Owing to policy action as well as continued cost declines, solar and wind resources are projected to play a central role in many future electricity systems. Since the technological characteristics and cost structures of these resources differ significantly from traditional thermal technologies, many have questioned how market designs will need to adapt to support such a system. While the core theory of electricity market design is compatible with variable output and low marginal costs, the growth of wind and solar has exposed flaws in the way the theoretical design is implemented in most markets. This dissertation explores three facets of one particular flaw, namely, the failure to adequately price electricity during times of scarcity. Chapter 2 discusses inefficient consumption decisions caused by the incomplete reflection of time-varying wholesale electricity prices in retail rates. Next, Chapter 3 investigates the effect of non-convexities in wholesale market price formation. Then, Chapter 4 explores the role of risk trading in the long-term capacity mix. Lastly, Chapter 5 summarizes and discusses possible directions for future work.

Creator

• Mays, Jacob

DOI

• https://doi.org/10.21985/n2-j5k8-gq84

Subject

• Operations research

Language

• en

Alternate Identifier

• http://dissertations.umi.com/northwestern:14660
• etdadmin_upload_662781

Keyword

• Market design
• Power systems

Date created

• 2019-01-01

Resource type

• Dissertation

Rights statement

• In Copyright