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Electric Power Production
Published in J. Lawrence, P.E. Vogt, Electricity Pricing, 2017
A power pool is an operating arrangement between affiliated (holding company operating units) and/or nonaffiliated utility companies under which the participating utilities’ generation resources are pooled together and commonly dispatched as a single, larger system. In so doing, a superior operating performance is often achieved as compared to the best optimizations of the pool member generation systems operating independently. With pooling agreements, the member utilities retain ownership and the associated responsibility for their specific generating units and facilities.
Electricity market overview
Published in Jin Zhong, Power System Economic and Market Operations, 2018
The restructuring of power sector in Great Britain started with power system privatization in 1980s. Generation assets and generation companies were separated from the transmission company, the National Grid Company (NGC), which is also the TSO of the market. Distribution assets were privatized into regional electricity companies that own distribution networks. Regional electricity companies are responsible for supplying electric energy to customers and selling electricity as electricity retailers. The first electricity market commenced in 1990 in England and Wales with the introduction of Power Pool for electricity wholesale market. Generators offer electricity generation quantities and prices to Power Pool. Large customers and electricity retailers bid for electricity from Power Pool. Generation offers are ranked in the ascending order as a supply curve. Customer bids are ranked in the descending order as a demand curve. Generators with lower offers have higher priority to sell electricity, while customers with higher bids have higher priority to buy electricity. The Power Pool matches generators and customers according to the priority lists of offers and bids. The cross point of generation supply curve and demand curve determines the market clearing price. Generators offered lower prices and customers bid for higher prices are selected in the market. The concept of price priority list and the mechanism of market clearing price developed with the Power Pool have been widely adopted in the later electricity market designs and applied for market clearing for different systems. We can say that the Power Pool model is a pioneer market model that provides a theoretical basis for later mechanism designs of electricity markets in the world. Power Pool-based market has been operational for over 10 years. In 2001, it was reviewed and replaced by a new market arrangement. The new market structure is known as New Electricity Trading Arrangement (NETA).
Hydropower as a catalyst for regional cooperation in South Asia
Published in International Journal of Water Resources Development, 2021
Cecilia Tortajada, David J. Molden
The fifth paper by Vaidya et al. (2019), on ‘Electricity trade and cooperation in the BBIN region: lessons from global experience’, reviews four cases of regional power trade and cooperation and experiences that could be valuable for the BBIN region. These are the Greater Mekong Subregion (GMS) energy programme; the Central American Electricity Interconnection System (SIEPAC); the South African Power Pool (SAPP); and the Nordic power pool (Denmark, Finland, Norway and Sweden). They identify key elements in terms of policies, institutions (national and supranational) and infrastructure in each case study and discuss what the BBIN countries could learn from them. Based on the study, immediate actions are suggested for countries in the region. Key messages of the paper regarding the BBIN countries include the implementation of the open access policy on transmission grid networks for transit to a third country; the expedition of power sector reforms in all the countries; the provision of access of existing power exchanges to all countries; a permanent regional coordination centre to manage decision-making processes; and the engagement of external support to finance technical studies, capacity-building and infrastructure.
Cross-border electricity trade for Nepal: a SWOT-AHP analysis of barriers and opportunities based on stakeholders’ perception
Published in International Journal of Water Resources Development, 2021
Shobhakar Dhakal, Pratik Karki, Subina Shrestha
To conclude, like South Africa, which took the central role in establishing the South African Power Pool (SAPP), with its large electricity market, booming economy and central location, it is imperative that India take the lead role in the region. Without India’s will, regional electricity cooperation in BBIN is not possible. Meanwhile, in parallel, Nepal must also formulate its own specific policies and strategies, and focus on removing its internal barriers rather than depending on the generosity of India. Policies and strategies related to hydropower development should have a minimum national consensus, no matter which political party is in power. Such all-party understanding will ensure a stable environment for the growth of hydropower in Nepal, and more importantly will attract foreign direct investment. Lastly, Nepal’s engagement with China on electricity trade and trans-Himalayan transmission networks is beginning to be discussed only in the last few years; Nepal needs to carefully consider such market development and cooperation avenues. Discussions are ongoing of a 400 kV line from Galchhi in Nepal to Rasuwagadhi (on the Nepal–China border) and then to Shigatse in China (about 800 km in total, of which about 80 km is inside Nepal). As of now, Nepal–China cooperation has more weight from the perspective of investment in hydropower than power exports.
Electricity trade and cooperation in the BBIN region: lessons from global experience
Published in International Journal of Water Resources Development, 2021
Ramesh Ananda Vaidya, Niru Yadav, Nirjan Rai, Saumitra Neupane, Aditi Mukherji
The Nordic power pool covers four Scandinavian countries – Denmark, Finland, Norway, and Sweden – and is one of the world’s most advanced electricity markets. As a fully market-driven arrangement, the pool is considered to be a benchmark for regional power cooperation. The institutions, market operations and regulations are designed to promote energy security, efficiency and sustainability through a competitive market system. As in BBIN, the region has a diverse and complimentary energy mix. Of the total electricity traded in the pool, roughly half is from hydropower in Norway. Denmark relies predominantly on imported coal, Sweden has an equal mix of thermal and nuclear power, and Finland has a mix of hydro, nuclear and thermal (Carlsson, 1999). The Nordic pool, developed over a period of 45 years with two phases of regional cooperation: Nordel and Nord Pool. The transition from the first phase of cooperation to the second phase was initiated by Norway through deregulation of its domestic power market in 1991 and establishment of a spot market in 1992. Other states followed by introducing their own power sector reforms and joining the power pool based on Norway’s design. The Nordic transmission grid connects all Nordic states by combining the national grids into one synchronous power system. However, the grid system is decentralized as each state’s transmission companies operate and invest in their national networks individually. The transmission interconnectors also connect various countries in continental Europe to the Nordic market and some of the latest improvements have been the result of European Union (EU) regulations. The transition to an international electricity market was aided by the long history of bilateral energy trade and cooperation among the countries, along with the presence of interconnection transmission infrastructure.