Impact of inter-regional energy trade on the net welfare of an individual market

Anni Huang, Sung Kwan Joo, Jin Ho Kim

Research output: Chapter in Book/Report/Conference proceedingConference contribution

3 Citations (Scopus)

Abstract

Improved market efficiency from combining markets through inter-regional market coordination can lead to significant changes in the consumer and producer surplus of an individual market since inter-regional energy trading can significantly alter energy prices and market shares across various regions. It is necessary to study the impacts of inter-regional energy trading on the net welfare of an individual market as the volumes of inter-regional energy trading continue to grow. Energy trading between regions increases the overall social welfare of markets unless uneconomic power flow occurs between those regions. Inter-regional energy trade may have different implications for the consumers and generators of an individual market, depending whether they are in an importing market or in an exporting market. This paper investigates how inter-regional energy trade affects the net we Ifare of an individual market in interconnected electricity markets. A numerical example is presented to validate the analytical results developed in the paper.

Original languageEnglish
Title of host publicationProceedings of the 13th International Conference on Intelligent Systems Application to Power Systems, ISAP'05
Pages464-469
Number of pages6
DOIs
Publication statusPublished - 2005
Event13th International Conference on Intelligent Systems Application to Power Systems, ISAP'05 - Arlington, VA, United States
Duration: 2005 Nov 62005 Nov 10

Publication series

NameProceedings of the 13th International Conference on Intelligent Systems Application to Power Systems, ISAP'05
Volume2005

Other

Other13th International Conference on Intelligent Systems Application to Power Systems, ISAP'05
Country/TerritoryUnited States
CityArlington, VA
Period05/11/605/11/10

Keywords

  • Deregulation
  • Electricity markets
  • Power system economics

ASJC Scopus subject areas

  • Engineering(all)

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