Country-Specific Aspects of Operations of Wholesale Power and Capacity Markets

Abstract

The modern energy sector, in both the Russian Federation and other countries, features the so-called “finer points,” the challenging issues addressed in many analytical documents as well as in published research. The paper discusses key electric power market developments in different countries, the dynamics of indicators measuring their performance, the results of actions taken to date, as well as the approaches to their regulation and influencing the quality of power supplied. We consider the main features of the adopted regulatory models and the basic principles adhered to by electric utilities as means of successful expansion planning and operation under given conditions. 

The purpose of this research is to study individual elements of operations of energy markets and the features of regulation as applied to the models originating from abroad and from domestic wholesale electricity and capacity markets. The study also takes into account the technology-related aspects such as the level of reliability of the power system. The study outlines the development vector for the effective operation of generating companies in a given context. The focus is on the areas with the highest potential in terms of contributing to growth.

The scope of the paper also covers an overview of key trends of electricity market operations, both as practiced abroad and in this country. We present market models and discuss different approaches to determining the level of quality and reliability of electric power supply.