BackgroundReading

This is a place to collect links to worthwhile papers. Probably we should link to a CiteULike group also.

Energy market terminology - let's make sure we are using correct terminology.

Anderson, Electricity restructuring: a review of efforts around the world and the consumer response, Electricity Journal, April 2009. A review of market restructuring efforts and impacts in Europe, North America, and Australia, talks about practical problems, successes, and failures. The author is executive director of a trade group of large industrial power consumers in the U.S.

Fleten and Pettersen, Constructing Bidding Curves for a Price-Taking Retailer in the Norwegian Electricity Market, IEEE Transactions on Power Systems, 20[2], MAY 2005. Explains the bidding process for retailers in the Norwegian wholesale market, and gives a procedure for constructing optimal bids. Bids are piecewise-linear demand functions.

Holmberg and Newbery, The Supply Function Equilibrium and Its Policy Implications for Wholesale Electricity Auctions. Talks about strategic bidding in oligopolistic wholesale electricity auctions.

Joskow and Tirole, Retail electricity competition, The Rand Journal of Economics 37[4], 2006. Analyzes pricing, competition, and market efficiency in environments with multiple retail energy brokers under a number of relevant assumptions.

Joskow and Tirole, Reliability and competitive electricity markets, The Rand Journal of Economics 28[1], 2007. Examines the relationship between the need to achieve balance and various market distortions, such as market power and the practical impossibility of rationing most price-insensitive customers.

Joskow, Lessons learned from electricity market liberalization, The Energy Journal 29[2], 2008. Lots of interesting insights about the various ways that markets for electric power have developed, including a set of "textbook" policies that seem to be part of the good solutions. Also lots of detail on what has happened in many areas of the world. Retail markets have not worked well everywhere.

Katiraei et al., Microgrids Management: Controls and Operation Aspects of Microgrids, IEEE Power and Energy Magazine, May/June 2008. Discusses the operation of distribution grids (microgrids) with connected distributed energy resources. Right down our alley..

Meeus, Power Exchange Auction Trading Platform Design, Ph.D. Dissertation, Catholic University of Leuven, 2006. Describes the European wholesale energy markets.

Olsen, Johnsen, and Lewis A Mixed Nordic Experience: Implementing Competitive Retail Electricity Markets for Household Customers, Electricity Journal, November 2006. Nice piece on retail power markets in the Nordic countries, where this approach has probably been running longest.

Kempton and Tomic, Vehicle-to-grid power implementation: From stabilizing the grid to supporting large-scale renewable energy, The Energy Journal 29[2], 2008. Using electric vehicles to stabilize the grid and allow for higher usage of variable sources (wind, solar).

Shahidehpour, Yamin, and Li, Market Operations in Electric Power Systems: Forecasting, Scheduling, and Risk Management, IEEE Press / Wiley, 2002. This is a 540-page book that describes the operations of wholesale markets in considerable detail.

Strachan and Dowlatabadi, Distributed generation and distribution utilities, Energy Policy 30[8], 2002. Discussion of the handling of retail-level power generation in a market environment.

(The following three publications  address the issue of weather on electricity demand forecasting, a topic that was discussed Sept 30, 2010 at the meeting of the the Electricity TAC group, cs.umn,edu subgroup.

Taylor, J., & Buizza, R.. “Using Weather Ensemble Prediction in Electricity Demand Forecasting”. ''Intern. J. Forecast.'', 2003, Vol. 19, pp. 57-70. (This paper describes a study which investigates the use of weather ensemble predictions (a weather ensemble prediction consists of 51 scenarios for the future value of a weather variable) in electricity demand forecasting for lead times form one to 10 days ahead.)

Taylor, J., Menezes, L., & McSharry, P., “A Comparison of Univariate Methods for Forecasting Electricity Demand Up to a Day Ahead,” ''Intern. J. Forecast'', Volume 22, Issue 1, January-March 2006, Pages 1-16. (This empirical paper compares the accuracy of six univariate methods for short-term electricity demand forecasting for lead times up to a day-ahead)

Ku, Anne, Demand Forecasting, March/April 2002 issue of Global Energy Business (a draft version of the article is available online. This article discusses the implications of weather forecasts in the context of electricity trading)

Real Time Electricity Monitors -prelude to time-of-use metering apps? (http://blog.mapawatt.com/2009/12/03/energy-tools-for-newbies-part-2-realtime-energy-monitors/ ) Accessed Oct 7th 2010) (this reference has been included in recognition of the fact that at least one sub-set of the members of the Electricity TAC group are investigating in-home usage (and generation perhaps?) of electricity in the context of the availability of markets for buying and selling electricity.)

Möst, D., Fichtner, W., Ragwitz, M., Veit, D., "New methods for energy market modelling", Proceedings of the First European Workshop on Energy Market Modelling using Agent-Based Computational Economics

J. H. Chow, W. De. Mello, and K. W. Cheung, “Electricity Market Design: An Integrated Approach to Reliability Assurance,” Proceedings of the IEEE, Vol. 93, No. 11, pp. 1956-1960, November 2005. (last accessed on the Web October 22, 2010 at the following location)

(this paper supplies some of the fundamentals of market design as adopted by the US ISOs. Though the paper dates back to 2005, the principles it outlines in regard to market design still remain instructive. In particular, note the description of the Day-ahead-Market (DAM), the Real Time Market (RTM) and some mathematical formulae for computing settlement of energy prices)

NYISO Two Settlement Marketplace (Includes:A description of the NYISO Marketplace Two Settlement System. Calculations associated with the Day Ahead and Real Time Market settlements; generator offer submittal to sell energy; load serving entity submittal to bid for procuring energy and the timeline for submitting energy offers and purchase bids.)

New Zealand Electricity Trading Market: (The electricity trading platform design for the TAC currently does not support a Day-Ahead-Market. At a recent meetup of the Electricity TAC group, cs.umn,edu subgroup, one of the issues that surfaced concerned the Day-Ahead-Market (DAM). More specifically, the discussion revolved around whether or not it was necessary to include a model of the DAM to more closely conform to the most commonly encountered electricity market architectures in the world (US, NYISO for example). Interestingly, some market architectures do not have a DAM. New Zealand's NZEM exemplifies one such market. The above-referenced publication describes the New Zealand Electricity Trading Market. A follow up paper ( found here next paper ) analyzes some of the market effects resulting from the absence of a DAM market in the New Zealand electricity trading marketplace. These two papers, singly or in combination may be of interest in deciphering likely market dynamics in a DAM + Real TIme Market (RTM) model versus a purely RTM model akin to the current implementation of the Electricity TAC platform..)