstariffer. Denna lösning har nyligen fått mycket uppmärksamhet i Sverige, men det är inte klart inte hur dessa elnätstariffer ska utformas. Syftet med detta arbete är att undersöka hur distributionsnätets tariffer kan utformas för att stimulera olika aktörer att bidra med flexibilitet på ett sätt som resulterar i en effektiv användning av det befintliga elnätet. En kvalitativ studie genomfördes där empiriska data samlades in genom semistrukturerade intervjuer med aktörer på den svenska elmarknaden. Syftet är att resultaten från detta arbete ska fungera som ett underlag för nätägare som planerar att utforma elnätstariffer med syftet att utnyttja nätet mer effektivt. Resultaten visar att en ToU-effektavgift med gratis off-peak perioder bör vara den huvudsakliga prissignalen i en elnätstariff som ämnar att utnyttja det befintliga nätet mer effektivt. Det visar även att andra strukturella element kan komplettera ToU-effektavgiften. En mindre fast avgift kan adderas i syfte att göra elnätstariffen mer kostnadsriktig. En mindre energiavgift kan införas för att ge kunder incitament att vara flexibla även under den nuvarande uppmätta maximala effekten och stärka signalen från ToU-effektavgiften. Vidare kan energiavgiften säkerställa tillräckliga intäkter för nätägaren om kunderna svarar bra på en ToU-effektavgift och för att kompensera kunder med solceller. Ytterligare rekommendationer för att möjliggöra prissignaler genom elnätstariffer inkluderar att skifta fokus på intäktsramen från CapEx till OpEx och utforska de hämmande prissignalerna från energiskatten och de motstridiga prissignalerna från elhandelspriset.

Cette thèse s'intéresse à plusieurs aspects des marchés de gros de l'électricité. L'achat et vente d'électricité se négocient sur les marchés à terme et sur le marché day-ahead. Sur ce dernier se pratique un type d'enchère très spécifique, où les enchères des acteurs prennent la forme de fonctions d'offre et de demande. Chapitre 2 prend comme point de départ un résultat de Zachmann et von Hirschhausen (2008) qui constatent une réponse asymétrique du prix de gros de l'électricité en Allemagne au changement du prix des permis d'émission négociable ( EUA ). Cependant, en contradiction avec les résultats existants, il est démontré que l'asymétrie a disparu suite à la publication d'un rapport d'enquête par l'autorité de la concurrence. Chapitre 3 porte sur l'interaction des marchés à terme et day-ahead dans un jeu d'oligopole répété. L'effet du marché à terme sur la stabilité des collusions est étudié dans le cas où les stratégies sur le marché spot prennent la forme des fonctions d'offre. Il est démontré que la simple existence d'un marché à terme peut élargir l'intervalle des valeurs du facteur d'actualisation pour lesquelles la collusion est soutenable. Chapitre 4 examine si une réaction asymétrique au changement du prix du C02 est également présente dans les fonctions d'offre du marché d'électricité day-ahead. À cette fin, les outils de l'analyse des données fonctionnelles sont adoptés et appliquées à des données des enchères. Chapitre 5 développe un test pour l'auto-corrélation dans un panel d'observations fonctionnelles. Une simulation Monte-Carlo montre une bonne puissance du test dans des échantillons de taille habituellement utilisé dans la recherche appliquée
This thesis addresses aspects of interacting markets in electricity wholesale. Electricity is traded in forward markets and in day-ahead auctions, which implement a very specifie market design. The bids of market participants take the fonn of supply and demand functions. Chapter 2 builds upon a finding of Zachmann and von Hirschhausen (2008) who report an asymmetric response of electricity wholesale prices for Gennany to changes in the price of EV Emission Allowances (EVA). ln contrast to the fonner contribution, it is shown that the asymmetry disappeared in response to a report on investigations by the competition authority. Chapter 3 addresses the interaction offorward markets and day-ahead auctions in a repeated oligopoly game. The effect offorward trading on the sustainability of collusion is studied for the case that spot market strategies take the fonn of supply functions. It is shown that the existence of forward markets enlarges the range of discount factors for which collusion can be sustained. Chapter 4 examines if an asymmetric reaction to EVA prices can also be found in the supply functions from the day-ahead market. To this end, tools from the field of functionaJ data analysis are adopted and applied to observed bids from the day-ahead auction. Chapter 5 develops a test for autocorrelation in functional panel data. Asymptotic nonnality of the statistic is proved, and Monte-Carlo simulation sho\l good power of the test in sample sizes which frequently prevail in applied research

