A policy framework for sustainable electricity market development

Electricity market development (EMD) emerges to be a current concern following a shift of paradigm from EMD design with focuses upon energy as the key commodity to a need to deliver a sustainable low-carbon generation future. The feasible options of EMD are set to illustrate the interaction of the policy instruments, the market regulation and the sustainable investment environment. The economic benefits and costs have to be realized systematically and in a wide perspective including technical, operational and financial dimensions. The paper suggest that the energy policy of a sustainable electricity market development is set to ensure the energy needs of the community to be met; to maintain the safe, reliable, efficient energy at reasonable prices; to minimize the environmental impact of energy production and use; and to promote the efficient use and conservation of energy. It involves a wide range of complex and interrelated technical, economic and regulatory issues. A dynamic decision making model has been developed to cope with the requirements of the multimarket trading policy framework. Fuzzy Differential Evolution (FDE) algorithm is employed to solve the multi-period stochastic optimization problem and obtain the optimum results for each time interval. Policies defining the interactive markets can accurately reflect the intended goals such as decreasing emissions and promoting renewables.