A Quantitative Analysis of Market Opportunity Utilization in Electric Power Companies

In EU countries and several states in the U.S., the wholesale power markets are well developed enough to be utilized by many electric power companies.These companies usually have a trading division which intensively handles all of transactions with fuel and power markets standing between generation and retail divisions, even if they were vertically integrated before liberalization.This study quantitatively evaluates the effects of potential use of market opportunities through the trading division, and compare them under different conditions and constraints.Then we clarify the problem that under which price conditions in the future the trading function will work effectively.