Entry on the Brazilian renewable power market: a case study

Conferências internacionais sobre o clima, bem como crescente conscientização sobre as questões de sustentabilidade lançaram luz sobre o papel fundamental que as energias renováveis poderiam desempenhar na transição energética. Ao contrário de combustíveis fósseis, elas podem ser regeneradas em um curto período de tempo e, por conseguinte, espera-se que sejam uma parte da solução para reduzir o aquecimento global. O Brasil sempre teve um forte setor hidrelétrico, mas agora está na vanguarda em relação a todas as outras fontes de energias alternativas, como energia eólica, biomassa o energia solar. Estas indústrias são uma promessa para um futuro próspero, graças ao potencial natural do país, bem como uma legislação de apoio, e estão atraindo muitas empresas locais e internacionais. Este estudo tem como objetivo preencher uma lacuna na literatura analisando o exemplo de uma empresa estrangeira que entra no mercado da energia renovável no Brasil. Baseando-se na literatura como um fundo conceptual, um único estudo de caso têm sido realizados para delinear todos os aspectos do processo de entrada. Neste desenvolvimento, relações causais entre as orientações estratégicas e a evolução do negócio foram identificadas. Esta pesquisa traz uma contribuição para as discussões acadêmicas sobre as dinâmicas de entrada no setor de energia renovável através de evidências do mercado brasileiro.

Selection of power market structure using the analytic hierarchy process

Selection of a power market structure from the available alternatives is an important activity within an overall power sector reform programme. The evaluation criteria for selection are both subjective as well as objective in nature and the selection of alternatives is characterised by their conflicting nature. This study demonstrates a methodology for power market structure selection using the analytic hierarchy process (AHP), a multiple attribute decision-making technique, to model the selection methodology with the active participation of relevant stakeholders in a workshop environment. The methodology is applied to a hypothetical case of a State Electricity Board reform in India.

An Analysis of Colombian Power Market Price Behavior from an Industrial Organization Perspective

We analyze the behavior of spot prices in the Colombian wholesale power market, using a series of models derived from industrial organization theory -- We first create a Cournot-based model that simulates the strategic behavior of the market-leader power generators, which we use to estimate two industrial organization variables, the Index of Residual Demand and the Herfindahl-Hirschman Index (HHI) -- We use these variables to create VAR models that estimate spot prices and power market impulse-response relationships -- The results from these models show that hydroelectric generators can use their water storage capability strategically to affect off-peak prices primarily, while the thermal generators can manage their capacity strategically to affect on-peak prices -- In addition, shocks to the Index of Residual Capacity and to the HHI cause spot price fluctuations, which can be interpreted as the generators´ strategic response to these shocks

Controlling market power of vertically integrated firms in electricity networks: demand response of aggregator agents

This article reports the results of an experiment that examined how demand aggregators can discipline vertically-integrated firms - generator and distributor-retailer holdings-, which have a high share in wholesale electricity market with uniform price double auction (UPDA). We initially develop a treatment where holding members redistribute the profit based on the imposition of supra-competitive prices, in equal proportions (50%-50%). Subsequently, we introduce a vertical disintegration (unbundling) treatment with holding-s information sharing, where profits are distributed according to market outcomes. Finally, a third treatment is performed to introduce two active demand aggregators, with flexible interruptible loads in real time. We found that the introduction of responsive demand aggregators neutralizes the power market and increases market efficiency, even beyond what is achieved through vertical disintegration.

Distributed generators as providers of reactive power support - A market approach

Traditionally, ancillary services are supplied by large conventional generators. However, with the huge penetration of distributed generators (DGs) as a result of the growing interest in satisfying energy requirements, and considering the benefits that they can bring along to the electrical system and to the environment, it appears reasonable to assume that ancillary services could also be provided by DGs in an economical and efficient way. In this paper, a settlement procedure for a reactive power market for DGs in distribution systems is proposed. Attention is directed to wind turbines connected to the network through synchronous generators with permanent magnets and doubly-fed induction generators. The generation uncertainty of this kind of DG is reduced by running a multi-objective optimization algorithm in multiple probabilistic scenarios through the Monte Carlo method and by representing the active power generated by the DGs through Markov models. The objectives to be minimized are the payments of the distribution system operator to the DGs for reactive power, the curtailment of transactions committed in an active power market previously settled, the losses in the lines of the network, and a voltage profile index. The proposed methodology was tested using a modified IEEE 37-bus distribution test system. © 1969-2012 IEEE.