O atual desenho de mercado do Setor Elétrico Brasileiro (SEB) está apresentando uma série de problemas em seu funcionamento, destacando: (i) sustentabilidade econômica e financeira; (ii) sinal de preços; e (iii) complexidade técnica e regulatória. Esta combinação de problemas diminui a eficiência econômica e resulta em um ambiente de negócios inadequado e que não permite a correta alocação de custos e riscos. Todavia, apesar dos problemas apontados destaca-se que entre as ferramentas do SEB estão os Leilões de Energia, os quais são internacionalmente reconhecidos como eficazes na atração de investimentos e na segurança do suprimento. Assim, visando solucionar os problemas identificados no SEB, este estudo tem como objetivo propor um novo desenho de mercado de energia elétrica no Brasil com a utilização de leilões como principal elemento alocativo, introduzindo elementos que aprimorem a contratação de energia elétrica e a operação do SIN. Como um segundo objetivo, apresenta-se os fundamentos teóricos de leilões e de desenho de mercados de energia elétrica, visando uma base sólida e consistente nas proposições, a qual faça sentido para aqueles que desejam analisar e avançar sobre o tema. O novo desenho de mercado proposto considera a criação de um Mercado de Capacidade segregado do Mercado de Energia e a separação da parcela fio e comercialização da Distribuidora, sendo que a comercialização seria caracterizada como uma Loading Service Entity (LSE). A criação do Mercado de Capacidade manteria a liberdade da política energética e resolveria a questão da segurança do suprimento do SIN, sendo que isto combinado com a criação das LSEs permitiria a liberalização de 100% dos consumidores no Mercado de Energia. A operação do SIN também sofreria alteração, migrando do atual modelo de tight pool para um modelo de loose pool, no qual se estabelecem leilões competitivos para a operação do SIN. Um ponto crítico para o sucesso do novo desenho de mercado é o período de transição, e considerando a complexidade do SEB recomenda-se que este processo seja organizado e com previsibilidade de ações, para qual estima-se um período de 72 meses. Ao final, o novo desenho de mercado do SEB busca a eficiência econômica e a correta alocação de riscos, com um ambiente de negócios mais organizado e que esteja em condições de igualdade com os mercados de energia elétrica mais desenvolvidos.
The current Brazilian market design of electricity sector (SEB) is showing many problems, and I point out three severe ones: (i) Economic and financial sustainability; (ii) Poor price signal; (iii) Technical and regulatory complexity. These three problems combined diminish the allocative efficiency and create an unfriendly business environment, which distorts the cost and risk allocation. Brazil has a strong tradition in electricity auctions, highlighting those auctions are internationally recognized as an effective tool in attracting new investments and assuring supply adequacy. Therefore, the primary goal of this study is to present a new Brazilian electricity market design that uses auctions as the main allocative mechanism, including the introduction of features that improve the efficiency of the system and grid operations, as well. The second goal is to organize and present the auction and market design theory in Portuguese, providing a reference to others that want to research and study the theme. The proposal of a new market design splits the Capacity from Energy, and Grid Services from Commercialization in Distributors\' market, observing that the Distributors Commercialization part would be allocated in a Loading Service Entity (LSE). The creation of a Capacity Market would keep the energy policy room and address the supply adequacy concern, and this market combined with LSEs would allow the liberalization of all consumers to choose their suppliers. The Grid Operation also would be modified from a tight pool model to a loose pool model, and the new model would include auctions as the main allocation mechanism. One critical point to the success of a new Brazilian market design is the transition process; especially due to the complexity of SEB this study proposes a 72-month transition process. In the end, the new Brazilian market design will seek for more economic efficiency and a correct risk allocation, creating a better-organized business environment on par with conditions in more advanced electricity markets.

This thesis analyses the necessity for the establishment, main functions and the viability of the Turkish Wholesale Electricity Trading and Contracting Company, TETAS in the short, mean and the long term. In order to understand the necessity for the establishment of TETAS, Turkish Energy Policies such as the state-led energy policies and the competition based market orientation are put under scrutiny. The thesis also discusses whether Turkish Government has carried out a comprehensive, deterministic and effective &ldquo
Liberalization Policy&rdquo
in the electricity sector by looking at the present situation and the principles outlined in Laws No: 4628, 5654 and 5686 and the Strategy Paper. The dissertation then examines the life span of TETAS by looking at the impacts of the strategy paper, liberalization procedure of the overall electricity market and newly enacted laws such as Law No: 5654 and 5686 in the short, mean and the long term. In addition, TETAS is examined whether it is a &ldquo
monopoly&rdquo
or not in Turkish Electricity wholesale market by calculating the supply concentration of TETAS using the Herfindahl Hirschman Index. Despite the studies on the establishment of the liberal market such as the envisagement of Law No: 4628 and the strategy paper, this thesis study envisages that it is still not possible to talk about a liberal electricity market. In addition, it is also concluded that the statements outlined in Laws No: 5654 and 5686 hinder the overall liberalization efforts since these laws are postponing the liberalization of electricity sector and making the life span of TETAS longer. As a result, liberalization efforts on the electricity market are unsuccessful in the mean term and TETAS seems to hold its dominance position in the wholesale market as a state-owned wholesale trading company in the long run.

The main purpose of this study is to examine the effects of job design and sales managers’ behavior on intrinsic motivation and customer orientation of salespeople. Furthermore, we aim to examine if any of the factors included in our model have an effect on performance of Company X’s salespeople. Thus, our research questions are:  What impacts do job design and sales managers’ behaviors have on intrinsic motivation and customer orientation of salespeople? What kind of differences exist between high- and low performance sales teams considering these factors? Our study has been carried out on commission for Company X where we studied their Customer Service salespeople, which are working in a business to consumer context in the Swedish electricity market. The study makes theoretical contributions to motivation research in the field of Selling and Sales management by developing and testing a conceptual model with a unique combination of motivating variables. Our model was inspired by Hackman and Oldham’s (1980) Job Characteristics Model, but we extended this model and added organizational variables that had not been examined in relation to this model by prior research. Thus, no previous research has, to our knowledge, tested the effects of our chosen variables of job design and sales managers behavior on intrinsic motivation and customer orientation. To deepen our study and our understanding of what effect our variables of job design and sales managers behavior have on performance, we received secondary data from Company X. This additional data analysis enabled us to compare whether there were differences across our key variables between sales teams with high performance and low performance. We adopted a quantitative strategy and data collection method. Thus, we distributed questionnaires to our target population – salespeople working in Company X Customer Service. Both primary and secondary data were entered and processed by the statistical analysis program SPSS. On our primary data we performed Cronbach's alpha tests, cross-tabulations, bivariate regression analysis and multiple regression analysis to test hypothesized effects. Our secondary data in combination with our primary data were analyzed by a two-sample t-test to identify differences between high-, and low performance teams. Our hypotheses were partially supported and findings showed that the critical psychological states: experienced meaningfulness and experienced responsibility had positive effects on intrinsic motivation. Experienced responsibility in combination with role ambiguity had positive effects on customer orientation. Similarly, intrinsic motivation was found to affect customer orientation. The other variables of job design and sales managers’ behavior were not found to have significant effects on intrinsic motivation and customer orientation. Variables affecting performance were coaching; positive behavioral feedback and role ambiguity, and they differed significantly between high-, and low performance teams. Our study provides practical recommendations for Company X and other companies in the electricity market. Our findings can be used to improve marketing strategies and motivation of salespeople in other business to consumer contexts.

The European policy focus on smart grids implies their development as an indispensable part of the future power system. However, the definition of a smart grid is broad and vague, and the actual implementation of a smart grid can differ significantly, depending on the stakeholders involved.This work aims to inform policy makers, the electricity industry and researchers about stakeholder interests and the technical complexities involved by presenting smart grids via a techno-institutional framework. This framework takes account of the technical nature of the electricity transport and supply service as well as the institutional nature of electricity markets, stakeholder perspectives and sector regulation. In addition, this work presents potential revenues resulting from flexibility management in smart grids and proposes a way forward for smart grids and flexibility management in Europe.

