Electric Power Optimization Centre

http://www.epoc.org.nz

Our research uses mathematical modelling, optimization and statistical tools to comprehend modern electricity markets such as the NZEM, and to analyze and develop methods for efficient generation schemes and demand-side participation.

How can potentially volatile renewable energy sources be optimally integrated into the electricity market?

For example:– Wind power– Solar power– Distributed generation– Wave energy– Tidal power

© Luke Milliron, 2010

Renewable Generation

How can consumers of electricity adjust their load patterns to reduce energy costs?

When is the optimal timeto shut-down operations?

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Operate Shutdown

Trading periods when production line shuts should be taken.

Interruptible Load Price

Energy Price

Source: Graeme Everett, Norske Skog

Demand-side Management

How do we design switching networks that reconfigure automatically in case of failure? Below is an illustration of a least cost capacity expansion to give a self-healing distribution network.

Optimal self-healing expansion: more expensive, but robust to line failures.Least-cost expansion is unreliable.

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demand point

existing linenew demand point

candidate lineselected linezone substationconnection to sourcecandidate switching station

Smart Grid

How efficiently does the market perform, compared to a centrally planned system?

How do electricity market reforms affect market efficiency?

We model:– Asset reallocation– Financial transmission rights– Market monitoring– Futures trading– Scarcity pricing– Emissions trading

Hydro reservoir storage comparison.

Regulation

Every half-hour electricity generators submit offer stacks, specifying the price and amount of power they are willing to sell into the wholesale market.

In markets with imperfect competition, it may be possible to exert market power by increasing the offer prices above true marginal cost.

Diagnosing Market Power Issues

Locational electricity prices at all nodes are recomputed every 5 minutes. This creates a risk for firms that buy and sell power at different locations. How can firms manage this risk?

Benmore

Otahuhu

Time of Day 6am-9am3am-6am

Source: comitfree

Prices over a day at Otahuhu and Benmore.

Hedging Locational Pricing

Directors:Prof. Andy PhipottDr. Golbon Zakeri

Members:Dr. Geoff PritchardDr. Tony DownwardAssoc. Prof. Rosalind Archer

Visit Our Website:http://www.epoc.org.nz

EPOC Members

Amelia White (2012)