Stochastic price modeling of electricity in deregulated energy markets

Author

Kian, Ashkan ; Keyhani, Ali

Author_Institution

Dept. of Electr. Eng., Ohio State Univ., Columbus, OH, USA

fYear

2001

fDate

6-6 Jan. 2001

Abstract

The problem of modeling electricity price dynamics in deregulated energy markets is studied. Since the nature of customers´ energy consumption, market participants´ strategic behavior and the power system reliability indices are stochastic processes, the electricity price model will be stochastic as well. In our analysis, the price of electricity is modeled based on the customers´ hourly consumption, day-ahead/real-time energy price generation and transmission outage schedules (evaluation of the power system reliability indices), spinning reserve requirements, demand elasticity and predicted strategic behavior of market participants.

Keywords

costing; electricity supply industry; modelling; power consumption; power generation scheduling; power system economics; power system reliability; stochastic processes; day-ahead/real-time energy price generation; demand elasticity; deregulated energy markets; electricity modeling; electricity price dynamics; electricity price model; energy consumption; hourly consumption; market participants; power system reliability indices; predicted strategic behavior; spinning reserve requirements; stochastic price modeling; stochastic processes; strategic behavior; transmission outage schedules; Electricity supply industry deregulation; Energy consumption; Power generation; Power system dynamics; Power system modeling; Power system reliability; Predictive models; Real time systems; Stochastic processes; Stochastic systems;

fLanguage

English

Publisher

ieee

Conference_Titel

System Sciences, 2001. Proceedings of the 34th Annual Hawaii International Conference on

Conference_Location

Maui, HI, USA

Print_ISBN

0-7695-0981-9

Type

conf

DOI

10.1109/HICSS.2001.926292

Filename

926292