QC 20170925

The electricity high voltage transmission networks are interconnected over most of the continents but this is not the case of the power system organizations. Indeed, as described with the concept of integrated power system, the organization over these large networks is divided by several kinds of internal borders. In this context, the research object, the cross-border coordination of operation, is a set of coordination arrangements over internal borders between differing regulatory, technical and market designs. These arrangements can include for instance the famous market couplings, some cost-sharing agreements or common security assessments among several other solutions. The existence and improvement of the cross-border coordination of operation can be beneficial to the whole integrated power system. This statement is verified in the European case as in 2012 where several regional and continental coordination arrangements are successfully implemented.In order to benefit from the European experience and contribute to support the European improvement process, this thesis investigates the cross-border coordination of operation in the European case with four angles of study. First, a modular framework is built to describe the existing solutions and the implementation choices from a regulatory point of view. Second, the thesis analyses the tools available to assess the impact of an evolution of the cross-border coordination. Third, the role of the European Union (EU) is described as critical both for the existing arrangements and to support the improvement process. The last angle of study focuses on two dimensions of the economic modes of coordination between transmission system operators.

Suite aux réformes des marchés électriques, la question du market design, c’est-à-dire l’étude des nouveaux marchés destinés à remplacer l’ancien monopole, est devenue centrale dans la littérature économique. Toutefois, les caractéristiques techniques de l’électricité rendent cette tâche complexe et l’intervention des pouvoirs publics est souvent nécessaire pour établir les règles du jeu efficaces que les acteurs de marché devront suivre. Cela explique pourquoi le market design demeure un sujet d’actualité. Cette thèse contribue aux discussions actuelles en étudiant plusieurs architectures de marché à mettre en place afin d’assurer la fiabilité du système électrique de la façon la plus efficace.La fiabilité est d’abord étudiée sous sa dimension de court terme, appelée sûreté. Pour garantir un équilibre en temps réel, l’opérateur du système doit s’assurer de disposer d’un niveau suffisant de réserves: c’est l’objectif du modèle de sûreté. Dans cette thèse, les impacts économiques induits par un changement de modèle de sureté pour le système électrique français sont évalués. Une modélisation de type Agent-Based est développée pour simuler les décisions des acteurs sur plusieurs marchés de court terme. Les résultats montrent que le modèle de sureté français actuel conduit à des coûts inférieurs à ceux du modèle alternatif mis en œuvre dans d’autres pays européens. Le maintien du modèle actuel en France apparait donc justifié.La dimension long terme de la fiabilité, à savoir l’adéquation, est ensuite étudiée. Les performances économiques d’un marché de capacité et d’un mécanisme de réserve stratégique, deux solutions conçues pour résoudre le problème d’adéquation, sont comparées. Afin de considérer la nature cyclique des investissements, ces mécanismes sont étudiés d’un point de vue dynamique par l’intermédiaire d’une modélisation de type System Dynamics. Celle-ci simule les décisions d'investissements et de fermetures prises par les acteurs de marché, en considérant leurs comportements imparfaits. Les principaux résultats montrent que le marché de capacité résout la question de l'adéquation à un coût moindre
Following power market reforms, market design, i.e. the study of new markets to replace efficiently the previous monopoly, becomes central in the economic literature. However, due to several technical characteristics of electricity, this task is complex. A third party is then required to help design these markets in an efficient way and to set the rules under which private decentralized market players will interact. This complexity explains why market design remains a work in progress. This thesis contributes to the current discussions by giving insights on the most efficient market designs to implement to ensure the reliability of power systems.A first focus is made on the short-term dimension of reliability, i.e. the security of power systems. To maintain a balanced system, the system operator has to ensure the availability of a sufficient level of reserves in real time: this is the aim of the security model. In this thesis, a quantitative assessment of the economic impacts that a transition to a different security model would have for the French power system is carried out. An agent-based modelling is developed to simulate the decisions of profit-maximizing players on several short-term markets. Simulations show that the current French security model results in lower costs than the alternative one implemented in several European countries, and should therefore be maintained for the French power system.A second focus is made on the long-term dimension of reliability, i.e. the adequacy. The economic performances of a capacity market and a strategic reserve mechanism, two mechanisms designed to solve the adequacy issue, are compared. In order to capture the cyclical nature of investments, these mechanisms are studied from a dynamic point of view. To this end, a long-term model is developed based on a System Dynamics approach. It simulates the investment and shutdown decisions made by market players considering their imperfect behaviours. Main results show that the capacity market solves the adequacy issue at a lower cost than the strategic reserve mechanism

In this thesis, we investigate the effects of the electricity market clearing mechanisms on the cost of integrating intermittent resources such as wind. We present a linear supply function equilibrium model of a conventional two settlement electricity market clearing mechanism. We then provide examples of markets for which large-scale wind integration can increase steady state cost of generation and decrease expected social welfare. These counter-intuitive examples lead us to analyse in depth mechanisms that appear to efficiently cater for uncertainty. Recently an alternative so-called stochastic settlement market has been proposed (see e.g. Pritchard et al. [80] and Bouffard et al. [30]). In such a market, the ISO co-optimizes pre-dispatch and spot in one single settlement market. By considering all possible demand realizations ahead of time, pre and spot dispatch is deemed to be scheduled more efficiently. In this thesis we consider simplified models for both stochastic settlement and conventional two settlement market clearing mechanisms. Our models are targeted towards analyzing imperfectly competitive markets. We demonstrate that the stochastic settlement market clearing mechanism can always outperform the two settlement mechanism for symmetric generators. However, we also present an example of an asymmetric market in which, contrary to intuition, the two settlement mechanism yields higher social and consumer welfare in equilibrium. Even though the stochastic settlement mechanism outperforms the two settlement mechanism most of the time, implementing such a system requires extra costs. Thus, we also present results of an empirical study to estimate the value of the stochastic settlement mechanism for New Zealand electricity market. We extend our analysis to hypothetical wind investments in the future.

