Determination of Price Zones during Transition from Uniform to Zonal Electricity Market: A Case Study for Turkey

Poyrazoglu, Gokturk

doi:10.3390/en14041014

Cited by 15 publications

(3 citation statements)

References 43 publications

(57 reference statements)

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“…To improve and develop models based on ecological and social challenges, some suggestions have been presented by Borowski [2] to improve zonal and nodal models that may hold promise as new models for the functioning of the electricity market in Europe in the near future. Poyrazoglu [3] applied three clustering methods to pricing zone detection for an electricity market in a Turkey case study. However, a more accurate estimation of equipment costs is essential to power plants exergo-economic analysis, as those costs have direct and influential impacts on final economic results.…”

Section: Introductionmentioning

confidence: 99%

Development of Cost Correlations for the Economic Assessment of Power Plant Equipment

et al. 2021

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A comprehensive cost correlation analysis was conducted based on available cost correlations, and new equipment cost correlation models were proposed based on QUE$TOR modeling. Cost correlations for various types of equipment such as pumps, compressors, heat exchangers, air coolers, and pressure vessels were generated on the basis of extracted cost data. The models were derived on the basis of robust multivariable regression with the aim of minimizing the residuals by using the genetic algorithm. The proposed compressor models for both centrifugal and reciprocating types showed that the Turton cost estimation for carbon steel compressor and Matche’s and Mhhe’s data were compatible with the generated model. According to the results, the cost trend in the Turton correlation for carbon steel had a somewhat lower estimation than these correlations. Further, the cost trend of the Turton correlation for carbon steel pressure vessels was close to the presented model trend for both bullet and sphere types. The Turton cost trend for U-tube shell-and-tube heat exchangers with carbon steel shell and stainless steel tube was close to the proposed heat exchanger model. Furthermore, the Turton cost trend for the flat-plate heat exchanger using carbon steel was similar to the proposed model with a slight difference.

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Section: Introductionmentioning

confidence: 99%

Development of Cost Correlations for the Economic Assessment of Power Plant Equipment

et al. 2021

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“…The optimal design of the distribution network must be dealt with care considering the extensive network layouts, system losses, and frequent characteristic interruptions [1]. Energy markets around the world are based on two pricing models; zonal and nodal, to deal with congestion due to limited transmission capacity [2,3]. However, the nodal model takes into account the actual state of the power system in a transparent manner to allocate the future distributed generation [4].…”

Section: Introductionmentioning

confidence: 99%

Comparison of Economical and Technical Photovoltaic Hosting Capacity Limits in Distribution Networks

et al. 2021

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Power distribution networks are transitioning from passive towards active networks considering the incorporation of distributed generation. Traditional energy networks require possible system upgrades due to the exponential growth of non-conventional energy resources. Thus, the cost concerns of the electric utilities regarding financial models of renewable energy sources (RES) call for the cost and benefit analysis of the networks prone to unprecedented RES integration. This paper provides an evaluation of photovoltaic (PV) hosting capacity (HC) subject to economical constraint by a probabilistic analysis based on Monte Carlo (MC) simulations to consider the stochastic nature of loads. The losses carry significance in terms of cost parameters, and this article focuses on HC investigation in terms of losses and their associated cost. The network losses followed a U-shaped trajectory with increasing PV penetration in the distribution network. In the investigated case networks, increased PV penetration reduced network costs up to around 40%, defined as a ratio to the feeding secondary transformer rating. Above 40%, the losses started to increase again and at 76–87% level, the network costs were the same as in the base cases of no PVs. This point was defined as the economical PV HC of the network. In the case of networks, this level of PV penetration did not yet lead to violations of network technical limits.

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“…This study analyzes the day-ahead market, adopts a single-node pricing system that does not consider transmission congestion and energy losses. However, since the actual electricity market operates with physical line capacity limitations, more rational and ecological prices can be derived with the zonal or nodal pricing methods that reflect transmission congestion and losses, such as locational marginal pricing scheme [34,35].…”

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confidence: 99%

A Comparative Study of Pricing Mechanisms to Reduce Side-Payments in the Electricity Market: A Case Study for South Korea

et al. 2021

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Under marginal-cost pricing, some generators cannot recover their production costs at the market price due to non-convexities in the electricity market. For this reason, most electricity markets pay side-payments to generators whose costs are not sufficiently recovered, but side-payments present the problem of deteriorating transparency in the market. Recently, convex hull pricing and extended locational marginal pricing have been reviewed or gradually introduced to reduce side-payments. Another method is to include non-convex costs in the market price, which is applied in the Korean electricity market. Although it is not generally considered in the electricity market, the Vickrey auction method is also one of the pricing mechanisms that can reduce side-payments. The main purpose of this study is to analyze the financial impact of these alternative pricing mechanisms on market participants through rigorous simulation. We applied the alternative pricing schemes to the Korean electricity market, and the impacts are analyzed by comparing the cost aspect of an electricity sales company and the profit aspect of generation companies. As a result of the simulation study, each pricing mechanism not only differed in the degree to which side-payments are reduced but also has different effects on the type of generators.

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Determination of Price Zones during Transition from Uniform to Zonal Electricity Market: A Case Study for Turkey

Cited by 15 publications

References 43 publications

Development of Cost Correlations for the Economic Assessment of Power Plant Equipment

Development of Cost Correlations for the Economic Assessment of Power Plant Equipment

Comparison of Economical and Technical Photovoltaic Hosting Capacity Limits in Distribution Networks

A Comparative Study of Pricing Mechanisms to Reduce Side-Payments in the Electricity Market: A Case Study for South Korea

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