Overview of day-ahead and intraday electricity market
Fattah, Md Abu (2020)
2020
Master's Programme in Electrical Engineering
Informaatioteknologian ja viestinnän tiedekunta - Faculty of Information Technology and Communication Sciences
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Hyväksymispäivämäärä
2020-12-23
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-202012189018
https://urn.fi/URN:NBN:fi:tuni-202012189018
Tiivistelmä
Electricity is a commodity, which has many different attributes from other products because of its unique features. It needs a special infrastructure for production, transportation, and consumption. In this thesis, the electricity system is discussed in two subsystems. The flow of electricity happens in the technical subsystem, and monetary value is discussed in the economic subsystem.
Here is an attempt to do a comprehensive review of three different marketplaces: AEMO in Australia, CAISO in California, and Nord Pool in Nordic countries based on literature review and available public information. In these marketplaces, there is continuous or upcoming reform of the energy system, which can be strengthened by integrating different perspectives from current markets. Characteristics for a successful electricity market are also proposed at the end of the thesis.
Currently, CAISO has a centralized wholesale energy market, while Nord Pool and AEMO have also decentralized properties. The critical issue with the centralized CAISO market is that they don’t have intra-day pricing that can be updated continuously when the renewable generation changes. Whereas Nord Pool and AEMO with their decentralized intraday market, has the flexibility to adjust the price according to renewable energy production as close to real-time. This iterative intra-day trading can address the coordination problem related to wind and solar power generation. The downside is that there is a risk of network constrain, which can be improved by analysing the network in more detail.
The limitation of this study is using only three marketplaces where in the future it can be extended to more marketplaces
Here is an attempt to do a comprehensive review of three different marketplaces: AEMO in Australia, CAISO in California, and Nord Pool in Nordic countries based on literature review and available public information. In these marketplaces, there is continuous or upcoming reform of the energy system, which can be strengthened by integrating different perspectives from current markets. Characteristics for a successful electricity market are also proposed at the end of the thesis.
Currently, CAISO has a centralized wholesale energy market, while Nord Pool and AEMO have also decentralized properties. The critical issue with the centralized CAISO market is that they don’t have intra-day pricing that can be updated continuously when the renewable generation changes. Whereas Nord Pool and AEMO with their decentralized intraday market, has the flexibility to adjust the price according to renewable energy production as close to real-time. This iterative intra-day trading can address the coordination problem related to wind and solar power generation. The downside is that there is a risk of network constrain, which can be improved by analysing the network in more detail.
The limitation of this study is using only three marketplaces where in the future it can be extended to more marketplaces