Impact of a Coal Power Plant Closure on a Multi-region Wholesale Electricity Market

Amin Masoumzadeh; Ehsan Nekouei; Tansu Alpcan

doi:10.1109/ISGTEurope.2017.8260183

Impact of a Coal Power Plant Closure on a Multi-region Wholesale Electricity Market

Amin Masoumzadeh, Ehsan Nekouei, Tansu Alpcan

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

6 Citations (Scopus)

Abstract

Closure of a base-load power plant, based on either its aging state, or a national greenhouse reduction scheme, or transition to smart grids, may have a significant impact on wholesale electricity markets. This paper presents a Cournot-based multiregion game model based on nonlinear inverse demand functions to formally analyze the impacts of a base-load plant closure on the price level and volatility (increase), and CO₂ emission (decrease). Using the Hazelwood coal plant closure in Victoria, a state of Australia's National Electricity Market (NEM), as a case study, the simulation results indicate around 30% and 49% price and volatility increase in the wholesale market, and 210 million AU$ (+3.5%) higher annual power bills in Victoria for final consumers. However, being the most stable and least volatile region in NEM, Victoria mostly supports its neighboring regions in terms of price and volatility reduction even after the Hazelwood closure.

Original language	English
Title of host publication	2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe) - Conference Proceedings
Publisher	IEEE
Pages	1-6
ISBN (Print)	9781538619537
DOIs	https://doi.org/10.1109/ISGTEurope.2017.8260183
Publication status	Published - Sept 2017
Externally published	Yes
Event	2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe 2017) - Torino, Italy Duration: 26 Sept 2017 → 29 Sept 2017

Publication series

Name	IEEE PES Innovative Smart Grid Technologies Conference Europe, ISGT-Europe - Proceedings

Conference

Conference	2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe 2017)
Place	Italy
City	Torino
Period	26/09/17 → 29/09/17

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 13 Climate Action

Research Keywords

Coal plant closure
Multi-region electricity market
Nonlinear inverse demand function
Price volatility

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10.1109/ISGTEurope.2017.8260183

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Masoumzadeh, A., Nekouei, E., & Alpcan, T. (2017). Impact of a Coal Power Plant Closure on a Multi-region Wholesale Electricity Market. In 2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe) - Conference Proceedings (pp. 1-6). (IEEE PES Innovative Smart Grid Technologies Conference Europe, ISGT-Europe - Proceedings). IEEE. https://doi.org/10.1109/ISGTEurope.2017.8260183

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title = "Impact of a Coal Power Plant Closure on a Multi-region Wholesale Electricity Market",

abstract = "Closure of a base-load power plant, based on either its aging state, or a national greenhouse reduction scheme, or transition to smart grids, may have a significant impact on wholesale electricity markets. This paper presents a Cournot-based multiregion game model based on nonlinear inverse demand functions to formally analyze the impacts of a base-load plant closure on the price level and volatility (increase), and CO2 emission (decrease). Using the Hazelwood coal plant closure in Victoria, a state of Australia's National Electricity Market (NEM), as a case study, the simulation results indicate around 30% and 49% price and volatility increase in the wholesale market, and 210 million AU$ (+3.5%) higher annual power bills in Victoria for final consumers. However, being the most stable and least volatile region in NEM, Victoria mostly supports its neighboring regions in terms of price and volatility reduction even after the Hazelwood closure.",

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author = "Amin Masoumzadeh and Ehsan Nekouei and Tansu Alpcan",

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Masoumzadeh, A, Nekouei, E & Alpcan, T 2017, Impact of a Coal Power Plant Closure on a Multi-region Wholesale Electricity Market. in 2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe) - Conference Proceedings. IEEE PES Innovative Smart Grid Technologies Conference Europe, ISGT-Europe - Proceedings, IEEE, pp. 1-6, 2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe 2017), Torino, Italy, 26/09/17. https://doi.org/10.1109/ISGTEurope.2017.8260183

Impact of a Coal Power Plant Closure on a Multi-region Wholesale Electricity Market. / Masoumzadeh, Amin; Nekouei, Ehsan; Alpcan, Tansu.
2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe) - Conference Proceedings. IEEE, 2017. p. 1-6 (IEEE PES Innovative Smart Grid Technologies Conference Europe, ISGT-Europe - Proceedings).

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

TY - GEN

T1 - Impact of a Coal Power Plant Closure on a Multi-region Wholesale Electricity Market

AU - Masoumzadeh, Amin

AU - Nekouei, Ehsan

AU - Alpcan, Tansu

PY - 2017/9

Y1 - 2017/9

N2 - Closure of a base-load power plant, based on either its aging state, or a national greenhouse reduction scheme, or transition to smart grids, may have a significant impact on wholesale electricity markets. This paper presents a Cournot-based multiregion game model based on nonlinear inverse demand functions to formally analyze the impacts of a base-load plant closure on the price level and volatility (increase), and CO2 emission (decrease). Using the Hazelwood coal plant closure in Victoria, a state of Australia's National Electricity Market (NEM), as a case study, the simulation results indicate around 30% and 49% price and volatility increase in the wholesale market, and 210 million AU$ (+3.5%) higher annual power bills in Victoria for final consumers. However, being the most stable and least volatile region in NEM, Victoria mostly supports its neighboring regions in terms of price and volatility reduction even after the Hazelwood closure.

AB - Closure of a base-load power plant, based on either its aging state, or a national greenhouse reduction scheme, or transition to smart grids, may have a significant impact on wholesale electricity markets. This paper presents a Cournot-based multiregion game model based on nonlinear inverse demand functions to formally analyze the impacts of a base-load plant closure on the price level and volatility (increase), and CO2 emission (decrease). Using the Hazelwood coal plant closure in Victoria, a state of Australia's National Electricity Market (NEM), as a case study, the simulation results indicate around 30% and 49% price and volatility increase in the wholesale market, and 210 million AU$ (+3.5%) higher annual power bills in Victoria for final consumers. However, being the most stable and least volatile region in NEM, Victoria mostly supports its neighboring regions in terms of price and volatility reduction even after the Hazelwood closure.

KW - Coal plant closure

KW - Multi-region electricity market

KW - Nonlinear inverse demand function

KW - Price volatility

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Y2 - 26 September 2017 through 29 September 2017

ER -

Masoumzadeh A, Nekouei E, Alpcan T. Impact of a Coal Power Plant Closure on a Multi-region Wholesale Electricity Market. In 2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe) - Conference Proceedings. IEEE. 2017. p. 1-6. (IEEE PES Innovative Smart Grid Technologies Conference Europe, ISGT-Europe - Proceedings). doi: 10.1109/ISGTEurope.2017.8260183

Impact of a Coal Power Plant Closure on a Multi-region Wholesale Electricity Market

Abstract

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UN SDGs

Research Keywords

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