• Journal of Electrical Engineering and Technology
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• v.10 no.4
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• pp.1460-1470
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• 2015

This paper presents an approach to solve the long-term generation expansion planning problem of the restructured electricity industry using an agent-based environment. The proposed model simulates the generation investment decisions taken by a particular agent (i.e. a generating company) in a market environment taking into account its competitors’ strategic investment. The investment decision of a particular company is modeled taking into account that such company has imperfect foresight on the future system development hence electricity prices. The delay in the construction of new plants is also explicitly modeled, in order to compute accurately the yearly revenues of each agent. On top of a conventional energy market, several capacity incentive mechanisms including capacity payment and capacity market are simulated, so as to assess their impact on the investment promotion for generation expansion. Results provide insight on the investment cycles as well as dynamic system behavior of long-term generation expansion planning in a competitive electricity industry.

• Proceedings of the Korean Nuclear Society Conference
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• 2001.05a
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• pp.523.2-523
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• 2001

• Environmental and Resource Economics Review
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• v.16 no.1
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• pp.99-127
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• 2007

When the margin between available capacity and demand is thin in a liberalized electricity market, prices rise steeply and system reliability is threatened. The principal response to these circumstances is often an assumption that price spikes and electricity shortages are the result of a failure to build sufficient new supplying facilities. It is, of course, often the case that additional investments in generation and network facilities would improve reliability, and such investments are often needed. But focusing on additional generation and transmission facilities for restoring balance to the grid overlooks the essential fact that reliability is a function of the relationship between supply and demand, imposing unnecessary costs on electric system. When the relationship is out of balance, the search for solutions must consider not only investments supply-side resources but also cost-effective demand-side resources such as accelerated load management, efficiency measures, and price-responsive load programs. Integrating demand resources into electricity markets can add enormous value to the electric system, widening the capacity margin, lowering costs and enhancing system reliability at the same time. This paper studies several challenges now facing electricity markets: demand-side management-especially, economic effects of demand response, potential reliability problems, market and system operation, CBP market improvements and so on. The paper concludes with a series of policy recommendations in five areas: (i) The Effects of efficient improvement to incorporate demand responses and demand-side resources into modem electricity markets, (ii) Fosteing price based demand response and (iii) improving incentive based demand response, (iv) strengthen demand response analysis and valuation, (v) integrating demand response into resource planning and adopting enabling technologies.