Félix Fernández

Analysis of power systems expansion processes based on System Dynamics - state-of-the-art

The evolution to electricity markets liberalization has supposed a change of paradigm in the scope of decision-making processes inherent to the expansion of power systems. This is mainly due to the participation in these processes of various autonomous agents who does not always act in coordination. In response to this, the use of simulation approaches is useful to analyze the behavior and interaction of market participants. This paper is focused on conducting a state-of-the-art review about the implementation of System Dynamics (SD) approach to replicate the dynamic of long-term infrastructure investments in power systems. Regarding to this, it has been found that SD has been extensively used both to evaluate the expansion of generation capacity and the impact of investments in transmission network required to interconnect different electricity markets. However, it has not been found an application background of SD to assess the dynamic interaction among investments decisions in generation and transmission. In this context, the main contribution of the paper is to propose basic outlines to analyze the interaction of investments undertaken by agents of generation and transmission under a competitive electricity market by focusing on SD. Finally, this model seeks to be a tool to outline policies that encourage coordination and cooperation among autonomous power market agents.

Multi-criteria valuation of electric energy from Itaipu Binational in the Brazilian power market

The production of clean electrical energy, has acquired in recent decades an important role in energy security. This is the case of the Itaipu Binational Hydropower Plant, which leverages one of the resources that owns Paraguay in condominium with Brazil. Such power plant satisfies almost the entire electricity demand of Paraguay, even existing an energy surplus that, as it is regulated under the binational Treaty, they are assigned to the condominium country.

Inversiones flexibles en el sistema de transmisión bajo incertidumbre basado en opciones reales y teoría de juegos contra la naturaleza

The progress of the power electronic devices and the reduction of their costs have made possible include Flexible Alternative Current Transmission Systems (FACTS) in the power systems. These devices have the ability to modify the parameters of an electrical network. These features make it an attractive strategy to reduce congestion in the power grid, increasing the transfer capability and providing greater controllability of power flows. However, the use of this technology remains limited due to the high investment cost and the absence of proper tools to quantify the economic benefits. Transmission investments under uncertainty have the option to postpone the investment or expand it at a later stage. Thus, within the evaluation should be contemplated the value of the flexibility of these options in the investment portfolio. This value is not possible to incorporate by means of the traditional approach of Net Present Value (NPV). In these cases the appropriate tool is based on the notion of Real Options (RO). This article applies the proposed methodology into the Paraguayan power system where are compared investment portfolios of traditional network reinforcements (transmission lines - TLs) with FACTS device investments. In addition, the investment alternatives in the transmission system are also significantly affected by non-random uncertainties that are present in emerging markets. These uncertainties are analyzed by criteria based on game theory against nature, in order to assess the robustness of the proposed alternatives. Finally, the study case shows that the investment performance is improved by strategically deferring the traditional alternatives during the maturity of the investment option while investing in FACTS, and transmission system could gradually adapt to uncertain electricity market.