Articles
Hacopian dolatabadi, S.,
Latify, M.A.,
Karshenas, H.R.,
Sharifi, A.M. Energy (3605442)301
The presence of technical and operational constraints within the power generation sector gives rise to negative externalities, resulting in spillover effects that can significantly impact the economic efficiency of power markets. This article endeavors to address these challenges by focusing on the demand side of power systems. Within the article, a demand response-based approach is presented as a means to internalize the negative technical externalities spillovers originating from power plants in day-ahead power markets. This approach involves the responsive demand generating a new service that opens up opportunities for energy interchange within the power market. To effectively internalize these spillovers, the introduced service incorporates both quantity and price adjustments. A discriminatory pricing mechanism for this service is proposed, accompanied by a bi-level optimization problem aimed at determining the elastic responsive demand fraction necessary to deliver the service. Utilizing the proposed scheme facilitates attaining the first-best optimal market solution by alleviating negative spillovers inherent in sub-optimal second-best solutions arising from operational constraints in power plants. Numerical results presented in the article serve to underscore the efficacy of the proposed method, demonstrating its ability to function seamlessly and contribute to the optimization of power market outcomes. © 2024 Elsevier Ltd
Hacopian dolatabadi, S.,
Latify, M.A.,
Karshenas, H.R.,
Sharifi, A.M. IET GENERATION TRANSMISSION & DISTRIBUTION (17518687)17(10)pp. 2401-2418
Economic efficiency is the ultimate goal of all markets, including the electricity market. Several technical and pecuniary restrictions known as externalities in economics literature can significantly affect the economic efficiency of the electricity market. Negative externalities resulting from the operational restrictions of generation units are inherent to electricity markets. In this paper, after reviewing the effects of externalities on the day-ahead electricity markets' economic efficiency using a unit commitment-based model, an innovative and theoretically efficient service-based procedure aimed at internalizing negative externalities in the day-ahead electricity markets is presented. In this way, a new service procured by the energy storage system to provide energy interchange possibilities in the electricity market is introduced. The proposed service uses both price and quantity adjustment methods to internalize externalities. A new discriminatory method for pricing the service and a bi-level optimization problem for determining the capacity of the energy storage system required to provide the service are considered. The consideration of the proposed method facilitates reaching the first-best optimal market solution by alleviating negative externalities existing in the sub-optimal second-best solution in the presence of generation sector operational constraints. Numerical case studies demonstrate the functioning of the proposed externalities internalization scheme.
Hacopian dolatabadi, S.,
Latify, M.A.,
Karshenas, H.R.,
Sharifi, A.M. Energy (3605442)246
Economic efficiency is an important goal of all markets including electricity market. Pricing mechanisms can significantly affect the economic efficiency of electricity market. Non-convexities and negative externalities which are resulted from the quasi-fixed cost and operational restrictions of generation units are inherent in electricity markets and affect the economic efficiency of the pricing mechanisms. Although the non-convexities have been studied in the literature, the negative externalities need to be addressed in more details. In this paper, the effects of externalities on the economic efficiency of electricity pricing are studied. Since the pricing in the day-ahead market is an important issue in the electricity market, this mechanism is studied and analyzed as an instance. Due to the inherent non-convexities in the electricity markets, the pricing mechanisms considering non-convexities are evaluated. Two general approaches of pricing in the presence of non-convexities are the uplift-based pricing and the marginal price modification. In this paper, both methods are extended to consider externalities and approach the real market structure, and then numerical studies are conducted on standard test systems. © 2022 Elsevier Ltd
Iranian Economic Review (10266542)25(3)pp. 397-417
Iran has faced oil and banking sanctions since 2012. Following the sanctions and instability of the exchange rates, the Rial has sharply lost its value. Rising economic unrest has widened the gap between the official exchange rate and parallel market rate. However, the depreciation of Iran’s Rial does not show a uniform trend, and the decline path has been complicated. We know that sanctions against Iran have created new expectations, concerns, and attention. Google Trends has provided an analytic tool for measuring and monitoring people’s expectations based on their Internet search data. This study attempted to analyze and model the exchange rate trends in Iran using sanctions-related expectations extracted from Google Trends. The Google search index (GSI) of the sanctions demonstrated the agent’s expectations. Monthly data and the autoregressive distributed lag (ARDL) method were used for estimation. The results indicated a significant and positive impact of GSI on the unofficial exchange rate (UER) and just a positive impact on the real unofficial exchange rate (RUER). We can conclude that the effects of sanctions appear partly through changes in people’s expectations that can be extracted using GSI. Moreover, the difference in inflation showed a significant positive effect on the market exchange rate in Iran. Thus, an improvement in the expectations through reducing the international tensions and a perspective shift can strengthen the Rial exchange rate. Moreover, the policymaker can control the volatility and depreciation of the exchange rates in Iran by restricting the M2 growth through an appropriate long-run monetary policy. © University of Tehran.
International Journal Of Energy Economics And Policy (21464553)9(5)pp. 433-441
Regional energy planning under uncertainty is an important concept in energy-economy models which makes the planning outcomes closer to reality and enables the decision maker to select the best decision. Reliability of local energy supply and the possibility of long-term access to resources and emissions reduction is an essential step. In this study, an urban energy demand which is supplied by electricity network is investigated with an optimal combination of alternative energy resources such as solar, wind and natural gas during the next 10 years. The optimal combination of fossil energy as well as renewable energies are determined by goal stochastic programming model. Isfahan province in Iran has been selected as a case study. Empirical results indicate that due to the importance of investment and operation costs, the dominant share of energy supply will belong to natural gas, while the shares of solar and wind energies remain constant in the next decade. In sum, the share of solar and wind energies increases by 8% in 10 years and therefore, it is not necessary to increase electricity supply by the network in order to meet annual increasing demand. CO2 and NOx emissions will decrease significantly. © 2019, Econjournals. All rights reserved.
