This report is a summary of the papers and presentations made at the Market Design's biennial international conference, held in Stockholm in June of 2001.
The first chapter of this report introduces us to the peak-load problem and its causes in a deregulated energy-market. The second chapter focuses on a theoretical explanation of some of the main principles that most market models apply in different forms:
- The pure price spike model
- A price-based capacity system
- Quantity-based systems
In chapter three, we give an account of the models that have been tried in some of the countries represented at the conference. These models represent different variations of the basic models described in chapter two.
The fourth chapter poses the question of what model to choose. Each model has its pros and cons and will therefore suit different market situations better or worse. The discussion in this chapter focuses on what models will suit what conditions best.
The need for demand side involvement in a deregulated electricity market is pointed out and described in the fifth chapter. During the conference, many speakers gave examples of how the demand side is getting more and more attention. A common view among participants was that demand side involvement will increase in the coming years.
Finally, examples of innovative peak-load pricing techniques are described.