Nodal price volatility reduction and reliability enhancement of restructured power systems considering demand-price elasticity

L. Goel, Qiuwei Wu, Peng Wang

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

With the development of restructured power systems, the conventional "same for all customers" electricity price is getting replaced by nodal prices. Electricity prices will fluctuate with time and nodes. in restructured power systems, electricity demands will interact mutually with prices. Customers may shift some of their electricity consumption from time slots of high electricity prices to those of low electricity prices if there is a commensurate price incentive. The demand side load shift will influence nodal prices in return. This interaction between demand and price can be depicted using demand-price elasticity. This paper proposes an evaluation technique incorporating the impact of the demand-price elasticity on nodal prices, system reliability and nodal reliabilities of restructured power systems. In this technique, demand and price correlations are represented using the demand-price elasticity matrix which consists of self/cross-elasticity coefficients. Nodal prices are determined using optimal power flow (OPF). The OPF and customer damage functions (CDFs) are combined in the proposed reliability evaluation technique to assess the reliability enhancement of restructured power systems considering demand-price elasticity. The IEEE reliability test system (RTS) is simulated to illustrate the developed techniques. The simulation results show that demand-price elasticity reduces the nodal price volatility and improves both the system reliability and nodal reliabilities of restructured power systems. Demand-price elasticity can therefore be utilized as a possible efficient tool to reduce price volatility and to enhance the reliability of restructured power systems. (C) 2008 Elsevier B.V. All rights reserved.
Original languageEnglish
JournalElectric Power Systems Research
Volume78
Issue number10
Pages (from-to)1655-1663
ISSN0378-7796
DOIs
Publication statusPublished - 2008
Externally publishedYes

Keywords

  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering
  • CDFs
  • Demand-price elasticity
  • Nodal price volatility reduction
  • OPF
  • Reliability enhancement
  • Restructured power systems
  • Acoustic generators
  • Computer networks
  • Customer satisfaction
  • Elasticity
  • Electric power systems
  • Electric power transmission networks
  • Electric tools
  • Magnetism
  • Marketing
  • Power electronics
  • Power transmission
  • Sales
  • Strength of materials
  • And nodes
  • Customer damage functions
  • Electricity consumption
  • Electricity demands
  • electricity pricing
  • Elsevier (CO)
  • IEEE-reliability test system
  • Load shifting
  • Nodal pricing
  • Optimal power flow (OPF)
  • price elasticities
  • price volatility
  • reliability enhancement
  • Reliability Evaluation
  • simulation results
  • system reliability
  • Time slot (TS)
  • Electricity
  • Demand–price elasticity
  • ENGINEERING,
  • ELECTRICITY MARKET
  • CONTRACTS
  • MODELS
  • restructured power systems
  • demand-price elasticity
  • nodal price volatility reduction

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