Showing papers on "Energy market published in 1999"

Competitive procurement of ancillary services by an independent system operator

Abstract: This paper discusses the competitive procurement of ancillary services by an independent system operator (ISO). The paper assumes the existence of an underlying market for energy and explains why this energy market must be accompanied by a market for ancillary services. These services include operating reserves and automatic generation control (AGC) both of which may require generators that are infra-marginal in the energy market to choose between supplying energy or ancillary services. The paper discusses the design of an auction for these services that has formed the basis for the California ISO's ancillary services market. The paper also discusses the real-time dispatch of ancillary services.

The Economics of Energy Market Transformation Programs

Abstract: This paper evaluates three energy-sector market transformation programs: the U.S. Environmental Protection Agency's Green Lights program to promote on-grid efficient lighting; the World Bank Group's new Photovoltaic Market Transformation Initiative; and the federal grain ethanol subsidy. We develop a benefit-cost model that uses experience curves to estimate unit cost reductions as a function of cumulative production. Accounting for dynamic feedback between the demand response and price reductions from production experience raises the benefit-cost ratio (BCR) of the first two programs substantially. The BCR of the ethanol program, however, is approximately zero, illustrating a technology for which subsidization was not justified. Our results support a broader role for market transformation programs to commercialize new environmentally attractive technologies, but the ethanol experience suggests moderately funding a broad portfolio composed of technologies that meet strict selection criteria.

Auctions for ancillary services

Abstract: This paper discusses the procurement of ancillary services in a competitive electricity market. The paper assumes the existence of an underlying market for energy and explains why this energy market must be accompanied by a market for ancillary services. ancillary services include services such as the provision of operating reserves and Automatic Generation Control (AGC) both of which can require infra-marginal generators to choose between supplying energy, or operating reserves and AGC. Ancillary services are crucial for the reliable operation of an electric power system under a regime of competitive generation. Structures for organizing competitive auctions for ancillary services are examined. Initial experience and potential pitfalls from a market using such auctions is also reported.

Price dynamics in the deregulated California energy market

Abstract: The paper evaluates the trading activity on the California power market in the five moths following the opening of the California Power Exchange. Public data is used to depict shifts in the bidding patterns of power suppliers. Further analysis seeks to break down these shifts into system related and market driven shifts. A new index for identifying market power in electric power markets is derived and applied to the available data. The results indicate that at certain load levels, the market may be vulnerable to gaming. The paper also suggests that by acquiring a strategic mix of high and low cost generation, suppliers can significantly increase their opportunities to exert market power. The concept of market power is reexamined in the context of the inter-temporal, inter-market and inter-commodity equilibria of a deregulated electric power market.

FACTS - powerful systems for flexible power transmission

Abstract: emand for electrical energy continues to grow steadily, and is particularly strong in those countries on the threshold of industrialization. For various reasons, electricity grid upgrades, and especially the construction of new transmission lines, cannot keep pace with the growing power plant capacity and energy demand. Finding suitable right-of-ways is particularly difficult in the industrialized countries, and gaining the necessary approval is more time-consuming than ever. In addition, power line construction ties up investment capital that could be used for other projects. Due to this situation, operators are looking for ways to utilize the existing power lines more efficiently. Two areas require special attention. In the first place, there is a need to improve the transient and steady state stability of long lines. This is because some power lines cannot be loaded to anywhere near their natural load rating – let alone the thermal limit rating – due to relatively low stability limits. Action taken in support of stability during and after line faults can improve system reliability just as much as by adding one or more lines. Secondly, the load flow needs to be improved in closely intermeshed networks as the ‘natural’ load flow resulting from the load conditions and existing line impedances is not necessarily the load flow that will minimize the transmission losses. Another aspect is flexibility: a deregulated energy market requires flexible power system operation to ensure that the electricity supply contracts can be fulfilled. Flexible AC Transmission Systems (FACTS) have all the capability grid operators need to meet the challenges presented by the fast-changing energy market.

