This study, carried out for the Australian Energy Market Commission (AEMC), examined the structure and operational mechanisms for a range of gas markets in the US and Europe. read more →
Market Reform was engaged by the ISO/RTO Council (IRC), the umbrella group for the nine US and Canadian electricity system/market operators, to investigate the factors that drive financial investment in generation and other system resource, and how these are influenced by ISO policy/market design decisions and the revenue streams flowing out of the ISO-operated markets. This final report was presented to the IRC’s Annual Board Conference in May 2015. read more →
At the kickoff of its Gas Market Review, the Australian Energy Market Commission (AEMC) conducted a public forum in Sydney. Market Reform was invited to speak to this forum on the evolution of gas markets in other countries, and lessons that might infer for the East Coast gas markets of Australia read more →
This report was prepared for the Australian Energy Market Operator (AEMO) , and was published coincident with the launch of trading at the natural gas supply hub at Wallumbilla in early 2014. Using international experience in the evolution of energy markets as a reference, this paper discusses the key features of a successful trading market, how the market at Wallumbilla and in Eastern Australia more generally might be expected to develop, and steps that might be taken to help it along. read report →
This presentation was delivered by Dr. Larry Ruff to the 2013 annual meeting of the Association of Power Exchanges. It addresses the co-evolution of network energy markets, including the contribution that developments in electricity markets can make to ongoing development of gas markets as they take on increasingly network-like characteristics. read more →
Since 1999, the Australian state of Victoria has operated a natural gas spot market to both determine daily prices for natural gas and develop an optimal schedule for the market based on an LP (Linear Programming) approximation to the underlying inter-temporal nonlinear aspects of the gas flow optimization problem. This market employs a dispatch optimization model and a related market clearing model. Here we present the model employed for both the operational scheduling and price determination. read more →
Many electricity markets are now cleared using Linear Programming (LP) formulations that simultaneously determine an optimal dispatch and corresponding nodal prices, for each market dispatch interval. Although natural gas markets have traditionally operated in a very different fashion, the same basic concept can be applied. read more →
The purpose of this paper is to discuss the role of regional trade in electricity, the costs and benefits of expanding regional trade, some of the obstacles to such expansion and what might be done to reduce these obstacles. Although the discussion often refers to Ontario and its context within Canada and North America, most of the discussion here is general and applies to any large, modern electricity system. read more →
Since electricity restructuring and competition first commenced it has been opposed by an assortment of anti-market naysayers and recalcitrants, some driven by philosophical dislike, and others by the desire to preserve a lucrative status quo. Over the years, these groups have advanced a steady litany of excuses regarding why markets won’t work – which have been just as quickly debunked by real examples of success … The excuses of the anti-marketeers are no more than delaying tactics. Ultimately, competition must prevail. read more →
Recent electricity price rises experienced by eligible customers have led to some discontent with the outcomes of market competition. Rather than a discussion of philosophical pros and cons, this paper takes a pragmatic look at the implications of competition for a medium-to-large sized customer. Specifically, it examines the challenges this creates for customers, given the unique nature of electricity, how customers can respond to these challenges, and potential opportunities this might provide. read more →