Generation capacity adequacy in interdependent electricity markets

The Finnish power market: Are imports from Russia low-cost?

“…System dynamics 2 has been widely used to understand the longterm dynamics of liberalised electricity markets and the deregulation process, in particular to explain the cycles of capacity expansion causing periods of over-and under-supply (Bunn and Larsen, 1997;Ford, 1999;Olsina, 2005). System dynamics has also been used to analyse the impact of different forms of resource adequacy policies, such as capacity mechanisms, on capacity expansion in liberalised electricity markets (Hasani and Hosseini, 2011;Park et al, 2007), as well as the impact of environmentalrelated policies on the dynamics of capacity expansion (QudratUllah and Davidsen, 2001;Vogstad, 2005).…”

“…It is strongly believed that market integration can bring benefits by improving efficiency in the use of resources, reducing supply costs and carbon emissions, and strengthening the security of supply (Creti et al, 2010;Jamasb and Pollitt, 2005). However, the achievement of these benefits may be hindered by inefficient cross-border trade and uncoordinated national capacity expansion and security of supply policies (Cepeda and Finon, 2011;Ochoa et al, 2013).…”

Assessing long-term effects of demand response policies in wholesale electricity markets

“…The system dynamics model used to simulate the long-term evolution of an electricity market closely follows the formulation in Cepeda and Finon [6]. In this subsection, we provide details of the representation of DR and its integration into the investment decision process.…”

“…The model is based on Cepeda and Finon [6] and is expanded to incorporate DR development, while preserving the essential elements of the model: thermal generation modeling and its longand short-term uncertainties (i.e. demand growth rate uncertainty, generation unit outages and load thermo-sensitivity), reliability modeling, anticipation on demand growth and supply in the investment decision process.…”

“…The model is based on Cepeda and Finon [6] and is expanded to incorporate DR programs and policies. The model has been developed using concepts and tools from system dynamics, which is a branch of control theory applied to economic and management problems.…”