{"id":1306,"date":"2017-09-05T09:38:25","date_gmt":"2017-09-05T07:38:25","guid":{"rendered":"https:\/\/ceem-dauphine.eu\/?p=1306"},"modified":"2024-09-05T09:43:16","modified_gmt":"2024-09-05T07:43:16","slug":"price-computation-in-electricity-auctions-with-complex-rules-an-analysis-of-investment-signals","status":"publish","type":"post","link":"https:\/\/ceem-dauphine.eu\/en\/price-computation-in-electricity-auctions-with-complex-rules-an-analysis-of-investment-signals\/","title":{"rendered":"Price computation in electricity auctions with complex rules: An analysis of investment signals"},"content":{"rendered":"<p>This paper discusses the problem of defining marginal costs when integer variables are present, in the context of<br \/>\nshort-term power auctions. Most of the proposals for price computation existing in the literature are concerned<br \/>\nwith short-term competitive equilibrium (generators should not be willing to change the dispatch assigned to<br \/>\nthem by the auctioneer), which implies operational-cost recovery for all of the generators accepted in the<br \/>\nauction. However, this is in general not enough to choose between the different pricing schemes. We propose to<br \/>\ninclude an additional criterion in order to discriminate among different pricing schemes: prices have to be also<br \/>\nsignals for generation expansion. Using this condition, we arrive to a single solution to the problem of defining<br \/>\nprices, where they are computed as the shadow prices of the balance equations in a linear version of the unit<br \/>\ncommitment problem. Importantly, not every linearization of the unit commitment is valid; we develop the<br \/>\nconditions for this linear model to provide adequate investment signals. Compared to other proposals in the<br \/>\nliterature, our results provide a strong motivation for the pricing scheme and a simple method for price<br \/>\ncomputation.<\/p>\n<p>Energy Policy 103 (2017)<\/p>\n","protected":false},"excerpt":{"rendered":"This paper discusses the problem of defining marginal costs when integer variables are present, in the context [&hellip;]","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,26],"tags":[],"class_list":["post-1306","post","type-post","status-publish","format-standard","hentry","category-publications-en","category-journal-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/posts\/1306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/comments?post=1306"}],"version-history":[{"count":2,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/posts\/1306\/revisions"}],"predecessor-version":[{"id":1312,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/posts\/1306\/revisions\/1312"}],"wp:attachment":[{"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/media?parent=1306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/categories?post=1306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceem-dauphine.eu\/en\/wp-json\/wp\/v2\/tags?post=1306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}