Electric Power Optimization Centre
Our research uses mathematical modelling, optimization and
statistical tools to comprehend modern electricity markets such as
the NZEM, and to analyze and develop methods for efficient
generation schemes and demand-side participation.
http://www.epoc.org.nz
Renewable Generation
How can potentially volatile renewable energy sources be optimally
integrated into the electricity market?
For example:
– Wind power
– Solar power
– Distributed generation
– Wave energy
– Tidal power
© Luke Milliron, 2010
Demand-side Management
Cost ($)
How can consumers of electricity adjust their load patterns to
reduce energy costs?
Spot Price
Reserve Price
When is the optimal time
to shut-down operations?
Source: Graeme Everett, Norske Skog
90
80
70
60
50
40
30
20
10
0
Energy Price
Interruptible Load Price
20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 2
4
6
8 10 12 14 16 18
Trading Period
20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Trading periods when production
line shuts should be taken.
TMP1
TMP2
RMPA
RMPB
Operate
Shutdown
Smart Grid
How do we design switching networks that reconfigure
automatically in case of failure? Below is an illustration of a least
cost capacity expansion to give a self-healing distribution network.
demand point
17
5
17
3
17
6
17
17 177
9 8
new demand point
existing line
candidate line
selected line
zone substation
connection to source
candidate switching station
17
017
1
17
4
17
2
16 16
9 8
16
7
16
6
Least-cost expansion is unreliable.
17
5
17
3
17
6
17
17 177
9 8
17
017
1
17
4
17
2
16 16
9 8
16
7
16
6
Optimal self-healing expansion:
more expensive, but robust to line failures.
Storage (Billions m3)
Regulation
How efficiently does the market How do electricity market reforms
perform, compared to a centrally affect market efficiency?
planned system?
Central
Historical
We model:
7
– Asset reallocation
6
5
– Financial transmission rights
4
– Market monitoring
3
– Futures trading
2
– Scarcity pricing
1
0
– Emissions trading
1 13 25 37 49 9 21 33 45 5 17 29 41 1 13 25 37 49 9 21 33 45
2005
2006
2007
2008
Hydro reservoir storage comparison.
2009
Diagnosing Market Power Issues
In markets with imperfect
competition, it may be possible
to exert market power by
increasing the offer prices above
true marginal cost.
Offer Stack
$100
$80
Price (/MWh)
Every half-hour electricity
generators submit offer stacks,
specifying the price and amount
of power they are willing to sell
into the wholesale market.
$60
$40
$20
$0
0
100
200
300
400
500
600
700
Quantity
Hedging Locational Pricing
Dollars
Locational electricity prices at all nodes are
recomputed every 5 minutes. This creates a risk for
firms that buy and sell power at different locations.
How can firms manage this risk?
Otahuhu
120
Source: comitfree
100
80
60
40
Benmore
20
0
Time of Day
3am-6am
6am-9am
Prices over a day at Otahuhu and Benmore.
EPOC Members
Directors:
Prof. Andy Phipott
Dr. Golbon Zakeri
Members:
Dr. Geoff Pritchard
Dr. Tony Downward
Assoc. Prof. Rosalind Archer
Amelia White (2012)
Visit Our Website:
http://www.epoc.org.nz