European Energy and CO 2 Emissions Trends to 2020: PRIMES model v.2

Abstract: The purpose of this article is to present a summary of a consistent European Union (EU) energy and energy-related emissions outlook for the period to 2020. The material presented here is based on quantitative analysis and on a process of communication with and feedback from a number of energy experts and organizations. All the results presented for EU energy trends are based on the PRIMES partial equilibrium model for the European energy system, version 2. The PRIMES model provides simulation of the energy system and the decisions of the agents and the markets, covering in detail several sectors, uses, and technologies. The results of this analysis indicate that the EU will not meet the obligations for greenhouse gas emissions reductions it undertook at Kyoto unless it introduces policy initiatives for the abatement of energy-related emissions. Although the industrial, tertiary, household, and transportation sectors can all make significant contributions to CO2 emissions reductions, the electricity- and s...

PJM: a full service ISO market evolution (Panel on evolution of electricity market structures)

Abstract: The purpose of the paper is to discuss the evolution of the PJM energy market (USA) from a cost-based power pool to the current bid-based PJM market that utilizes locational marginal pricing (nodal pricing) to manage transmission congestion. The paper presents a brief overview of PJM and the PJM market. PJM is a fully functional ISO whose functions include: security coordinator; MAAC regional reliability area of NERC; transmission service provider; power exchange; and regional transmission planning. PJM market statistics for the past year are presented. The paper continues with a discussion of the PJM market evolution to its present form, focusing on the basic characteristics of each stage of development. Future PJM market enhancements are also discussed.

Public Purpose or Private Benefit?: The Politics of Energy Conservation

Abstract: What makes energy conservation an interesting question in public policy? Outline of the book. Theories and themes: interventionist and non-interventionist states, policy networks and communities, the interdependence of policy formation and implementation, energy efficiency and energy conservation, energy market imperfections and barriers to energy saving, energy pricing, why are governments concerned about energy saving? Security of supply, improving economic efficiency, concern for low income households, environmental concerns, how governments intervene to promote energy saving energy policy and policy communities - the development of energy supply 1800-World War II, post-World War II energy policies - pile it high and sell it cheap, the 1973 oil crisis, the development if energy policy communities and networks, efforts to establish energy conservation programmes, energy saving and the gas and electricity industries, demand side management/least cost planning/integrated resource planning, liberalisation and privatisation, changing energy markets and the possible impact on energy conservation, the new environmental agenda of climate change the EU - a brief history of EU energy and environmental policy, carbon/energy tax, SAVE programme, the EU's role in the climate change negotiations post-Rio, the white paper on energy, gas and electricity market liberalisation, the rational planning directive Denmark - political and institutional background, energy market structure, development of energy policy in Denmark, government programmes to promote energy conservation, energy audit/heat survey scheme, heat planning, energy 2000 and energy 21, DSM in Denmark the Netherlands - political and institutional background, energy market structure, energy policy and development of energy conservation in the Netherlands, the national environmental policy plan, the environmental action plan of the energy distribution sectors, the role of combined heat and power(CHP), national environmental policy plan three the UK -political and institutional background, energy market structure, UK energy policy from World War II to 1973, energy policy and energy conservation since 1973, the energy conservation lobby and policy community, government programmes to promote energy saving, national energy action, electrical appliance efficiency, the energy saving trust, the home energy conservation act 1995, will the market deliver energy efficiency? the United States - political and institutional background, energy market structure, US energy policy since World War II, energy conservation programmes from the mid 1970s to the mid 1980s, the development of demand side management(DSM), the 1992 energy policy act, the Clinton administration raises and dashes the hopes of the environment lobby, the US position in the lead-up to Kyoto, energy market liberalisation, the prospects for energy services Australia - political and institutional background, energy market structure, developme

Power production from biomass III. Gasification and pyrolysis R and D and D for industry

