| Article ID: | iaor19971413 |
| Country: | United Kingdom |
| Volume: | 3 |
| Issue: | 3/4 |
| Start Page Number: | 209 |
| End Page Number: | 221 |
| Publication Date: | Jul 1996 |
| Journal: | International Transactions in Operational Research |
| Authors: | Read E. Grant, Hogan William W., Ring Brendan J. |
| Keywords: | programming: mathematical |
Recent moves around the world to introduce competition into electricity markets have created a need for mechanisms to determine electricity spot prices which provide good incentives for market coordination. Duality theory suggests that such prices can be found by solving a mathematical program. The authors derive implicit prices corresponding to an actual half-hourly dispatch of a full a.c. power system, and discuss the application of spot pricing in New Zealand and the United States.