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Title: The use - and misuse - of statistics in evaluating the benefits of restructured electricity markets

Abstract

Statistics have an important role to play in assessing market performance. Too often, though, numbers are used more to make a splash than to enlighten, and upon closer scrutiny, the underlying analyses lack credibility. It is time to move away from a battle of sound bites and toward serious evaluation of how well restructured wholesale electricity markets are working. (author)

Authors:
Publication Date:
OSTI Identifier:
20864969
Resource Type:
Journal Article
Resource Relation:
Journal Name: Electricity Journal; Journal Volume: 20; Journal Issue: 2; Other Information: Elsevier Ltd. All rights reserved
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; STATISTICS; MARKET; ELECTRIC POWER; PERFORMANCE; EVALUATION; WHOLESALE PRICES

Citation Formats

Moody, Diane. The use - and misuse - of statistics in evaluating the benefits of restructured electricity markets. United States: N. p., 2007. Web. doi:10.1016/J.TEJ.2007.01.003.
Moody, Diane. The use - and misuse - of statistics in evaluating the benefits of restructured electricity markets. United States. doi:10.1016/J.TEJ.2007.01.003.
Moody, Diane. Thu . "The use - and misuse - of statistics in evaluating the benefits of restructured electricity markets". United States. doi:10.1016/J.TEJ.2007.01.003.
@article{osti_20864969,
title = {The use - and misuse - of statistics in evaluating the benefits of restructured electricity markets},
author = {Moody, Diane},
abstractNote = {Statistics have an important role to play in assessing market performance. Too often, though, numbers are used more to make a splash than to enlighten, and upon closer scrutiny, the underlying analyses lack credibility. It is time to move away from a battle of sound bites and toward serious evaluation of how well restructured wholesale electricity markets are working. (author)},
doi = {10.1016/J.TEJ.2007.01.003},
journal = {Electricity Journal},
number = 2,
volume = 20,
place = {United States},
year = {Thu Mar 15 00:00:00 EDT 2007},
month = {Thu Mar 15 00:00:00 EDT 2007}
}
  • Has the restructuring of electricity markets led to discriminatory cost allocation? A statistical analysis reveals that in restructured states utilities have disproportionately allocated costs toward residential customers. This trend is absent in states which have not deregulated electricity markets. This difference stands in stark contradiction to what economic theory suggests should have occurred in a normal market situation. (author)
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  • The increasing pressure for network operators to meet distribution network power quality standards with increasing peak loads, renewable energy targets, and advances in automated distributed power electronics and communications is forcing policy-makers to understand new means to distribute costs and benefits within electricity markets. Discussions surrounding how distributed generation (DG) exhibits active voltage regulation and power factor/reactive power control and other power quality capabilities are complicated by uncertainties of baseline local distribution network power quality and to whom and how costs and benefits of improved electricity infrastructure will be allocated. DG providing ancillary services that dynamically respond to the networkmore » characteristics could lead to major network improvements. With proper market structures renewable energy systems could greatly improve power quality on distribution systems with nearly no additional cost to the grid operators. Renewable DG does have variability challenges, though this issue can be overcome with energy storage, forecasting, and advanced inverter functionality. This paper presents real data from a large-scale grid-connected PV array with large-scale storage and explores effective mitigation measures for PV system variability. As a result, we discuss useful inverter technical knowledge for policy-makers to mitigate ongoing inflation of electricity network tariff components by new DG interconnection requirements or electricity markets which value power quality and control.« less