Inversion of real time spot prices in the direction of real power flow in a transmission line

An increasing number of electricity markets employing some form of spot pricing. However, limited experience of the behavior of spot prices exists. This paper introduces and investigates one particular aspect of pricing behavior observed in the New Zealand spot market, known as "price inversion...

Full description

Saved in:
Bibliographic Details
Published in:IEEE transactions on power systems 2000-11, Vol.15 (4), p.1197-1203
Main Authors: Ward, A.G., Watson, N.R., Arnold, C.P., Turner, A.J., Ring, B.J.
Format: Article
Language:English
Subjects:
Computer programs
Costs
Economics
Electric power generation
Electricity supply industry
Inversions
Load flow
Markets
Mathematical analysis
Power generation economics
Power system economics
Power system modeling
Power systems
Power transmission lines
Pricing
Software
Transmission line theory
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:An increasing number of electricity markets employing some form of spot pricing. However, limited experience of the behavior of spot prices exists. This paper introduces and investigates one particular aspect of pricing behavior observed in the New Zealand spot market, known as "price inversion". Spot prices are generally calculated using some form of OPF or power-flow software. The phenomena of price inversion is investigated using the DC power-flow implemented in the New Zealand spot market, and using a full AC power-flow. Price inversion is shown to be dependent on the physical characteristics of the power system. The economic implications of price inversion are also discussed.
ISSN:0885-8950
1558-0679
DOI:10.1109/59.898090