Reforming the Market Design of EU Electricity Markets: Addressing the Challenges of a Low-Carbon Power Sector. CEPS Task Force Report, 27 July 2015

This CEPS Task Force Report focuses on whether there is a need to adapt the EU’s electricity market design and if so, the options for doing so. In a first step, it analyses the current market trends by distinguishing between their causes and their consequences. Then, the current blueprint of EU power market design – the target model – is briefly introduced, followed by a discussion of the shortcomings of the current approach and the challenges in finding suitable solutions. The final chapter offers an inventory of solutions differentiating between recommendations shared among Task Force members and non-consensual options.

Review of virtual power plant applications for the power system management and V2G market development

Utilization of renewable energy sources and energy storage systems is increasing with fostering new policies on energy industries. However, the increase of distributed generation hinders the reliability of power systems. In order to stabilize them, a virtual power plant emerges as a novel power grid management system. The VPP has a role to make a participation of different distributed energy resources and energy storage systems. This paper defines core technology of the VPP which are demand response and ancillary service concerning about Korea, America and Europe cases. It also suggests application solutions of the VPP to V2G market for restructuring national power industries in Korea.

Rough Fuzzy Control of SVC for Power System Stability Enhancement

Modern power systems have become more complex due to the growth in load demand, the installation of Flexible AC Transmission Systems (FACTS) devices and the integration of new HVDC links into existing AC grids. On the other hand, the introduction of the deregulated and unbundled power market operational mechanism, together with present changes in generation sources including connections of large renewable energy generation with intermittent feature in nature, have further increased the complexity and uncertainty for power system operation and control. System operators and engineers have to confront a series of technical challenges from the operation of currently interconnected power systems. Among the many challenges, how to evaluate the steady state and dynamic behaviors of existing interconnected power systems effectively and accurately using more powerful computational analysis models and approaches becomes one of the key issues in power engineering. The traditional computing techniques have been widely used in various fields for power system analysis with varying degrees of success. The rapid development of computational intelligence, such as neural networks, fuzzy systems and evolutionary computation, provides tools and opportunities to solve the complex technical problems in power system planning, operation and control.

Transmission loss allocation in a deregulated electrical energy market

This paper presents a new method for transmission loss allocation in a deregulated electrical power market. The proposed method is based on physical flow through transmission lines. The contributions of individual loads to the line flows are used as basis for allocating transmission losses to different loads. With minimum assumptions, that sound to be reasonable and cannot be rejected, a novel loss allocation formula is derived. The assumptions made are: a number of currents sharing a transmission line distribute themselves over the cross section in the same manner; that distribution causes the minimum possible power loss. Application of the proposed method is straightforward. It requires only a solved power flow and any simple algorithm for power flow tracing. Both active and reactive powers are considered in the loss allocation procedure. Results of application show the accuracy of the proposed method compared with the commonly used procedures.

A comparative value of electricity storage within GB market mechanisms

This paper investigates the value of a generic storage system within two GB market mechanisms and one ancillary service provision: the wholesale power market, the Balancing Mechanism and Firm Frequency Response (FFR). Three models are evaluated under perfect foresight and fixed horizon which is subsequently extended to explore the impact of a longer foresight on market revenues. The results show that comparatively, the balancing mechanism represents the highest source of potential revenues followed by the wholesale power market and Firm Frequency Response respectively. Longer horizons show diminishing returns, with the 1 day horizon providing the vast majority of total revenues. However storage power capacity utilization benefits from such long horizons. These results could imply that short horizons are very effective in capturing revenues in both the wholesale market and balancing mechanism whereas sizing of a storage system should take into consideration horizon foresight and accuracy for greater benefit.

EDF and the Brazilian Power Sector

Electricité de France (EDF) is a leading player in the European energy market by being both the first electricity producer in Europe and the world’s leading nuclear plant operator. EDF is also the first electricity producer and supplier in France. However, Europe, EDF’s core market, is currently underperforming: the European sovereign debt crisis is lowering significantly the growth perspective of an energy market that has already reached its maturity. As a consequence, European energy companies are now looking at international markets and especially BRIC economies where economic growth potential remains high. Among them, Brazil is expected to keep its strong economic and electricity demand growth perspectives for the coming decades. Though Brazil has not been considered as a strategic priority for EDF after the Light reversal in 2006, the current economic situation has led the Group to reconsider its position toward the country. EDF’s current presence in Brazil is limited to its stake in UTE Norte Fluminense, a thermal plant, located in the state of Rio de Janeiro. This report investigates the possibility and the feasibility of EDF’s activities expansion in Brazil and what added value it could bring for the Brazilian power market. Considering that the status quo would not allow EDF to take full advantage of Brazil’s future growth, this work is identifying the various options that are currently opened to EDF: market exit, status quo, EDF alone, local partner. For that purpose, this study collects and analyses the latest energy market data as well as generation companies’ information which are necessary to give a relevant overview of the current brazilian power sector and to present EDF strategic options for the country.

