• DocumentCode
    2303011
  • Title

    Incentive for the profit maximization of binding generation in a market environment

  • Author

    Marques, Victor ; Vaz, C. ; Verdelho, P.

  • Author_Institution
    Entidade Reguladora dos Servicos Energeticos, Lisbon
  • fYear
    2008
  • fDate
    28-30 May 2008
  • Firstpage
    1
  • Lastpage
    5
  • Abstract
    The opening of the market in the generation side obliges to renegotiate power purchase agreements (PPA), traditionally applied in some electricity sectors. The renegotiation of those PPA should be exercised with the producerspsila agreement. In the case that this doesnpsilat happen, a proper framework should be established in order to enable the existence of this agreement without any market interference. In this new framework, the energy produced by those power stations shall be sold in the wholesale market. The difference between the costs of the energy produced and the gains of selling this energy in the market is transferred to the customers through the access tariffs. Thus, the net consumers profit can be increased by an efficient management of those PPA. In this paper an incentive to maximize those profits is proposed. The mechanism is based on the fact that the Iberian spot market prices present a constant pattern, which allows the dispatch of power plants in a deterministic way, i.e., defined ex-ante at a minimum risk.
  • Keywords
    power generation dispatch; power generation economics; power markets; power plants; Iberian spot market prices; market interference; power plants dispatch; power purchase agreements; power stations; profit maximization; Costs; Electronic mail; Energy consumption; Fuels; Interference; Investments; Natural gas; Power generation; Production; Turbines; Regulatory incentives; binding generation; combined cycle gas turbine; market price; profit maximization; share of benefits;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Electricity Market, 2008. EEM 2008. 5th International Conference on European
  • Conference_Location
    Lisboa
  • Print_ISBN
    978-1-4244-1743-8
  • Electronic_ISBN
    978-1-4244-1744-5
  • Type

    conf

  • DOI
    10.1109/EEM.2008.4579047
  • Filename
    4579047