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Electricity market overview
Published in Jin Zhong, Power System Economic and Market Operations, 2018
Generation companies are the sellers in the electricity wholesale market. Electricity retailers, load serving entities, load aggregators, marketers, and so on are the buyers in the electricity wholesale market. Although they have different names, they all perform as buyers in the electricity market and purchase energy directly from generation companies or from electricity spot markets. Some electricity retailers or load serving entities also own and run distribution networks. They provide energy distribution services to customers in their networks, as well as perform as retailers in the electricity retail markets. Electricity retailers are energy suppliers and sellers in the electricity retail market. End users, including large customers and residential customers, are buyers in the electricity retail market.
Accelerating Reforms in Power Markets in India: Key Trends, Challenges, Recommendations and Opportunities
Published in Ajay Mathur, Adair Turner, Noëmie Leprince-Ringuet, Green, Reliable and Viable, 2019
Hemant Sahai, Rachika A. Sahay
The electricity market establishes a price for its commodity through the basic economics principle of demand and supply. However, an electricity market produces the commodity for immediate consumption even though the requisites for creation and classification of the markets such as quality, quantity, price etc. remain the same as those of other traditional markets. In the Indian scenario, the power exchange has matured rapidly in spite of initial low volumes and high prices. Though bulk of the electricity continues to be contracted through bilateral long-term power purchase agreements (PPAs), the ‘electricity market’ refers to trading at the power exchange.
Electricity and Transportation Markets
Published in Anco S. Blazev, Global Energy Market Trends, 2021
Electricity is a physical product–the actual flow of electrons at a given time is the actual product for sale here. The electricity market is a system created around the generation and use of electricity, which enables purchases, through bids to buy; sales, through offers to sell; and short-term trades, generally in the form of financial or obligation swaps. Bids and offers use supply and demand principles to set the price. Long-term trades are contracts similar to power purchase agreements and generally considered private bi-lateral transactions between counterparties.
Variable and Assured Peak Electricity Production from Base-Load Light-Water Reactors with Heat Storage and Auxiliary Combustible Fuels
Published in Nuclear Technology, 2019
The electricity market is changing because of advances in technology and policy goals to reduce greenhouse gas emissions. In much of the world the emphasis is on wind and solar; however, the large-scale addition of wind or solar collapses the price of electricity at times of high wind or solar output. The revenue collapse limits the economic use of wind and solar. In the United States this favors the use of natural gas because of (1) the low cost of natural gas and (2) the ability to rapidly ramp up and down the output of gas turbines so the gas turbines avoid selling electricity at times of low prices. The economics result in a system where most electricity is produced by natural gas with wind and solar used to reduce natural gas consumption as discussed in Sec. II. This environment does not favor high-capital, low-operating-cost nuclear plants because wind and solar drive down prices when available while natural gas limits electricity prices at other times. Such a solution does not meet the long-term goals of a low-carbon electricity grid.
Mitigation of transmission line jamming by price intrusion technique in competitive electricity market
Published in International Journal of Ambient Energy, 2023
Swakantik Mishra, Sudhansu Kumar Samal
The power market or popularly known electricity market is highly competitive, as it has many players from different channels like generation firms, transmission and distribution entities, and retailers. All these firms and entities are major stakeholders of the market, there are also several independent players like system operators, brokers, power/energy exchange, etc. when any disturbance or imbalance occurs in the system due to known-unknown reasons the entire market gets affected (Doshi and Dub 2021; Namilakonda and Guduri 2021). In general, transmission refers to interstate highways of electric energy delivery which is capable of shifting the immense electricity to the substations located near the area where there is a demand for electric power from various generation sites located far away from the substations. In past years in the electric market, very big corporation companies enjoyed domination or monopoly and takes complete responsibility for generating the electric power (Smail, Alkama, and Medjdoub 2018; Patel, Suthar, and Thakkar 2021; Bagheri et al. 2020). However, in recent years, by using captive power plants as well as the availability of nonrenewable energy sources, a common individual can generate electric power thereby transmitting the electric power to the electric grid. This has contributed the system restructuring (i.e. deregulation, liberalisation as well as privatisation) (Wu, Zhang, and Jiang 2018; Nguinbe et al. 2021; Tiwari, Mishra, and Dawn 2019; Masood et al. 2021). On the other hand, the restructuring system faces numerous other challenges namely congestion trouble during transmission, market efficiency, mitigating the market time as well as selecting an appropriate auction strategy (Asrari et al. 2019).
Modelling and analysis of resource scheduling in restructured power systems considering wind energy uncertainty
Published in International Journal of Sustainable Energy, 2018
K. Srikanth Reddy, Lokesh Panwar, B. K. Panigrahi, Rajesh Kumar
An overview of deregulated market structure and operation mechanism is discussed in this section. The deregulation of electricity market provoked competitiveness in different market players viz. generation companies (GENCOs), consumers/utilities, suppliers, etc. (Das and Wollenberg 2005). In general, market structure consists of two phases of operation, DAM and spot RT market. The responsibility of supply–demand balance in deregulated market structure is accomplished by ISO who does this by deciding schedules of GENCOs in DAM and RT markets based on price indices/bids (Rau and Zeng 2004).