Determination of Price Zones during Transition from Uniform to Zonal Electricity Market: A Case Study for Turkey

In the electricity market, different pricing models can be applied to increase market competitiveness. Different electricity systems use different market structures. Uniform marginal pricing, zonal marginal pricing, and nodal marginal pricing methods are commonly used market structures. For markets...

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Bibliographic Details
Published in:Energies (Basel) 2021-02, Vol.14 (4), p.1014
Main Author: Poyrazoglu, Gokturk
Format: Article
Language:English
Subjects:
Case studies
Clustering
clustering quality
Competitiveness
Electricity
electricity market
Equality
Generators
k-means clustering
Lagrange multiplier
Linear programming
Marginal pricing
Methods
Shadow prices
spatially constrained clustering
Supply & demand
zonal pricing
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Summary:In the electricity market, different pricing models can be applied to increase market competitiveness. Different electricity systems use different market structures. Uniform marginal pricing, zonal marginal pricing, and nodal marginal pricing methods are commonly used market structures. For markets wishing to move from a uniform pricing structure to a more competitive zonal pricing structure, the determination of price zones is critical for achieving a competitive market that generates accurate price signals. Three different pricing zone detection algorithms are analyzed in this paper including the k-means clustering and queen/rook spatially constraint clustering. Finally, the results of a case study for the Turkish electricity system are shared to compare each method.
ISSN:1996-1073
1996-1073
DOI:10.3390/en14041014