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Power plant operation and management in a deregulated market

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  • Carraretto, Cristian

Abstract

This paper analyzes the influence of electricity deregulation on the design, operation and management of the power plants owned by strategic and non-strategic producers. After a sensitivity analysis aimed at finding market conditions of profitable operation for thermal and hydroelectric power plants, a Nash-equilibrium market model is used to determine producers' optimum strategies, depending on their relative market power and overall production characteristics. Attention is then focused on the operation of single thermal power plants. Their short-term management plans and consequent effects on emission levels and residual life are described. The available reserve for primary and secondary control deriving from producers' market strategies is discussed. Some design options to improve combined cycles contribution to reserve service are finally described. The paper discusses these problems with a general approach, and uses many cases and examples derived from the current Italian scenario.

Suggested Citation

  • Carraretto, Cristian, 2006. "Power plant operation and management in a deregulated market," Energy, Elsevier, vol. 31(6), pages 1000-1016.
    • Handle: RePEc:eee:energy:v:31:y:2006:i:6:p:1000-1016
    DOI: 10.1016/j.energy.2005.02.009
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    1. Chatzimouratidis, Athanasios I. & Pilavachi, Petros A., 2009. "Sensitivity analysis of technological, economic and sustainability evaluation of power plants using the analytic hierarchy process," Energy Policy, Elsevier, vol. 37(3), pages 788-798, March.
    2. Liu, Zhen & Zhang, Xiliang & Lieu, Jenny, 2010. "Design of the incentive mechanism in electricity auction market based on the signaling game theory," Energy, Elsevier, vol. 35(4), pages 1813-1819.
    3. Wolfgang, Ove & Haugstad, Arne & Mo, Birger & Gjelsvik, Anders & Wangensteen, Ivar & Doorman, Gerard, 2009. "Hydro reservoir handling in Norway before and after deregulation," Energy, Elsevier, vol. 34(10), pages 1642-1651.
    4. Zare, Kazem & Moghaddam, Mohsen Parsa & Sheikh El Eslami, Mohammad Kazem, 2010. "Demand bidding construction for a large consumer through a hybrid IGDT-probability methodology," Energy, Elsevier, vol. 35(7), pages 2999-3007.
    5. Chiyori T. Urabe & Tetsuo Saitou & Kazuto Kataoka & Takashi Ikegami & Kazuhiko Ogimoto, 2021. "Positive Correlations between Short-Term and Average Long-Term Fluctuations in Wind Power Output," Energies, MDPI, vol. 14(7), pages 1-15, March.
    6. Mirandola, A. & Stoppato, A. & Lo Casto, E., 2010. "Evaluation of the effects of the operation strategy of a steam power plant on the residual life of its devices," Energy, Elsevier, vol. 35(2), pages 1024-1032.

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