Flaws in Generation Scheduling in Iran Electricity Market from the Viewpoint of Competition Principal

Abstract

Most of countries have started restructuring process as the salvation route of electricity industry. In the new environment, competition is a fundamental key and it is well known that in any competition, fairness is the major concern of the players. Generally, competition in power system has been started from generation sector, and winners of this competition are chosen via Unit commitment procedure which is supposed to be fair. In Iran central market, Unit Commitment procedure is an optimization problem constrained by some technical limitations including unit operational limitations, grid limitation and reliability requirements. This paper discusses how in Iran Electricity Market the unit constraints affect Unit Commitment result and argues whether these constraints are dealt in a fair manner or not.

Investigation of power‐based day‐ahead electricity market in terms of inducing fake ramp demand, assuring real‐time compatibility, support for flexibility, and providing some solutions

“…Reversely, the inflexible unit has the higher business opportunities in EbM. As seen in Table 5, in both EbM and PbM, the revenue of inflexible unit is higher, and this is a real flexibility issue that is probable in electricity markets as reported in References 35,36. According to what is observed here, pure PbM structure is not sufficient to overcome the flexibility challenge and needs further supports, such as incorporating energy storage systems 37 and/or ramp market, 38,39 flexible demand response programs, 40 differentiating flexibility feature within the capacity market, 41 or incorporating decomposed dual variables in the billing procedures 36 .…”