An Electricity Market Analysis Method based on Probabilistic Production Costing Technique
| Authors: | Park Jong-Bae, Konkuk University, Korea, Republic of
Shin Joong-Rin, Konkuk University, Korea, Republic of
Jeong Yun-Won, Konkuk University, Korea, Republic of
Choe Gyu-Ha, Konkuk University, Korea, Republic of
Lee Kwang Y., The Pennsylvania State University, United States |
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| Topic: | 6.3 Power Plants and Power Systems |
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| Session: | Power Plants and Power Systems Modelling and Control |
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| Keywords: | Probabilistic Production Costing Technique, Equivalent Load Duration Curve, Expected Profit and Revenue Evaluation, Marginal Plant. |
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Abstract
This paper presents an efficient algorithm for evaluating the profit and revenue of generating units in a competitive electricity market based on the probabilistic production costing technique. The accurate evaluation of the profit and revenue of generating units for long-term perspectives is one of the most important issues in a competitive electricity market analysis. For efficient calculation of the profit and revenue of generating units under the equivalent load duration curve (ELDC), a new approach to figure out the marginal plants and the corresponding market clearing prices during a time period in a probabilistic manner is developed. The mathematical formulation and illustrative application of the suggested method is presented.
