Browsing by Subject "Electricity markets"

Now showing 1 - 4 of 4

Open Access
Analysing the effects of cross-border electricity trade on power production from different energy sources
(2020-04) Boz, Deniz Ege
This thesis provides empirical evidence to emphasize the crucial role of cross-border electricity trade for decreasing the use of fossil fuels in power industries and attaining higher electricity supply from solar and wind energy sources. We collected data for 48 countries across three continents (the Americas, Europe and Asia) from 1991 to 2018 to create a world sample that would reflect the diversity of various energy mixes in different electricity markets. We showed the existence of long-term relationships between power production from natural gas, solar, wind and the level of cross-border electricity trade through panel unit root and panel cointegration tests. Later on, we conducted panel data analyses that utilize the fixed-effect approach with interactive variables. The empirical evidence reveals that when electricity production from solar and wind energy sources interacts with cross border electricity trade, power production from natural gas decreases statistically significantly. Furthermore, we created efficiency indices for solar and wind energy sources and provide evidence for the increased utilization of solar and wind electricity production in the presence of cross-border electricity trade.
Open Access
The effects of cross-border electricity trade on power production from different energy sources
(Elsevier Inc., 2021-06) Boz, Deniz Ege; Şanlı, B.; Berument, M. Hakan
In this study, we provide empirical evidence to emphasize the crucial role of cross-border electricity trade for decreasing the use of fossil fuels in power industries and attaining higher electricity supply from solar and wind energy sources. We collected data for 48 countries across three continents (Americas, Europe and Asia) from 1991 to 2018 to create a world sample that would reflect the diversity of various energy mixes in different electricity markets. We showed the existence of long-term relationships between power production from natural gas, solar, wind and the level of cross-border electricity trade. Later on, we conducted panel data analyses that utilize the fixed-effect approach with interactive variables. The empirical evidence reveals that when electricity production from solar and wind energy sources interacts with cross-border electricity trade, the rate of power production from natural gas decreases statistically significantly. Furthermore, we created efficiency indices for solar and wind energy sources and to provide evidence for the increased utilization of solar and wind electricity production in the presence of cross-border electricity trade. The resulting empirical evidence reveals that for countries with positive economic growth, a rise in the levels of cross-border electricity trade leads to more efficient electricity production from solar and wind energy sources.
Open Access
Energy operations management for renewable power producers in electricity markets
(2023-05) Karakoyun, Ece Çiğdem
Renewable energy generation has grown dramatically around the world in recent years, and policies targeted at reducing greenhouse gas emissions that cause global warming are expected to ensure a consistent expansion of renewable power generation in the electricity sector. With the increasing contribution of renewable sources to the overall energy supply, renewable power producers participate in electricity markets where they are imposed to make advance commitment decisions for energy delivery and purchase. Making advance commitments, however, is a complex task due to the inherent intermittency of renewable sources, increasingly volatile electricity prices, and penalties incurred for possible energy imbalances in electricity markets. Integrating renewable sources with energy storage units is among the most effective methods to address this challenging task. Motivated by the recent trends of paired renewable energy generators and storage units, we study the energy commitment, generation and storage problem of a wind power producer who owns a battery and participates in a spot market operating with hourly commitments and settlements. In each time period, the producer decides how much energy to commit to selling to or purchasing from the market in the next time period, how much energy to generate in the wind power plant, and how much energy to charge into or discharge from the battery. The existence of the battery not only helps smooth out imbalances caused by the fluctuating wind output but also enables the producer to respond to price changes in the market. We formulate the wind power producer's problem as a Markov decision process by taking into account the uncertainties in wind speed and electricity price. In the first part of this dissertation, we consider two different problem settings: In the first setting, the producer may choose to deviate from her commitments based on the latest available information, using the battery to support such deviations. In the second setting, the producer is required to fulfill her commitments, using the battery as a back-up source. We numerically examine the effects of system components, imbalance pricing parameters, and negative prices on the producer's profits, curtailment decisions, and imbalance tendencies in each problem setting. We provide managerial insights to renewable power producers in their assessment of energy storage adoption decisions and to power system operators in their understanding of the producers' behavior in the market with their storage capabilities. In the second part of this dissertation, we establish several multi-dimensional structural properties of the optimal profit function such as supermodularity and joint concavity. This enables us to prove the optimality of a state-dependent threshold policy for the storage and commitment decisions under the assumptions of a perfectly efficient system and positive electricity prices. Leveraging this policy structure, we construct two heuristic solution methods for solving the more general problem in which the battery and transmission line can be imperfectly efficient and the price can also be negative. Numerical experiments with data-calibrated instances have revealed the high efficiency and scalability of our solution procedure. In the third part of this dissertation, we characterize the optimal policy structure by taking into account the battery and transmission line efficiency losses and showing the joint concavity of the optimal profit function. In the last part of this dissertation, we consider an alternative problem setting that allows for real-time trading without making any advance commitment. We analytically compare the total cash flows of this setting to those of our original problem setting. We conclude with a numerical investigation of the effect of advance commitment decisions on the producer's energy storage and generation decisions.
Open Access
Organization and functioning of liberalized electricity markets: An overview of the Dutch market
(Elsevier Ltd, 2015) Tanrisever, F.; Derinkuyu, K.; Jongen, G.
Abstract In this paper, we examine the organization and the functioning of the Dutch electricity market. First we describe the organization of the Dutch electricity supply chain and the role of the main market participants including the transmission system operator, distribution system operators, program responsible parties and metering companies. We then describe the organization of financial trading and clearing mechanism of electricity through the organized futures exchange (The European Energy Derivatives Exchange), and the spot market (Amsterdam Power Exchange) which includes the day-ahead market and intra-day markets. We also detail the functioning of the imbalance market and reserve capacity management in the Netherlands. Through a set of numerical analysis, we provide an exploratory analysis of the APX day-ahead spot prices and the real-time imbalance prices using electricity price data from 2002 to 2013. We observe the price spikes both in the day-ahead and imbalance markets usually occur around 6-10 AM and 5-7 PM. We also observe that in the imbalance market system overages happen significantly more often than shortages pointing out that the market tends to buy more than what is demanded. This could be explained by the risk attitude of the market participants in the imbalance market.