Advanced Search
MyIDEAS: Login to save this paper or follow this series

ISO Net Surplus Collection and Allocation in Wholesale Power Markets Under Locational Marginal Pricing

Contents:

Author Info

  • Li, Hongyan
  • Tesfatsion, Leigh

Abstract

This study uses 5-bus and 30-bus test cases to explore ISO net surplus (congestion rent) collections and allocations in wholesale power markets with grid congestion managed by locational marginal prices (LMPs). Price-sensitivity of demand and generator learning capabilities are taken as experimental�treatment factors. A key finding is that treatments resulting in greater generator capacity withholding, hence higher and more volatile LMPs, also result in greater ISO�net surplus collections that can be substantial in size.�� A key�conclusion is that ISO net surplus collections should be used pro-actively to mitigate the conditions encouraging generator capacity withholding and hence high and volatile LMPs rather than to provide ex post support for LMP payment offsets and LMP volatility risk hedging as is currently the norm. Related work can be found at: http://www.econ.iastate.edu/tesfatsi/AMESMarketHome.htm

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ.iastate.edu/sites/default/files/publications/papers/p1457-2009-07-09.pdf
Download Restriction: no

File URL: http://www.econ.iastate.edu/tesfatsi/ISONetSurplus.WP09015.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 13092.

as in new window
Length:
Date of creation: 09 Jul 2009
Date of revision:
Publication status: Published in IEEE Transactions on Power Systems, May 2011, vol. 26 no. 2, pp. 627-641
Handle: RePEc:isu:genres:13092

Contact details of provider:
Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Email:
Web page: http://www.econ.iastate.edu
More information through EDIRC

Related research

Keywords: Restructured wholesale power markets; ISO net surplus (congestion rents); multi-agent learning; demand-bid price sensitivity; AMES Wholesale Power Market Test Bed;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Borrill, Paul L. & Tesfatsion, Leigh, 2010. "Agent-Based Modeling: The Right Mathematics for the Social Sciences?," Staff General Research Papers 31674, Iowa State University, Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:isu:genres:13092. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephanie Bridges) The email address of this maintainer does not seem to be valid anymore. Please ask Stephanie Bridges to update the entry or send us the correct address.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.