Investigation of the impact of demand elasticity and system constraints on electricity market using extended Cournot approach

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dc.contributor.advisorFolly, Komla Aen_ZA
dc.contributor.authorYan, Junen_ZA
dc.date.accessioned2016-02-05T07:17:46Z
dc.date.available2016-02-05T07:17:46Z
dc.date.issued2015en_ZA
dc.descriptionIncludes bibliographical referencesen_ZA
dc.description.abstractIn today's electricity supply industry, demand side participation is considered an important factor that can influence the market performance and output effectively. Demand elasticity shows the sensitivity of demand side to the market price, and thus can provide potential adjustment of demand in the market. The purpose of this research is to study the impact of demand elasticity on power producers 'market competition output. An analytical model, called "Extended Cournot model" is developed in this thesis based on the classical Cournot model. Through the integration with conjectural variation model, in which power producers consider both the generation and price level, the extended Cournot model can analyze electricity market results under the conditions of different constraints. In the classical Nash Cournot model, capacity withdrawal exists in most cases especially when transmission constraint occurs. In contrast, the newly developed analytical model ensures that demand is always satisfied at all time. Demand elasticity is incorporated directly into the market results calculation instead of using the market clearing price. This approach enables the load demand to directly obtain the market results by tuning its demand elasticity. The intention is to show that demand side should be more encouraged to participate in the market competition. In the classical economic dispatch, the load demand is highly inelastic. From the load curve, there is only a change of physical volume of demand. The demand responsiveness, which is represented by demand elasticity, has been understated. In this thesis, the hypothesis is that demand elasticity and system constraint have critical influence on the power producers' competition results in terms of market clearing price, individual output and profit. Load demand can make use of demand elasticity to affect its final payment to the market. Such ability is expected to be limited in the case where system constraints, i.e. generation limits and transmission limits, exist. For simplicity, a small network and number of power producers are used in this thesis to investigate the effectiveness of the Extended Cournot model. However, this model can be applied to more complex networks with different market environments.en_ZA
dc.identifier.apacitationYan, J. (2015). <i>Investigation of the impact of demand elasticity and system constraints on electricity market using extended Cournot approach</i>. (Thesis). University of Cape Town ,Faculty of Engineering & the Built Environment ,Department of Electrical Engineering. Retrieved from http://hdl.handle.net/11427/16774en_ZA
dc.identifier.chicagocitationYan, Jun. <i>"Investigation of the impact of demand elasticity and system constraints on electricity market using extended Cournot approach."</i> Thesis., University of Cape Town ,Faculty of Engineering & the Built Environment ,Department of Electrical Engineering, 2015. http://hdl.handle.net/11427/16774en_ZA
dc.identifier.citationYan, J. 2015. Investigation of the impact of demand elasticity and system constraints on electricity market using extended Cournot approach. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Yan, Jun AB - In today's electricity supply industry, demand side participation is considered an important factor that can influence the market performance and output effectively. Demand elasticity shows the sensitivity of demand side to the market price, and thus can provide potential adjustment of demand in the market. The purpose of this research is to study the impact of demand elasticity on power producers 'market competition output. An analytical model, called "Extended Cournot model" is developed in this thesis based on the classical Cournot model. Through the integration with conjectural variation model, in which power producers consider both the generation and price level, the extended Cournot model can analyze electricity market results under the conditions of different constraints. In the classical Nash Cournot model, capacity withdrawal exists in most cases especially when transmission constraint occurs. In contrast, the newly developed analytical model ensures that demand is always satisfied at all time. Demand elasticity is incorporated directly into the market results calculation instead of using the market clearing price. This approach enables the load demand to directly obtain the market results by tuning its demand elasticity. The intention is to show that demand side should be more encouraged to participate in the market competition. In the classical economic dispatch, the load demand is highly inelastic. From the load curve, there is only a change of physical volume of demand. The demand responsiveness, which is represented by demand elasticity, has been understated. In this thesis, the hypothesis is that demand elasticity and system constraint have critical influence on the power producers' competition results in terms of market clearing price, individual output and profit. Load demand can make use of demand elasticity to affect its final payment to the market. Such ability is expected to be limited in the case where system constraints, i.e. generation limits and transmission limits, exist. For simplicity, a small network and number of power producers are used in this thesis to investigate the effectiveness of the Extended Cournot model. However, this model can be applied to more complex networks with different market environments. DA - 2015 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2015 T1 - Investigation of the impact of demand elasticity and system constraints on electricity market using extended Cournot approach TI - Investigation of the impact of demand elasticity and system constraints on electricity market using extended Cournot approach UR - http://hdl.handle.net/11427/16774 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/16774
dc.identifier.vancouvercitationYan J. Investigation of the impact of demand elasticity and system constraints on electricity market using extended Cournot approach. [Thesis]. University of Cape Town ,Faculty of Engineering & the Built Environment ,Department of Electrical Engineering, 2015 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/16774en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentDepartment of Electrical Engineeringen_ZA
dc.publisher.facultyFaculty of Engineering and the Built Environment
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherElectrical Engineeringen_ZA
dc.titleInvestigation of the impact of demand elasticity and system constraints on electricity market using extended Cournot approachen_ZA
dc.typeDoctoral Thesis
dc.type.qualificationlevelDoctoral
dc.type.qualificationnamePhDen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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