Abstract: The Seminar on Power Production from Biomass III. Gasification and Pyrolysis R and D and D for Industry, was held on 14-15 September 1998 in Espoo. The seminar was organised by VTT Energy in co-operation with the University of Groningen, EU-Thermie Programme and Technology Development Centre, Finland (Tekes). Overviews of current activities on power production from biomass and wastes in Europe and in the United States were given, and all European and U. S. demonstration projects on biomass gasification were presented. In Europe, the target is to produce additional 90 Mtoe/a of bioenergy for the market by 2010. This is a huge challenge for the bioenergy sector, including biomass production and harvesting, conversion technology, energy companies, and end users. In USA, U.S. Department of Energy is promoting the Biomass Power Programme to encourage and assist industry in the development and validation of renewable, biomass-based electricity generation systems, the objective being to double the present use of 7 000 MW biomass power by the year 2010. The new Finnish PROGAS Programme initiated by VTT was also introduced. Several gasification projects are today on the demonstration stage prior to entering the commercial level. Pyrolysis technologies are not yet on the demonstration stage on the energy market. Bio-oils can easily be transported, stored and utilised in existing boiler and diesel plants. The proceedings include the presentations given by the keynote speakers and other invited speakers, as well as some extended poster presentations. (orig.)

Investment in natural gas pipelines in the Southern Cone of Latin America

Abstract: Increasing demand for clean energy sources is expanding investment in natural gas infrastructure around the world. Many international projects involve pipelines connecting energy markets in two or more countries. A key feature of investment taking place in Latin America is the convergence of gas and electricity markets. Many projects are being developed to supply gas to new power generation plants needed to meet electricity demand. Construction of a pipeline over the Andes mountains to supply gas from Argentina to energy markets in central Chile was an idea long unfulfilled for political, economic, and technical reasons. Great changes have now taken place in a very short time. The author discusses both the achievements and the challenges to be faced by pipeline developers and Chile's energy sector. He details the benefits of the cooperative effort to consumers in terms of lower energy prices, higher environmental standards, and a more reliable energy system. The experience in Latin America's southern cone shows how technological innovation, economic deregulation, and regional integration make it possible to build major international gas pipeline projects within a competitive framework, and without direct state involvement.

International energy agency agreement on the production and utilization of hydrogen

Abstract: Although hydrogen systems are recognized as viable, sustainable options for meeting the world's energy requirements, technical and economical barriers must first be overcome before worldwide use of hydrogen is realized. Hydrogen is relevant to all of the energy sectors - transportation, buildings, utilities and industry. It can provide storage options for baseload (geothermal), seasonal (hydroelectric) and intermittent (PV and wind) renewable resources, and, when combined with emerging decarbonization technologies, can reduce the climate impacts of continued fossil fuel utilization. Yet advances must be made in hydrogen production, storage, transport and utilization technologies and in the integration of these components into complete energy systems for hydrogen to become a competitive energy carrier. To expedite the advancement of hydrogen technologies, nations have come together under the auspices of the International Energy Agency's (IEA) Hydrogen Program to collaborate and address the important barriers that impede hydrogen's penetration into the world energy market. Through wellstructured, collaborative projects, experts from around the world address many of the technical challenges and long-term research needs that face the hydrogen community. These collaborations have already led to significant advances in renewable hydrogen production and solid storage materials and to the development of tools to evaluate and optimize integrated hydrogen energy systems.

The policy processes and the decline of the British deep-mined coal industry from the mid-1960s to 1995

Abstract: The thesis develops a multi-theoretic framework which has the network approach at its centre but brings in elements from rational choice and complexity theory. Policy- making in the coal industry is seen as being conducted by a number of institutions which have rational interests, are interacting in networks and are a part of complex systems. The thesis also adopts an historical approach and attempts to link the different eras in a more dynamic way than is achieved by the current literature. In two substantive chapters it is argued that: in 1967 fuel policy was captured by the economists working in the Ministry; the reversal of policy in 1974 followed the shift of the power relationships within the policy network; and that the primary objective of the Conservative Governments was the establishment of an efficient and financially viable coal industry within the context of a competitive energy market. The industry's decline to its 1995 level was neither planned nor foreseen until the early 1990s. The thesis also explores why two Plan for Coal investment programmes, 1950 and 1974, failed to halt the industry's long-run decline Indeed it is argued that the implementation of those programmes contributed its problems. It is argued that investment decisions were driven by the short-term interests of the NCB/BC Areas and collieries, often against the long-term interests of the industry. The thesis concludes that the industry was badly served by closed policy processes which failed to take account of rational interests. It also argues that Political Scientists need to include in their analysis the theoretical frameworks used by policy makers.

