A theory of electricity tariff design for optimal operation and investment
This work addresses the problem of balancing supply and demand side operation and investment activities. Existing theory is extended to cover electricity industry models with uncertainty in future conditions and inter-temporal linking such as storage and investment. A new optimal pricing structure which takes these into account is presented. It would induce participants (suppliers and consumers) to make profit maximizing investment and operation decisions which are socially optimal. The structure contains two terms: Short Run Marginal Cost pricing as well as a new incentive term to account for the interaction of participants at different time points. A probabilistic forecast of pricing structures at future times is also required. A justification of the result and three simple illustrative examples are given.
- Research Organization:
- Univ. of New South Wales, Kensington, NSW (AU)
- OSTI ID:
- 6261673
- Journal Information:
- IEEE Trans. Power Syst.; (United States), Vol. 4:2
- Country of Publication:
- United States
- Language:
- English
Similar Records
Impact of Large Scale Energy Efficiency Programs On Consumer Tariffs and Utility Finances in India
Housing market capitalization of energy-saving durable good investments
Related Subjects
POLICY AND ECONOMY
20 FOSSIL-FUELED POWER PLANTS
ELECTRIC POWER INDUSTRY
TARIFFS
COST
DESIGN
INVESTMENT
MATHEMATICAL MODELS
OPTIMIZATION
THEORETICAL DATA
DATA
INDUSTRY
INFORMATION
NUMERICAL DATA
296000* - Energy Planning & Policy- Electric Power
290200 - Energy Planning & Policy- Economics & Sociology
200106 - Fossil-Fueled Power Plants- Economics