In the context of distributed generation growth, local grids could face operational issues. In that sense, smart grid deployment will give information to local grid operators about grid status at medium and low voltage levels for taking operational decisions on daily­ basis. This thesis presents local markets as a potential solution to avoid local grid congestions and over-costs. They mainly increase the negotiation power of end-users with distributed energy resources and allow activation of flexibility at local level. First of all, this thesis analyses electric vehicles as a potential challenge for distribution grids and electricity markets in case of uncontrolled charging as it could cause consumption peaks. At the same time, electric vehicles could be part of the solution thanks to their capability of shifting forward their consumption. The first solution presented in this thesis is a building level electric vehicle management algorithm in order to reduce energy cost and consumption peaks. However, local grid operators need a solution to deal with aggregated level problems like high demand or high generation periods. Such kind of problems vary over time and place, and they could be difficult to integrate in regular grid tariffs. Therefore, the present thesis provides two local market designs for these problems. The first local market presented is designed for taking advantage of renewable energy producers before and after the whole-sale day-ahead market without threatening distribution grids and increasing the local social welfare. However, this market implies significant regulatory changes because the local market operator should take sorne of the current local grid operator regulated activities. Therefore, this thesis presents a second market design for managing portfolios of consumers, producers and prosumers, and it could be operated by retailers, balance responsible parties or aggregators for flexibility provision without regulatory issues. The work includes a description of roles, contracts and interactions of such local flexibility market, and three optimization algorithms depending on the application, complexity and portfolio scale. The first algorithm assumes limited information about each site, the second one includes such information but presents potential scalability limitations, and the last algorithm is based on a decomposition method to optimise the aggregator portfolio in a distributed way reducing the computational burden and time.
En el context d'expansió de generadors d'electricitat renovable i distribuïda, les xarxes de distribució podrien presentar problemes d'operació. A més a més, en un context de desplegament de la xarxa elèctrica intel·ligent, les companyies distribuïdores tindran un millor coneixement de l'estat de la xarxa per prendre decisions d'operació en el dia a dia tant a nivell de mitja com en baixa tensió. Els mercats locals constitueixen una possible solució per a la resolució de congestions a les xarxes de distribució d'electricitat i reduir els sobre costos del sistema elèctric. Aquests mercats també permetrien incrementar el poder de negociació dels consumidors d'electricitat a petita escala amb capacitat de flexibilitat. Primerament s'analitza el potencial perill que poden suposar els vehicles elèctrics per a les xarxes de distribució en cas de no haver-hi gestió intel·ligent dels processos de carrega ja que podrien aparèixer nous pics de consum. Alhora, els vehicles elèctrics podrien ser part de la solució desplaçant el seu consum a la nit. El present treball inclou un algorisme de gestió de vehicles elèctrics a nivell d'edifici per a reduir el cost d'electricitat i els pics de consum. No obstant, les companyies distribuïdores necessiten una solució per als problemes de la xarxa que podrien ser diferents segons la zona o l'època de l'any. Es per això que aquest treball inclou dues propostes de mercat local per a aquests problemes. El primer mercat local esta dissenyat per a aprofitar l'avantatge dels productors d'energia renovable abans i després del mercat diari majorista sense comprometre l'operació de la xarxa de distribució. Tot i aixó, aquesta proposta de mercat local requeriria diversos canvis en matèria de regulació ja que l'operador del mercat local hauria de prendre algunes de les actuals responsabilitats de les companyies distribuïdores. Seguidament, la tesi presenta un segon mercat local per gestionar una cartera de consumidors, productors i prosumidors, com una activitat més dins de les activitats de les companyies comercialitzadores o agregadors de flexibilitat. El present document inclou una descripció dels rols, contractes i interaccions, i tres algorismes d'optimització des del més simple fins al més complex. El primer assumeix una limitació en la informació disponible de cada membre de la cartera, el segon inclou més informació però presenta limitacions d'escalabilitat, i finalment el tercer presenta un algorisme de descomposició per optimitzar la flexibilitat de manera distribuïda i així reduir el temps de computació i la complexitat de càlcul.

This dissertation is dedicated to study the design and utilization of financial contracts and pricing mechanisms for managing the demand/price risks in electricity markets and the price risks in carbon emission markets from different perspectives. We address the issues pertaining to the efficient computational algorithms for pricing complex financial options which include many structured energy financial contracts and the design of economic mechanisms for managing the risks associated with increasing penetration of renewable energy resources and with trading emission allowance permits in the restructured electric power industry. To address the computational challenges arising from pricing exotic energy derivatives designed for various hedging purposes in electricity markets, we develop a generic computational framework based on a fast transform method, which attains asymptotically optimal computational complexity and exponential convergence. For the purpose of absorbing the variability and uncertainties of renewable energy resources in a smart grid, we propose an incentive-based contract design for thermostatically controlled loads (TCLs) to encourage end users' participation as a source of DR. Finally, we propose a market-based approach to mitigate the emission permit price risks faced by generation companies in a cap-and-trade system. Through a stylized economic model, we illustrate that the trading of properly designed financial options on emission permits reduces permit price volatility and the total emission reduction cost.

Les mécanismes de capacité (CRM) sont instaurés pour aligner l’équilibre de marché avec l’optimum social, c’est-à dire assurer la sécurité d’approvisionnement au moindre coût. Sur le plan théorique, les marchés energy-only sont censés atteindre cet objectif, mais leur efficacité est mise en doute. Si le bien-fondé de la qualification des CRMs comme mécanisme optimal de second rang occupe les chercheurs depuis plusieurs décennies, l’évaluation empirique des CRMs a reçu une attention beaucoup plus limitée. Cette lacune constitue un domaine de recherche académique fertile, mais limite la capacité de chacun à transposer les résultats théoriques en termes d’élaboration de politiques publiques. L’évaluation empirique des CRMs est d’autant plus nécessaire que leur performance dépend non seulement de paramètres structurels, techniques et culturels spécifiques à chaque pays, mais aussi des détails de leur mise en œuvre. A ce titre, cette thèse présente le premier travail traitant de la performance empirique des CRMs ainsi que des choix de mise en œuvre réglementaire. L’étude de la convergence relative des designs des CRMs depuis les années90 permet l’identification des caractéristiques indispensables à leur succès quand les divergences de résultats dans la littérature quantitative existante aident à prendre la mesure des défis futurs restants. Le coût net d’une telle intervention sur le marché est aussi discuté à l’aide d’une approche économétrique trans-nationale. Enfin, les préférences des agents quant à la précision de l’information sur les obligations de capacité sont abordées dans un modèle analytique
Capacity remuneration mechanisms (CRMs) are widely implemented as an attempt of correcting the real-world imperfections of electricity markets and aligning market outcomes with social optimality. Mainly, many observers doubt theability of the EOM to provide sufficient investment incentives to ensure the security of supply, and CRMs are expected to mitigate the risk of failure. Unfortunately, the numerous real world experiences have led to limited academic publications.In addition, the abundant theoretical literature fails to deliver clear take away messages with respect to the performance ofCRMs in real life conditions. The empirical assessment of CRMs is all the more necessary as their performance depends on a number of country-specific, structural, technical and behavioral parameters, as well on the details of implementation that structure the incentives. Reducing the literature gap from both ends, this doctoral thesis represents the first attempts to empirically discuss CRM performance and design choices. It provides a conceptual reflection on the evolution of CRM designs over time (Chapter 1) and discusses the divergences existing in the quantitative literature (Chapter 2). It also contributesto the discussion on the net cost of such intervention thanks to an econometric cross-country analysis (Chapter4). From a theoretical stand point, an analytical model analyses the preferences for the precision of information available under different capacity market designs (Chapter 3)

