Environmental Engineering Reference
In-Depth Information
Australia
Between 1994 and 1997, in the state of Victoria the VicPool market used to operate. This
was very similar to the England and Wales pool. The system operator set ex post system
marginal prices for each half-hour respectively. Generation and demand side bids and offers
on a rolling seven-day cycle could be submitted. Participants could alter their bids and offers
up to a day ahead based on indicative prices released by the system operator. The VicPool,
like the England and Wales pool, was a mandatory market. Australia now has a mandatory
National Electricity Market (NEM). Under this market generators and suppliers submit bids
and offers a day ahead. The market operator NEMMCO then runs a scheduling program to
calculate the ex ante system marginal price fi ve minutes ahead of time for the next fi ve
minutes. Deviations from the projected schedule are met by ancillary services. The effective
trading period is a half-hour and settlement prices are calculated as the time-weighted average
of the fi ve minutes over the half-hour.
New Zealand
An optional spot market (NZEM) with ex post pricing is operated in New Zealand.
Participants submit bids and offers at the day-ahead stage. Forecast prices are issued at
15:00 on the day ahead. Participants can re-bid prices and volumes up to two hours ahead of
dispatch. Bilateral contracts must be notifi ed to the system operator and any deviations are
settled at prices emerging from the NZEM. The majority of participants trade through the
NZEM.
Argentina
Generators and large consumers have the option of participating in a spot market. In addition,
they can enter into bilateral contracts. Suppliers to smaller consumers buy electricity at regu-
lated seasonal prices or directly from generators under bilateral contracts. Seasonal prices are
set by the government every six months based on spot prices. The spot market determines
hourly ex ante prices for the day ahead. The prices can be modifi ed up to an hour ahead if
there are signifi cant changes to the supply/demand balance. Generators bid in their fuel costs
every six months subject to a price cap. Hydro generators determine the value of water every
six months. The market operator CAMMESA calculates marginal generation costs using
predefi ned algorithms and the bid fuel/water prices.
California
California operates an optional power exchange (PX) to set ex ante prices for the day ahead.
Generators and suppliers submit day-ahead bids and offers based on an iterative auction
where the participants can revise their bids and offers up to fi ve times. After each iteration
the PX publishes indicative prices and whether or not participants' bids have been accepted.
The PX submits the fi nal day-ahead schedule to the independent system operator (ISO). At
the same time participants who have not participated in the PX, either because they have
entered into bilateral contracts or have traded on different power exchanges, submit their
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