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A Review of Simulation Usage in the New Zealand Electricity Market

  • Golbon Zakeri
  • Geoff Pritchard
Conference paper
Part of the Springer Proceedings in Mathematics & Statistics book series (PROMS, volume 231)

Abstract

In this chapter, we outline and review the application of simulation on the generation offer and consumption bids for the New Zealand electricity market (NZEM). We start by describing the operation of the NZEM with a particular focus on how electricity prices are calculated for each time period. The complexity of this mechanism, in conjunction with uncertainty surrounding factors such as consumption levels, motivates the use of simulation. We will then discuss simulation–optimization methods for optimal offer strategies of a generator, for a particular time period, in the NZEM. We conclude by extending our ideas and techniques to consumption bids and interruptible load reserve offers for major consumers of electricity including large manufacturers such as the steel mill.

Keywords

Electricity markets Price simulation Demand response 

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of Engineering ScienceUniversity of AucklandAucklandNew Zealand
  2. 2.Department of StatisticsUniversity of AucklandAucklandNew Zealand

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