La transition énergétique, en partie caractérisée par le déploiement massif des énergies renouvelables, a relancé un débat de longue date sur les architectures de marché fournissant les meilleures incitations aux investissements dans les marchés libéralisés de l’électricité. Ces incitations sont essentielles pour garantir la sécurité d’approvisionnement à long terme. Pour choisir l’architecture de marché adéquate, les décideurs publics doivent évaluer et comparer les performances économiques des solutions disponibles. La présente thèse complète la littérature sur les incitations aux investissements et la sécurité d’approvisionnement en étudiant trois aspects importants : (i) le comportement des marchés de l'électricité en présence d’acteurs averses au risque, (ii) la compatibilité entre les incitations des acteurs à mettre leurs actifs sous cocon et les objectifs de sécurité d’approvisionnement et (iii) les performances économiques de différentes architectures de marché dans un contexte de forte pénétration des énergies renouvelables. Pour ce faire, une modélisation de type System Dynamics est utilisée pour représenter les dynamiques de long terme résultant des décisions des acteurs dans un marché libéralisé. La thèse est organisée en trois chapitres correspondant à chacun des points mentionnés ci-dessus. Les principaux résultats sont les suivants : Premièrement, les mécanismes de capacité sont nécessaires pour faire face aux effets néfastes de l’aversion au risque des investisseurs. Ce phénomène affecte de manière significative les marchés de l’énergie de type energy-only, qui subissent alors une baisse des investissements et des pénuries plus importantes. Les marchés de capacité résistent mieux à l’aversion au risque des investisseurs. Cependant, cette résilience dépend du plafond des prix dans les enchères de capacité. Pour qu'une telle architecture de marché donne des résultats satisfaisants en termes de sécurité d’approvisionnement, ce plafond de prix doit tenir compte du risque d'investissement supporté par les acteurs. Deuxièmement, si les acteurs du marché en ont la possibilité, leurs décisions de mettre leurs actifs sous cocon peuvent modifier les dynamiques d'investissement et de fermeture à long terme. En outre, dans un monde caractérisé par des actifs indivisibles, cette possibilité augmente le niveau de coordination nécessaire pour assurer la sécurité d’approvisionnement. Cela est particulièrement vrai pour les marchés de type energy-only, dans lesquels la mise sous cocon augmente le niveau des pénuries, au point de contrebalancer les économies de coûts qu’elle génère. En revanche, les marchés de capacité peuvent fournir la coordination nécessaire pour assurer la sécurité d’approvisionnement même lorsque les acteurs ont la possibilité de mettre leurs actifs sous cocon. Troisièmement, parmi les architectures de marché proposées dans la littérature, les marchés de capacité apparaissent comme la meilleure solution du point de vue du surplus social. Néanmoins, du point de vue des investisseurs, et dans certaines conditions liées à une forte pénétration des énergies renouvelables, les marchés de capacité avec des contrats annuels ne suppriment pas entièrement le problème dit de "missing money". Les résultats indiquent que l'attribution de contrats de capacité pluriannuels atténue le problème
The ongoing energy transition, partly characterized by the massive deployment of renewables, has reignited a long-lasting debate on the best market design options to provide adequate investment incentives and ensure capacity adequacy in liberalised electricity markets. To choose the appropriate market design, policymakers need to assess and compare the economic performances of available solutions in terms of effectiveness and cost-efficiency. This dissertation complements the existing literature on market design for long-term capacity adequacy by focusing on three research topics: (i) understanding how electricity markets perform under different assumptions regarding investors’ risk preferences, (ii) analysing the compatibility of private agents’ incentives to mothball capacity resources with security of supply objectives and (iii) assessing the economic performance of different market designs in a context of a high penetration of renewables. To this end, the System Dynamics modelling framework is applied to represent long-term dynamics resulting from private agents’ decisions in liberalised electricity markets. The dissertation is organised in three chapters corresponding to each of the topics mentioned above. The main results are outlined below. Firstly, capacity remuneration mechanisms are necessary to deal with the detrimental effects of investors’ risk aversion. Energy-only markets are significantly affected by this phenomenon as they experience reduced investment incentives and higher levels of shortages. Capacity markets are more resilient to private investors’ risk aversion. However, this resilience depends on the level of the price cap in the capacity auctions. For such a market design to provide satisfactory outcomes in terms of capacity adequacy, this price cap should account for the investment risk faced by market participants. Secondly, when market participants have the possibility to mothball their capacity resources, these mothballing decisions can potentially modify investment and shutdown dynamics in the long run. Furthermore, in a world with capacity lumpiness (i.e. indivisibilities), mothballing increases the level of coordination needed to ensure capacity adequacy. This is especially true in energy-only markets, where mothballing increases the level of shortages to an extent that seems to overweigh the cost savings it generates at system level. Capacity markets can provide the required coordination to ensure capacity adequacy in a world with mothballing. Thirdly, among proposed market designs in the literature, capacity markets appear as the preferable solution to ensure capacity adequacy from a social welfare point of view. Nevertheless, from a private investor’s perspective and under certain conditions related to high penetration of renewables, capacity markets with annual contracts do not entirely remove the so-called “missing money” problem. The results indicate that granting multiannual capacity contracts alleviates the problem

