Inversion of real time spot prices in the direction of real power flow in a transmission line

Author

Ward, A.G. ; Watson, N.R. ; Arnold, C.P. ; Turner, A.J. ; Ring, B.J.

Author_Institution

Canterbury Univ., Christchurch, New Zealand

Volume

15

Issue

4

fYear

2000

fDate

11/1/2000 12:00:00 AM

Firstpage

1197

Lastpage

1203

Abstract

An increasing number of electricity markets employing some form of spot pricing. However, limited experience of the behavior of spot prices exists. This paper introduces and investigates one particular aspect of pricing behavior observed in the New Zealand spot market, known as “price inversion”. Spot prices are generally calculated using some form of OPF or power-flow software. The phenomena of price inversion is investigated using the DC power-flow implemented in the New Zealand spot market, and using a full AC power-flow. Price inversion is shown to be dependent on the physical characteristics of the power system. The economic implications of price inversion are also discussed

Keywords

costing; electricity supply industry; load flow; power transmission economics; power transmission lines; tariffs; AC power-flow; DC power-flow; New Zealand; economic implications; electricity markets; real power flow; real-time spot prices inversion; spot pricing; transmission line; Costs; Electricity supply industry; Load flow; Power generation economics; Power system economics; Power system modeling; Power systems; Power transmission lines; Pricing; Transmission line theory;

fLanguage

English

Journal_Title

Power Systems, IEEE Transactions on

Publisher

ieee

ISSN

0885-8950

Type

jour

DOI

10.1109/59.898090

Filename

898090