Differences in Capacity Requirements, Line Flows and System Operability under Alternative Deregulated Market Structures: Simulations Derived from Experimental Trials

How line flows, capacity requirements and system design might be altered under deregulated market structures is explored through simulations of experimentally-obtained loads and generator dispatches under alternative market structures, including a regulated base-case dispatch. Eight generators were located on the Power Web 30 bus simulated transmission network, and the 19 buyers were randomly allocated over thirty different trials to busses on the network. Line flows were estimated using a DC optimal power flow routine. Unambiguously, the sum of maximum flows over all lines is lower (by from one to ten percent) under a real-time pricing (RTP) regime, as compared to a simulation of the former regulated regime with fixed price (FP). Furthermore, a demand response program (DRP) is shown to perform nearly as well, resulting in lower maximum line flows in all but one of the allocations. RTP also restores line flow predictability close to operation under regulation.