A nivell mundial les energies renovables han crescut de forma considerable al llarg d'aquestes dues últimes dècades, havent substituït parcialment als combustibles fòssils en àmbits tals com la generació elèctrica. Una aposta tan àmplia per aquest tipus d'energies només s'explica des del punt de vista de les importants i creixents avantatges associats a aquest tipus de tecnologies en tres àmbits fonamentals: el medi ambient, la seguretat de subministrament energètic i el desenvolupament econòmic. No únicament contribueixen a la reducció d'emissions de gasos d'efecte hivernacle donat el seu caràcter renovable sinó que addicionalment milloren la seguretat de subministrament, prenent en consideració que es tracta de fonts energètiques autòctones. Així mateix, les energies renovables suposen un important motor de desenvolupament econòmic i social, fomentant la innovació i la generació de llocs de treball d'elevat valor afegit. No obstant això, aquesta ràpida penetració de les energies renovables planteja desafiaments al sistema elèctric en particular que ha d'adaptar-se a una creixent generació descentralitzada i de caràcter variable. Des de la perspectiva dels respectius sistemes elèctrics i la seva operació, el problema a solucionar és com integrar en el sistema un contingent considerable de generació d'origen renovable, la disponibilitat del qual és aleatòria, de localització lliure i que, davant situacions d'inestabilitat, es desconnecta del propi sistema elèctric, obligant a la resta de generació a incrementar la seva quota de participació en temps real amb la finalitat de garantir el permanent equilibri entre oferta i demanda que tot sistema elèctric exigeix per al seu correcte funcionament. La present Tesi aborda en profunditat del disseny actual del mercat elèctric i de l'impacte econòmic de les energies renovables en el preu final de l'electricitat que paguen els consumidors, prestant una especial atenció als mercats d'ajust, imprescindibles per al desenvolupament i implementació de les energies renovables.
A nivel mundial las energías renovables han crecido de forma considerable a lo largo de estas dos últimas décadas, habiendo sustituido parcialmente a los combustibles fósiles en ámbitos tales como la generación eléctrica. Una apuesta tan amplia por este tipo de energías sólo se explica desde el punto de vista de las importantes y crecientes ventajas asociadas a este tipo de tecnologías en tres ámbitos fundamentales: el medio ambiente, la seguridad de suministro energético y el desarrollo económico. No únicamente contribuyen a la reducción de emisiones de gases de efecto invernadero dado su carácter renovable sino que adicionalmente mejoran la seguridad de suministro, tomando en consideración que se trata de fuentes energéticas autóctonas. Asimismo, las energías renovables suponen un importante motor de desarrollo económico y social, fomentando la innovación y la generación de puestos de trabajo de elevado valor añadido. No obstante, esta rápida penetración de las energías renovables plantea desafíos al sistema eléctrico en particular que debe adaptarse a una creciente generación descentralizada y de carácter variable. Desde la perspectiva de los respectivos sistemas eléctricos y su operación, el problema a solucionar es cómo integrar en el sistema un contingente considerable de generación de origen renovable cuya disponibilidad es aleatoria, de localización libre y que, ante situaciones de inestabilidad, se desconecta del propio sistema eléctrico, obligando al resto de generación a incrementar su cuota de participación en tiempo real con el fin de garantizar el permanente equilibrio entre oferta y demanda que todo sistema eléctrico exige para su correcto funcionamiento. La presente Tesis aborda en profundidad del diseño actual del mercado eléctrico y del impacto económico de las energías renovables en el precio final de la electricidad que pagan los consumidores, prestando una especial atención a los mercados de ajuste, imprescindibles para el desarrollo e implementación de las energías renovables.
At a global scale, the use of renewable energy has grown considerably over the last two decades, having partially replaced fossil fuels in many areas such as electricity generation. Such a broad commitment to this kind of energy can only be explained by the significant and growing benefits associated with this type of technology in three key areas: environment, security of energy supply and economic development. These new energy sources not only contribute to reducing emissions of greenhouse gases - given its renewable nature - but also improve security of supply, as they use domestic energy sources. In addition, renewable energies are key to economic and social development, encouraging innovation and the creation of high added value jobs. Nevertheless, the rapid deployment of renewable energy already poses challenges for the electricity system in particular, which needs to adapt to increasingly decentralised and variable renewable generation. From the perspective of electrical systems and their operation, the problem to be solved is how to integrate generation from renewable sources into the system when availability is random, freely located and taken into account that when faced with unstable conditions disconnects itself from its own electrical system, forcing the rest of the generation to increase its share in real time to ensure the permanent balance between supply and demand called for by any electrical system for proper operation. This Thesis aims to take a close look at the current design of the electricity market and the economic impact of renewable energy on the final price of electricity paid by consumers, paying particular attention to adjustment markets, essential for the development and deployment of renewable energy.

