A theory of electricity tariff design for optimal operation and investment

This study addresses the problem of balancing supply- and demand-side operation and investment activities. Existing theory is extended to cover electricity industry models with uncertainty in future conditions and intertemporal linking such as storage and investment. An optimal pricing structure whi...

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Bibliographic Details
Published inIEEE transactions on power systems Vol. 4; no. 2; pp. 606 - 613
Main Authors Kaye, R.J., Outhred, H.R.
Format Journal Article Conference Proceeding
LanguageEnglish
Published New York, NY IEEE 01.05.1989
Institute of Electrical and Electronics Engineers
Subjects
Applied sciences
Australia
Costs
Electrical engineering. Electrical power engineering
Electrical power engineering
Exact sciences and technology
Fuels
Investments
Joining processes
Operation. Load control. Reliability
Power networks and lines
Power system modeling
Power system planning
Pricing
Supply and demand
Uncertainty
Tariffication
Electrical network
Energy management
Economic optimization
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Summary:This study addresses the problem of balancing supply- and demand-side operation and investment activities. Existing theory is extended to cover electricity industry models with uncertainty in future conditions and intertemporal linking such as storage and investment. An optimal pricing structure which takes these into account is presented. It would induce participants (suppliers and consumers) to make profit-maximizing investment and operation decisions which are socially optimal. The structure contains two terms: a short-run marginal cost pricing as well as a new incentive term to account for the interaction of participants at different time points. A probabilistic forecast of pricing structures at future time is required. A justification of the result and three simple illustrative examples are given.< >
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0885-8950
1558-0679
DOI:10.1109/59.193835