Una aproximación al sector eléctrico

Español:Este TFG pretende exponer de un modo sencillo el mercado eléctrico español. Se trata de un tema de elevada complejidad y gran extensión. Con el fin de alcanzar una idea clara, hemos decidido centrarnos en los puntos de mayor relevancia. En las secciones siguientes abordamos cuestiones relativas al mercado mayorista (pool) y minorista español así como la incipiente reforma eléctrica llevada a cabo por el Gobierno. Después de una breve Introducción, la sección 2 enumera una serie de términos que se utilizan con frecuencia en esta área. La sección 3 proporciona algunos antecedentes sobre el sector eléctrico. La sección 4 se refiere al mercado mayorista, en el cual se realiza la compra-venta diaria de electricidad. En él participan los productores, los distribuidores y los comercializadores de electricidad, así como los consumidores cualificados de energía eléctrica. Dentro de éste nos encontramos el mercado a plazo (o forward), el mercado diario (o spot) y el mercado a corto plazo (o de ajuste). La sección 5 trata del mercado minorista, su diseño y composición. Aquí, las empresas encargadas de comercializar energía (que compran en el mercado mayorista a las empresas generadoras) se la venden a los consumidores finales. En la sección 6 se aborda la Reforma Eléctrica, aclarando los cambios sufridos desde su implantación. Los hechos más llamativos a este respecto son: la eliminación de las subastas CESUR y el cambio de la Tarifa de Último Recurso (TUR) a un Precio Voluntario para el Pequeño Consumidor (PVPC). Por último, hay una sección final con las principales conclusiones.

A study of the proposed Diamond Creek Reservoir

Politically the Colorado river is an interstate as well as an international stream. Physically the basin divides itself distinctly into three sections. The upper section from head waters to the mouth of San Juan comprises about 40 percent of the total of the basin and affords about 87 percent of the total runoff, or an average of about 15 000 000 acre feet per annum. High mountains and cold weather are found in this section. The middle section from the mouth of San Juan to the mouth of the Williams comprises about 35 percent of the total area of the basin and supplies about 7 percent of the annual runoff. Narrow canyons and mild weather prevail in this section. The lower third of the basin is composed of mainly hot arid plains of low altitude. It comprises some 25 percent of the total area of the basin and furnishes about 6 percent of the average annual runoff.

The proposed Diamond Creek reservoir is located in the middle section and is wholly within the boundary of Arizona. The site is at the mouth of Diamond Creek and is only 16 m. from Beach Spring, a station on the Santa Fe railroad. It is solely a power project with a limited storage capacity. The dam which creats the reservoir is of the gravity type to be constructed across the river. The walls and foundation are of granite. For a dam of 290 feet in height, the back water will be about 25 m. up the river.

The power house will be placed right below the dam perpendicular to the axis of the river. It is entirely a concrete structure. The power installation would consist of eighteen 37 500 H.P. vertical, variable head turbines, directly connected to 28 000 kwa. 110 000 v. 3 phase, 60 cycle generators with necessary switching and auxiliary apparatus. Each unit is to be fed by a separate penstock wholly embedded into the masonry.

Concerning the power market, the main electric transmission lines would extend to Prescott, Phoenix, Mesa, Florence etc. The mining regions of the mountains of Arizona would be the most adequate market. The demand of power in the above named places might not be large at present. It will, from the observation of the writer, rapidly increase with the wonderful advancement of all kinds of industrial development.

All these things being comparatively feasible, there is one difficult problem: that is the silt. At the Diamond Creek dam site the average annual silt discharge is about 82 650 acre feet. The geographical conditions, however, will not permit silt deposites right in the reservoir. So this design will be made under the assumption given in Section 4.

The silt condition and the change of lower course of the Colorado are much like those of the Yellow River in China. But one thing is different. On the Colorado most of the canyon walls are of granite, while those on the Yellow are of alluvial loess: so it is very hard, if not impossible, to get a favorable dam site on the lower part. As a visitor to this country, I should like to see the full development of the Colorado: but how about THE YELLOW!

Equilibrio de Cournot en el mercado eléctrico.

(EN) My project is about the Cournot equilibrium in the electric power market. The differences in this situacion depend on the number of the firms in the market.