The role of demand response in electricity market spot price formation. / A importância da reação da demanda na formação dos preços de curto prazo em mercados de energia elétrica.

AUTOR(ES)
DATA DE PUBLICAÇÃO

2010

RESUMO

Given an economic environmental, a fundamental condition for a market be suitable to competition is that must has a plenty of buyers and, in special, those who can react to price signals. The consumers reaction aims at to adjust their energy requirements to the prices according to their disposal to access a certain product or service. As the price increases, the consumers tend to reduce the demanded volume and, on the other hand, when the prices decreases, the consumers increase the demanded volume. The consumers´ reaction to the price changes is characterized by the price elasticity of demand. However, in the electric energy market design, it is common to pay attention to the supply side, taking into account, implicitly, that all demand is inelastic. This work performs an analysis of mechanisms of spot price formation adopted by electric energy markets (i.e. cost based and bid based prices) and, from this context, evaluates the benefits of incentive mechanisms to the demand participation in determining short-term market price as an option to improve the economic efficiency.

ASSUNTO(S)

economic signal mercados de energia elétrica short-term price demand response sinal econômico preços de curto prazo resposta da demanda spot price

ACESSO AO ARTIGO

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