INTERNATIONAL CONFERENCE ON RENEWABLE ENERGY AND POWER QUALITY (ICREPQ’03)
An Electricity Day-Ahead Market Simulation Model
T. Nogueira1 , A. Vale2 and Z. Vale3
1, 3 Department of Electrical Engineering
Insitute of Engineering, Polytechnique Institute of Porto
Rua Dr. António Bernardino de Almeida, 4200-072 Porto (Portugal)
phone:+351 228 340 500, fax:+351 228 321 159,
e-mail: talex@dee.isep.ipp.pt, zav@dee.isep.ipp.pt
2 Department of Electrical and Computer Engineering
Faculty of Engineering of University of Porto
Rua Dr. Roberto Frias, 4200-465 Porto (Portugal)
phone:+351 225 081819, fax:+351 225 081 440,
e-mail: avale@fe.up.pt
Abstract. Several years have passed since the first efforts
to restructure the electricity sector. Today many countries have
already introduced electricity restructuring reform laws, a
process commonly referred as deregulation. The arguments for
deregulation include expected increased competition, new
system efficiency, lower average costs to consumers and the
promise of future improvement as markets grow in size and
sophistication. The restructuring process has gone beyond the
point of no return. In the European Union there are clear
directives that impose the member states deadlines to
implement competitive markets. Such is the case of Portugal
and Spain, whose governments have decided to establish an
Iberian electricity market.
This paper presents a simulation prototype of a competitive
daily market, including pool and bilateral transactions, inspired
on the system that has been successfully performing in Spain.
The simulator provides users a means to obtain a deeper
knowledge and awareness of a competitive electricity market.
Key words
Electricity markets, simulation model, power producers,
deregulation, power pool.
1. Introduction
For the past few years many countries have undertaken
the restructuring of the el