Profitability of electric power producers in japanese regulation market based on statistical analysis of Spanish secondary regulation market price

Tetsuro Asakawa, Shigeru Tamura

Research output: Contribution to journalArticle

Abstract

Profitability of electric power producers is evaluated in this paper when the same secondary regulation market as Spanish one is introduced to Japan. When the power producers participate in the frequency regulation market, they must have the upward output margin for the frequency control, so that the power sale income is reduced while the revenue from the frequency regulation market is generated. These increased and decreased profits when participating in the frequency regulation market are formulated at first in this paper. Based on the formulation, the profitable situation where the power producers should participate in the frequency regulation market is clarified. Using Spanish market data statistics and actual data of JEPX spot market price, the profit of the power producers in the frequency regulation market is simulated. From those results, it is found that there is an economic merit of participating in the frequency regulation market at a specific JEPX spot market price.

Original languageEnglish
Pages (from-to)722-730
Number of pages9
JournalIEEJ Transactions on Power and Energy
Volume139
Issue number12
DOIs
Publication statusPublished - 1 Jan 2019

Keywords

  • Economic evaluation
  • Load frequency control
  • Secondary regulation band market
  • Secondary regulation market
  • Thermal power generation
  • Wind farm

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