Market Structure and the Predictability of Electricity System Line Flows: An Experimental Analysis

Robert Thomas has shown, using simulations of experimental results, that the power flow on any line in an electric network is linearly proportional to the total system load when that system is optimally dispatched using accurate generator cost data. By comparison, when offers from generators obtained in a wholesale market that is not perfectly competitive are used to dispatch the system, that relationship between line flow and system load becomes nearly random. These simulations were conducted in a single-sided market environment, however, that is typical of most wholesale market regimes around the world. Here the central dispatcher (ISO, RTO, etc.) accumulates the demand from various buyers and satisfies that load with a least-cost purchase schedule, regardless of price, subject to all of the physical and reliability constraints imposed on the system. If buyers were also able to submit a schedule of bids that are related to price, does the same random relationship between line-flows ...

• Type: Conference
• Year: 2005
• Where: HICSS
• Authors: Nodir Adilov, Thomas Light, Richard E. Schuler, William Schulze, David E. Toomey, Ray Zimmerman
• Keywords: Biometrics, HICSS 2005, Line Flows, Single-sided Market Environment, System Sciences, Wholesale Market