A framework for electricity market monitoring

Teoman Güler, George Gross

Research output: Contribution to conferencePaperpeer-review

Abstract

The experiences to date with the implementation of electricity markets are indicative of less than true competition. Such results are symptoms of flaws in market design which allow market players to behave strategically by exercising market power and, in some extreme cases, manipulating markets. Such behaviors impede the attainment of vibrant competition, which was a key goal in restructuring electricity. The market monitoring notions used in securities and commodity markets can be adapted to electricity markets to minimize the impacts of such misconducts. However, due to the uniqueness of electricity and its markets, market monitoring needs to explicitly take into account the salient features of electricity including its extreme perishability as a commodity and the reliable system operations in parallel with market operations. This paper's objective is to describe a framework for market monitoring that takes explicitly into account the unique characteristics of electricity and electricity markets, the interrelationships of these markets and time-dependent nature of market participants' behaviors. The modular structure of the framework provides good flexibility and sufficient generality in allowing the incorporation of particular models and metrics appropriate for specific jurisdictions. We apply the proposed market monitoring framework for comparatively assessing existing monitoring structures. We discuss some of the associated challenges, including seams issues and effective metric requirements for electricity markets.

Original languageEnglish (US)
StatePublished - Jan 1 2005
Event15th Power Systems Computation Conference, PSCC 2005 - Liege, Belgium
Duration: Aug 22 2005Aug 26 2005

Other

Other15th Power Systems Computation Conference, PSCC 2005
CountryBelgium
CityLiege
Period8/22/058/26/05

Keywords

  • Competitive electricity markets
  • Integration of market and system operations
  • Market manipulation
  • Market monitoring
  • Market power

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Computer Science Applications
  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering

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