Energy market projections and differentiated carbon abatement in the European Union

Abstract: We analyze the economic effects of the differentiated targets for carbon abatement in six European Union member states. Our recursively-dynamic model includes a detailed representation of trade and energy consumption and incorporates optimistic projections for future energy markets provided by the European Commission as the Business-as-Usual scenario. In the base case we find that the EU implementation of the Kyoto Protocol implies low overall costs and a relatively even cost distribution across member states. We also show that a less optimistic development in energy efficiency implies higher costs in all countries, especially in those with high abatement costs. Finally, we find that uniform abatement targets increase overall costs marginally but changes the cost distribution significantly, holding total EU emissions constant.

Nuclear fusion: luxurious mirage of a long-term future energy option?

Abstract: The original vision of controlled thermonuclear fusion as the ideal solution of the energy problems of the mankind collides with the reality of a dramatically expensive research with too long-term, too uncertain and too limited perspectives. After more than four decades of scientific and technical research, other five decades would be required to commercialization of fusion reactors according to the constant projections the fusion community has been reiterating since the 1980s. However, alone, the huge cost/progress ratio of the attempts of the last 20 years to develop just one ‘next-step’ experiment and the resulting 10 billion proposal with still unresolved basic engineering/technology problems and highly uncertain physics objectives; this cannot support the anticipated rate of progress. Furthermore, due to their nuclear nature, their inherent large (GWe) size and the very complex and sophisticated technologies, fusion power plants would be strongly limited in meeting ecological, economical and political/social requirements of a future energy mix and in fitting into the already growing trend towards liberalization and restructuring of the energy market. These limitations are increasingly undermining the justification of the immense resources dedicated to research and development of fusion and its attractiveness as a virtually unlimited energy source, particularly in comparison with emerging non-nuclear systems such as those based on fuel cells. Operated initially with natural gas- or coal gas-derived hydrogen and ultimately with renewable hydrogen, fuel cells (in particular the high-temperature ones) are becoming the focus of interest for applications in decentralized power and combined heat and power plants, in centralized power stations in the MW range and in the transport sector. Adequately supported, fuel cell technologies can be expected to be commercially established before a hypothetical demonstration of the scientific feasibility of fusion. After a brief review of the historical evolution of major fusion plans, in particular of the next-step projects in Europe, this paper discusses critically the above mentioned aspects of fusion, addressing primarily the most advanced concept, the ‘tokamak’. Copyright © 1999 John Wiley & Sons, Ltd.

International power trade : the Nordic Power Pool

Abstract: Scandinavia, where countries have traded power for decades, has the world's most developed international market for electricity. Recently the trading system has changed dramatically, moving from the old model of cooperation among the leading vertically integrated utilities in each country, under the Nordel agreement, to competitive market rules. Norway and Sweden established a common power market, Nord Pool, in 1996, and Finland joined in June 1998. This Note examines why Nord Pool came into being, what conditions facilitated its development, and what lessons it provides for World Bank client countries.

A fuzzy logic based expert system for short term energy negotiations

Abstract: An expert system is proposed, based upon fuzzy logic systems (FLSs) to help a utility in preparing a hourly offer to a Spot Energy Market Managing Office (SEMMO). The offer includes amounts of energy and prices (S/M w-hr) for next day dispatch hourly ordered. The energy system is supposed to be hydraulic. A FLS qualifies every offering agent according to its hydrological conditions. This qualification is entered to another FLS to produce prices and available energy profiles for every agent, creating an expert based simulation scenery and thus enacting the user to prepare knowledge based offers. The system is enhanced by adding an additional FLS (several in fact) to deal with private water accumulation and plant dispatch policies, followed by an economic dispatch simulator to adjust final price scheme. Two implementations are presented.

The Convergence of Electric Power and Natural Gas Utilities in the United States: Which Lessons for Europe?

