Capacity certificate, a step forward in the Iranian power market
Based on theoretical studies and practical experiences in power systems, electricity market by itself cannot create an effective condition for optimal investment in generation capacity (GC) expansion. On the other hand, the political, social, and economic consequences of shortage of power generation...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2019-05-01
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| Series: | IET Generation, Transmission & Distribution |
| Subjects: | |
| Online Access: | https://doi.org/10.1049/iet-gtd.2018.5096 |
| _version_ | 1797948316916383744 |
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| author | Mohammad Heidarizadeh Mohammad Ahmadian |
| author_facet | Mohammad Heidarizadeh Mohammad Ahmadian |
| author_sort | Mohammad Heidarizadeh |
| collection | DOAJ |
| description | Based on theoretical studies and practical experiences in power systems, electricity market by itself cannot create an effective condition for optimal investment in generation capacity (GC) expansion. On the other hand, the political, social, and economic consequences of shortage of power generation are inevitable under any condition. Thus, several incentives have been introduced to support investment in GC. Currently, the capacity payment mechanism is used for this purpose in the Iranian power market. In addition, the mechanism, along with its benefits, is suffering from some inadequacies and inefficiencies. The present study aimed to introduce Iranian power market and the specifications of the capacity mechanism used in this market. Accordingly, a new incentive called ‘Capacity Certificate’ which has been adopted for Iranian power market is modelled and analysed, along with explaining its characteristics. Regarding the advantage of system dynamics, the effect of this mechanism on the long‐term performance of the power market was evaluated from the perspective of the GC expansion and was compared with the capacity payment mechanism. The results revealed that using the capacity certificate mechanism in Iranian power market can be considered as a step forward toward a better system reserve and lower cost. |
| first_indexed | 2024-04-10T21:41:26Z |
| format | Article |
| id | doaj.art-6ff23199a48a48f796106bd9c77d0170 |
| institution | Directory Open Access Journal |
| issn | 1751-8687 1751-8695 |
| language | English |
| last_indexed | 2024-04-10T21:41:26Z |
| publishDate | 2019-05-01 |
| publisher | Wiley |
| record_format | Article |
| series | IET Generation, Transmission & Distribution |
| spelling | doaj.art-6ff23199a48a48f796106bd9c77d01702023-01-19T04:11:43ZengWileyIET Generation, Transmission & Distribution1751-86871751-86952019-05-0113101875188310.1049/iet-gtd.2018.5096Capacity certificate, a step forward in the Iranian power marketMohammad Heidarizadeh0Mohammad Ahmadian1Faculty of Electrical EngineeringAbbaspour College of TechnologyShahid Beheshti UniversityTehranIranFaculty of Electrical EngineeringAbbaspour College of TechnologyShahid Beheshti UniversityTehranIranBased on theoretical studies and practical experiences in power systems, electricity market by itself cannot create an effective condition for optimal investment in generation capacity (GC) expansion. On the other hand, the political, social, and economic consequences of shortage of power generation are inevitable under any condition. Thus, several incentives have been introduced to support investment in GC. Currently, the capacity payment mechanism is used for this purpose in the Iranian power market. In addition, the mechanism, along with its benefits, is suffering from some inadequacies and inefficiencies. The present study aimed to introduce Iranian power market and the specifications of the capacity mechanism used in this market. Accordingly, a new incentive called ‘Capacity Certificate’ which has been adopted for Iranian power market is modelled and analysed, along with explaining its characteristics. Regarding the advantage of system dynamics, the effect of this mechanism on the long‐term performance of the power market was evaluated from the perspective of the GC expansion and was compared with the capacity payment mechanism. The results revealed that using the capacity certificate mechanism in Iranian power market can be considered as a step forward toward a better system reserve and lower cost.https://doi.org/10.1049/iet-gtd.2018.5096Iranian power marketcapacity mechanismcapacity payment mechanismcapacity certificate mechanismpower systemsgeneration capacity expansion |
| spellingShingle | Mohammad Heidarizadeh Mohammad Ahmadian Capacity certificate, a step forward in the Iranian power market IET Generation, Transmission & Distribution Iranian power market capacity mechanism capacity payment mechanism capacity certificate mechanism power systems generation capacity expansion |
| title | Capacity certificate, a step forward in the Iranian power market |
| title_full | Capacity certificate, a step forward in the Iranian power market |
| title_fullStr | Capacity certificate, a step forward in the Iranian power market |
| title_full_unstemmed | Capacity certificate, a step forward in the Iranian power market |
| title_short | Capacity certificate, a step forward in the Iranian power market |
| title_sort | capacity certificate a step forward in the iranian power market |
| topic | Iranian power market capacity mechanism capacity payment mechanism capacity certificate mechanism power systems generation capacity expansion |
| url | https://doi.org/10.1049/iet-gtd.2018.5096 |
| work_keys_str_mv | AT mohammadheidarizadeh capacitycertificateastepforwardintheiranianpowermarket AT mohammadahmadian capacitycertificateastepforwardintheiranianpowermarket |