La réforme du secteur de l'électricité du Nigeria a eu lieu en 2010-2013 mais a été jugée infructueuse par la plupart des parties prenantes. L'échec de la réforme est illustré par une myriade de défis économiques, institutionnels, techniques, financiers et sociopolitiques apparemment insurmontables. Cette thèse a pour objectif de proposer des solutions viables aux défis (ex post) auxquels fait face le secteur électrique du Nigéria, en empruntant aux approches de l'économie de l'énergie sur le market design et la régulation. Elle identifie les principales causes de l'échec de la dernière réforme du secteur : privatisation incomplète, intégration horizontale des opérations de transport et de réseau, infrastructure d'approvisionnement gazière sous-développée et cadre réglementaire faible et inefficace. Ainsi, elle recommande de renforcer le cadre réglementaire comme un bon point de départ pour résoudre les problèmes sectoriels (ex-post) de la réforme.Ensuite, cette thèse démontre que des enchères inversées bien conçues peuvent être un mécanisme de marché approprié à la situation du Nigéria, en précisant les variables importantes pour une implémentation réussie. Cette thèse affirme également que ces variables devraient être fondées sur un cadre institutionnel et réglementaire solide pour réussir. Elle recommande donc de concevoir des enchères inversées pour la technologie de stockage solaire photovoltaïque hors réseau /minigrid, en tant que solution potentielle pour accroître l'accès à l'électricité, attirer les investissements, et également discuté de la voie à suivre afin d’adapter la conception au cadre de marché discuter / réglementaire existant.Enfin, cette thèse comble certaines lacunes de l'état de l'art du secteur électrique nigérian en appliquant et combinant des systèmes d’informations géographiques (GIS), un outil d’optimisation de système énergétique et des connaissances du market design et de la régulation. Elle a identifié les clusters de consommateurs les plus peuplées sans accès à l'électricité, fait des projections de la demande de charge et déterminé les tailles de stockage PV et de batteries optimisées sur le plan techno-économique pour obtenir une alimentation de haute qualité d’électricité avec une certaine gestion de la demande. Également, elle a analysé les besoins en terrains / la disponibilité pour obtenir une liste restreinte de 233 clusters de 7,2 millions d'habitants, nécessitant un solaire photovoltaïque de 3 280 MW pour la vente aux enchères proposée. Enfin, cette thèse a examiné la voie à suivre pour adapter la conception proposée de la vente aux enchères de stockage d’énergie solaire photovoltaïque et de stockage au cadre de market design/réglementaire existant
The Nigeria Power sector reform was performed in the year 2010-2013 but has been adjudged unsuccessful by most stakeholders. The failure of the reform is evidenced by a myriad of seemingly insurmountable economic, institutional, technical, financial and socio-political challenges. This thesis aims to propose workable solutions to the challenges in the Nigeria Power sector (ex-post) reform from the field of market design and regulation in energy economics. It finds incomplete privatization coupled with the horizontal integration of the transmission and network operations, underdeveloped gas supply infrastructure and the ineffective/weak regulatory framework as the root causes of the reform failure. Thus, it recommends strengthening the regulatory framework as a good starting point to resolve sectoral problems (ex-post) reform.Furthermore, it argues that reverse auction has the potential to be successful in Nigeria with well-designed market variables and provides the market design variables adaptable to the Nigeria case to achieve a successful auction run. It also argues that these variables should be built on a foundation of a robust institutional and regulatory framework to be successful. It thus recommends designing reverse auctions for offgrid/minigrid solar PV plus storage technology as a potential solution to increase power access and attract investment and also discussed the pathway to adapt the design to the existing market/regulatory framework. In addition, it applied and combined Geographical Information System (GIS), energy system optimization tool and market/regulation knowledge to bridge some knowledge gap in the Nigeria Power sector. It identified the most populated consumer clusters without electricity access, made load demand projections and determined the techno-economically optimized PV plus battery storage sizes to achieve high quality power supply with some demand side management. Furthermore, it analyzed the land requirements/availability to achieve a shortlist of 233 clusters with 7.2 million people that require 3,280 MW solar PV for the proposed auction. Finally, it discussed the pathway to adapt the proposed solar PV plus storage auction design to the existing market/regulatory framework

京都大学
新制・課程博士
博士(エネルギー科学)
甲第23294号
エネ博第419号
京都大学大学院エネルギー科学研究科エネルギー社会・環境科学専攻
(主査)教授 手塚 哲央, 教授 宇根﨑 博信, 准教授 MCLELLAN Benjamin
学位規則第4条第1項該当
Doctor of Energy Science
Kyoto University
DFAM

Demand Response (DR) comprises some reactions taken by the end-use customers to decrease or shift the electricity consumption in response to a change in the price of electricity or a specified incentive payment over time. Wind energy is one of the renewable energies which has been increasingly used throughout the world. The intermittency and volatility of renewable energies, wind energy in particular, pose several challenges to Independent System Operators (ISOs), paving the way to an increasing interest on Demand Response Programs (DRPs) to cope with those challenges. Hence, this thesis addresses various electricity market designs enabling DR and Renewable Energy Systems (RESs) simultaneously. Various types of DRPs are developed in this thesis in a market environment, including Incentive-Based DR Programs (IBDRPs), Time-Based Rate DR Programs (TBRDRPs) and combinational DR programs on wind power integration. The uncertainties of wind power generation are considered through a two-stage Stochastic Programming (SP) model. DRPs are prioritized according to the ISO’s economic, technical, and environmental needs by means of the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. The impacts of DRPs on price elasticity and customer benefit function are addressed, including the sensitivities of both DR parameters and wind power scenarios. Finally, a two-stage stochastic model is applied to solve the problem in a mixed-integer linear programming (MILP) approach. The proposed model is applied to a modified IEEE test system to demonstrate the effect of DR in the reduction of operation cost.
A Resposta Dinâmica dos Consumidores (DR) compreende algumas reações tomadas por estes para reduzir ou adiar o consumo de eletricidade, em resposta a uma mudança no preço da eletricidade, ou a um pagamento/incentivo específico. A energia eólica é uma das energias renováveis que tem sido cada vez mais utilizada em todo o mundo. A intermitência e a volatilidade das energias renováveis, em particular da energia eólica, acarretam vários desafios para os Operadores de Sistema (ISOs), abrindo caminho para um interesse crescente nos Programas de Resposta Dinâmica dos Consumidores (DRPs) para lidar com esses desafios. Assim, esta tese aborda os mercados de eletricidade com DR e sistemas de energia renovável (RES) simultaneamente. Vários tipos de DRPs são desenvolvidos nesta tese em ambiente de mercado, incluindo Programas de DR baseados em incentivos (IBDRPs), taxas baseadas no tempo (TBRDRPs) e programas combinados (TBRDRPs) na integração de energia eólica. As incertezas associadas à geração eólica são consideradas através de um modelo de programação estocástica (SP) de dois estágios. Os DRPs são priorizados de acordo com as necessidades económicas, técnicas e ambientais do ISO por meio da técnica para ordem de preferência por similaridade com a solução ideal (TOPSIS). Os impactes dos DRPs na elasticidade do preço e na função de benefício ao cliente são abordados, incluindo as sensibilidades dos parâmetros de DR e dos cenários de potência eólica. Finalmente, um modelo estocástico de dois estágios é aplicado para resolver o problema numa abordagem de programação linear inteira mista (MILP). O modelo proposto é testado num sistema IEEE modificado para demonstrar o efeito da DR na redução do custo de operação.

Power system is at the brink of change. Engineering needs, economic forces and environmental factors are the main drivers of this change. The vision is to build a smart electrical grid and a smarter market mechanism around it to fulfill mandates on clean energy. Looking at engineering and economic issues in isolation is no longer an option today; it needs an integrated design approach. In this thesis, I shall revisit some of the classical questions on the engineering operation of power systems that deals with the nonconvexity of power flow equations. Then I shall explore some issues of the interaction of these power flow equations on the electricity markets to address the fundamental issue of market power in a deregulated market environment. Finally, motivated by the emergence of new storage technologies, I present an interesting result on the investment decision problem of placing storage over a power network. The goal of this study is to demonstrate that modern optimization and game theory can provide unique insights into this complex system. Some of the ideas carry over to applications beyond power systems.

