Impacts of Loop Flow on Electricity Market Design

Author

Choo, C.Y. ; Nair, Nirmal-Kumar C. ; Chakrabarti, Bhujanga

fYear

2006

Firstpage

1

Lastpage

8

Abstract

The process towards conforming with standardized market design (SMD) in electricity markets like New Zealand, PJM, ISO-NE and ERCOT, includes features of locational marginal pricing and financial transmission rights. This paper presents occurrence of price volatilities in LMP-based market typically during transmission congestions in a loop network which is termed as spring washer effect in New Zealand Electricity Market (NZEM). The loop flow or parallel path flow that causes this impact is analyzed using DC load flow model. Financial transmission rights (FTR), a financial hedging instrument, is recommended for electricity markets by SMD. The paper also demonstrates the potential impacts of loop flow control devices on FTR.

Keywords

load flow; power markets; power transmission economics; pricing; DC load flow model; ERCOT; ISO-NE; LMP-based market; New Zealand electricity market; PJM; financial hedging instrument; financial transmission rights; locational marginal pricing; loop flow; loop flow control devices; parallel path flow; price volatilities; standardized market design; transmission congestions; Conference management; Electricity supply industry; Flexible AC transmission systems; Load flow; Load modeling; Power capacitors; Power system management; Pricing; Springs; Thyristors; Deregulation; electricity markets; financial transmission rights (FTR); linear programming; locational marginal pricing (LMP); loop flow; parallel path flow; standardized market design (SMD); thyristor controlled series capacitors (TCSC);

fLanguage

English

Publisher

ieee

Conference_Titel

Power System Technology, 2006. PowerCon 2006. International Conference on

Conference_Location

Chongqing

Print_ISBN

1-4244-0110-0

Electronic_ISBN

1-4244-0111-9

Type

conf

DOI

10.1109/ICPST.2006.321875

Filename

4115996