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Spot Pricing of Electricity

  • Fred C. Schweppe
  • Michael C. Caramanis
  • Richard D. Tabors
  • Roger E. Bohn

Table of contents

  1. Front Matter
    Pages i-1
  2. Overview

    1. Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn
      Pages 3-28
  3. The Energy Marketplace

    1. Front Matter
      Pages 29-29
    2. Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn
      Pages 31-53
    3. Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn
      Pages 55-80
    4. Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn
      Pages 81-110
    5. Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn
      Pages 111-128
  4. Theory of Hourly Spot Prices

    1. Front Matter
      Pages 129-129
    2. Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn
      Pages 131-149
    3. Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn
      Pages 151-176
    4. Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn
      Pages 177-203
    5. Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn
      Pages 205-236
    6. Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn
      Pages 237-254
  5. Back Matter
    Pages 255-355

About this book

Introduction

There is a need for fundamental changes in the ways society views electric energy. Electric energy must be treated as a commodity which can be bought, sold, and traded, taking into account its time-and space-varying values and costs. This book presents a complete framework for the establishment of such an energy marketplace. The framework is based on the use of spot prices. In general terms: o An hourly spot price (in dollars per kilowatt hour) reflects the operating and capital costs of generating, transmitting and distributing electric energy. It varies each hour and from place to place. o The spot price based energy marketplace involves a variety of utility-customer transactions (ranging from hourly varying prices to long-term, multiple-year contracts), all of which are based in a consistent manner on hourly spot prices. These transactions may include customers selling to, as well as buying from, the utility. The basic theory and practical implementation issues associated with a spot price based energy marketplace have been developed and discussed through a number of different reports, theses, and papers. Each addresses only a part of the total picture, and often with a somewhat different notation and terminology (which has evolved in parallel with our growing experience). This book was xvii xviii Preface written to serve as a single, integrated sourcebook on the theory and imple­ mentation of a spot price based energy marketplace.

Keywords

Feedback Generator electricity interconnect model network production transmission

Authors and affiliations

  • Fred C. Schweppe
    • 1
  • Michael C. Caramanis
    • 2
  • Richard D. Tabors
    • 1
  • Roger E. Bohn
    • 3
  1. 1.Massachusetts Institute of TechnologyUSA
  2. 2.Boston UniversityUSA
  3. 3.Harvard Business SchoolUSA

Bibliographic information