We discuss a model of a virtual power plant (VPP) that provides market access to privately-owned distributed generations (DGs). The VPP serves passive loads, processes bids from generators, and trades in the wholesale market. The generators can be renewable or thermal, and they act strategically to maximize their own profit. The VPP establishes the rules of the internal market to minimize the cost of energy and the cost of balancing while ensuring generator participation and load balancing. We derive a heuristic mechanism for internal market and propose a dynamic programming approach for minimizing the VPP cost. We present illustrative simulations for both single and multistage market bidding and then compare the resulting performance to the centralized VPP model, where the DGs are assumed to be owned by the VPP. We show that the proposed design incentivizes the DG agents to behave the same as in the centralized case, but the optimal cost paid by VPP is higher due to the payments to the DG owners.

The decarbonization of the energy system is one of the most complex and consequential challenges of the 21st century. Meeting this challenge will require the deployment of existing low carbon technologies at unprecedented scales and rates and will necessitate the development of new technologies that have the ability to transform variable renewable energy into high energy density products. Reversible Solid Oxide Cells (RSOCs) are electrochemical devices that can function both as fuel cells or electrolyzers: in fuel cell mode, RSOCs consume a chemical fuel (H₂, CO, CH₄, etc.) to produce electrical power, while in electrolysis mode they consume electric power and chemical inputs (H₂O, CO₂) to produce a chemical fuel (H₂, CO, CH₄, etc.). As such, RSOC systems can be thought of as flexible “energy hubs” that have unique potential to bridge the low power density renewable infrastructure with that of high energy density fuels in an efficient, dynamic, and bidirectional fashion. This dissertation explores the different operational sensitivities and design trade-offs of a methane based RSOC system, investigates the optimum operating strategies for a system that adapts to variations in the hourly spot electricity and fuel prices in Western Denmark, and provides an economic analysis of the system under a wide variety of design assumptions, operational strategies, and fuel and electricity market structures. In order to perform such comprehensive analyses, a 0-D computational model of a methane based RSOC system was developed in Python. In fuel cell mode, the system generates power by consuming natural gas, while in electrolysis mode the system generates synthetic natural gas (SNG) by electrolyzing steam and catalytically hydrogenating recycled CO₂ into CH₄ downstream of the RSOC. The model's flexibility enables the simulation of “part-load” operation, allowing the user to assess the changes in output, efficiency, and operating cost as the system is operated across multiple points. The model has the ability to evaluate the impact that changes in design choices and operating parameters (Area Specific Resistance, temperatures, current density, etc.) have on the system as it interfaces with time varying exogenous factors such as fuel and electricity prices. As such, one of the main contributions of this model is the ability to run simulations in which the operating strategy of the RSOC system responds and adapts to varying market signals. The computational model is used to develop a series of hourly optimizations for finding the optimal operating strategy for an RSOC system that can buy or sell electricity and gas in the spot electricity and natural gas markets in Western Denmark. After receiving an electricity and gas price signal, the optimization determines the operating mode (fuel cell, electrolysis or idle) and operating point (e.g., current density) that maximize the operating profits every hour for the given electricity and gas price pair. In order to avoid the speculation associated with traditional energy storage simulations, the system is “opened” at both ends, allowing it to instantaneously buy and sell any electricity or gas that is generated. Thus, the system never stores any of the products and it buys and sells them at the instantaneously available market price. By assuming that market prices reflect all existing information, this design choice removes the necessity of having to speculate about the future in order to determine the optimum operating strategy. This approach is one of the innovations presented in this work. The optimizations aim at maximizing the operating profits at each hour of the year, and decisions of operating mode and point are based on marginal operating costs for each electricity and natural gas price pair. The full economic analysis, however, requires the understanding of how design choices (e.g. operating limits, heat management, gas recycling systems, etc.) affect the investment costs, and therefore a Total Plant Cost (TPC) model is developed. For each design choice, the TPC model is used to compute a cost of the system per m² of active electrode area or kW of output. This value, assumed to be a sunk cost that does not affect the operating decision, together with the operating profits resulting from the optimization is used to assess the overall profitability of the system. For a system with 100m² of active electrode area, conventional costing metrics suggest that the balance of plant (BoP) components for managing the system's heat (Heat exchangers, evaporators, condensers) are the main cost drivers and represent roughly 50% of the TPC. The cost of the electrochemical RSOC stack, assembly, power inverter and piping represent 35% of the cost, with the other 15% coming from pumps, compressors and the methanation system. Twenty different optimization scenarios are developed in order to quantify the effect that system design choices, operating limits, and market prices have on the operating profile and on the overall economics of the system. The first 12 case studies are based on real hourly spot electricity and natural gas prices for the years 2009-2014 in Western Denmark. For the last 8 scenarios, a forecasted hourly time-series for electricity in the Danish grid for the year 2050 and two fixed SNG prices (high and a low) are used. The 2050 prices, which assume a fossil fuel free system, are used to understand the role and value that RSOC systems can offer in deeply decarbonized energy systems. For each optimization, different parameters such as the initial ASR and the operating limits (maximum current densities for each mode of operation) are varied in order to find the impact that these changes have on the system's design (balance of plant components), hourly operating mode, investment costs, hourly operating profits, and overall plant profits. For the 2009-2014 optimizations, it is found that the sale of electricity (fuel cell mode) and fuel (electrolysis mode) is not large enough to cover the fixed costs associated with the plant. Fuel cell mode dominates the operation (61% of the time) with electrolysis representing only ~ 4% of the operating hours. ASR is found to have an important impact on the system's economics, due to the fact that a lowering of the ASR leads to a reduction in the size of the heat management system, which in turn reduces the Total Plant Cost. For the 2050 dataset, it is found that under the high gas price scenario electrolysis mode dominates (50% of the time), and fuel cell operation represents 15% of the hours in the year. For the low SNG price, electrolysis still dominates (48% of the time), and fuel cell operation increases to 30% of the operating hours. Furthermore, for the high SNG scenario, the sale of fuel and electricity are large enough to cover the system's fixed cost, making the system attractive from an investment perspective. For the low SNG price, the system also becomes profitable when using ASR values of 0.4 ASR or below.