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

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)peer-review

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Author(s)

Detail(s)

Original languageEnglish
Title of host publication2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe) - Conference Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1-6
ISBN (Print)9781538619537
Publication statusPublished - Sep 2017
Externally publishedYes

Publication series

NameIEEE PES Innovative Smart Grid Technologies Conference Europe, ISGT-Europe - Proceedings

Conference

Title2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe 2017)
PlaceItaly
CityTorino
Period26 - 29 September 2017

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.

Research Area(s)

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

Citation Format(s)

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. Institute of Electrical and Electronics Engineers Inc., 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: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)peer-review