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Earlier research has shown that adding wind capacity to a network can lower the total annual operating cost of meeting a given pattern of loads by displacing conventional generation. At the same time, the variability of wind generation and the need for higher levels of reserve generating capacity to maintain reliability standards impose additional costs on the system that should not be ignored. The...
The primary goals for moving from a regulated electric supply industry to a deregulated market were to reduce the average costs paid by customers and to promote efficient long-term investment. However, it is still highly debatable whether either of these goals has been realized in the northeastern states. Regulators have rejected the rationale for long-run competitive prices in an energy-only market,...
The SuperOPF provides a framework linking the short-run criterion of "operating reliability" and the long-run criterion of "system adequacy" on an AC network. This is accomplished by allowing for load shedding as an expensive option to meet contingencies. The high cost of "energy-not-served" implies that some equipment can be very valuable in contingencies if it reduces...
In the northeastern electricity markets, regulators generally favor keeping spot prices close to short-run competitive levels, and as a result, some generating units with low capacity factors that are essential for reliability may not earn enough to be financially viable. This is the "missing money" problem, and regulators in New England, New York and PJM have introduced some form of capacity...
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