Abstract: Worldwide, for the last two decades, energy network industries have undergone major changes in terms of organization and competitiveness. After restructuring reforms in the transportation, telecom and natural gas sectors, deregulatory initiatives have been taken in the electric power industry to eliminate traditional constraints and protectionism. An new era has begun : in some segment of the value chain, electric monopoly activities are now open to competition. There is lively debate about whether these experiments will succeed and how they should be conducted. In several countries, the electric power sector is experiencing a fundamental transformation from a regulated market place to one exposed to the influence of market forces1. The word 'convergence' of natural gas and electricity industries is progressively used at least in North America and currently in Europe. In the United States, the deregulation process and technological changes are inducing the convergence of energy value chains. This phenomenon is obvious with the wave of mergers among electric and gas utilities and it tends to invade Europe. In this paper, we will focus on a specific characteristic of the emerging competitive energy markets : the convergence of electric power and gas utilities. In the first part, we will present the main drivers of the growing link of gas and electricity industries in the United States. Then, in the second part, we will analyze several impacts of the convergence of electric / gas value chains on the new American energy market organization. Finally, we will wonder which lessons of the American experience can be useful for the European market evolution.

Energy Balance Information System (SIBE)

Abstract: The authors describe the Energy Balance Information System which has the aim of identifying the management criticalities of the energy process, in order to plan actions aimed at energy saving from the point of view both technical and economic, as well as to support the Telecom Italia environmental balance. It is a flexible tool that follows the energy market evolution to constantly help the activity of the function which manages the company energy policy. So far, it has brought about significant savings both in economic and consumption terms; it is expected to allow further savings through the management of the liberalized energy market, by suggesting the best supply conditions. The paper describes the system in its own architecture, suggesting all the possible applications in their various contexts.

Coal and waste: energy and recycling

Abstract: Coal is an abundant fuel resource with worldwide availability and an historically stable price. The use of coal will increase, particularly in developing countries that have large coal reserves. The People’ s Republic of China alone is expected to build more new coal-fired power plants in the next 20 years than the rest of the world combined (Bemtgen, 1995). This will increase worldwide emissions of carbon dioxide (CO 2 ). In addition, as industrialisation increases, so will the amount of various waste materials and the environmental problems associated with their disposal. Cofiring or coprocessing of suitable wastes with coal could displace some coal for energy production or capture part of a larger energy market in the future. This is particularly relevant to reducing emissions of CO 2 . Naturally occurring materials, such as wood waste, are viewed as CO 2 -neutral. Coal-waste co-utilisation may offer an environmentally sound, economic approach to both waste management and energy production since the equipment needed to handle, burn, and process coal can be modified to accept many wastes (including CO 2 -neutral biomass wastes).

Can Renewable Energy Survive Deregulation

Abstract: Renewable energy use is on an upswing, but proponents worry that it will lose out in a strictly competitive energy market.

World Gas Prospects: Which Role for the Middle East?

Abstract: Since the early 1970s, the policies of energy diversification that have been implemented in the industrialized countries and in many developing countries have enabled natural gas to regularly increase its role in the world energy balance. Thus, during the past twenty years, natural gas recorded the highest growth rate among fossil fuels, and its share in the energy market has gradually risen from 18. 9% in 1975 to 23% in 1997. Today, thanks to favorable economic and environmental factors, natural gas has become the fuel of choice on many markets. Indeed, gas is blessed with a certain number of favorable assets (abundant reserves, flexibility, high-performance uses) which give it a major role in all energy demand forecast scenarios. The most spectacular development will indisputably take place in the power generation sector. Endowed with a considerable gas potential, the Middle East will represent an essential source of supply for many industrialized countries and several gas export projects, either by LNG tanker or by pipelines are currently being contemplated. During the past decade, the contribution of natural gas to the energy mix also grew substantially in most Middle Eastern countries. The increase in gas demand should continue at a sustained rate, mainly driven by the power generation sector, petrochemicals and energy consumption by the hydrocarbons industry. These promising prospects for gas demand in most of the markets in the region might lead to the development of an intra-regional network. However, although opportunities exist, the region will have to meet many challenges in order to contribute more largely to the world gas balance in the years to come.