Title :
Impact of bilateral contracts on the price volatility in the electricity market
Author :
Wang, Guanli ; Hung, Hui-Chih
Author_Institution :
Dept. of Ind. & Syst. Eng., Nat. Univ. of Singapore, Singapore, Singapore
Abstract :
One of the evident consequences of the deregulation in electricity industry is the volatility of market clearing prices (MCP). In this paper, we use variance to measure this price volatility and propose supply function equilibria and Cournot models to characterize the impact of bilateral contracts on the variance of MCP. As the result, we show that bilateral contracts reduce the variance of MCP. Finally, a numerical study based on Singapore electricity market to support our models is presented.
Keywords :
power markets; Cournot models; Singapore electricity market; bilateral contracts; electricity industry; market clearing prices; price volatility; Electricity; Electricity supply industry; Equations; Forward contracts; Mathematical model; Numerical models; Bilateral contracts; electricity; market clearing prices; variance;
Conference_Titel :
Industrial Engineering and Engineering Management (IEEM), 2010 IEEE International Conference on
Conference_Location :
Macao
Print_ISBN :
978-1-4244-8501-7
Electronic_ISBN :
2157-3611
DOI :
10.1109/IEEM.2010.5674290
