Transition to Centralized Unit Commitment An Econometric Analysis of Colombia's Experience

Álvaro Riascos, Miguel Bernal, Luciano de Castro and Shmuel Oren
Authors registered in the RePEc Author Service: Alvaro J. Riascos Villegas ()

The Energy Journal, 2016, vol. Volume 37, issue Number 3

Abstract: This paper attempts to shed light on the relative merits of centralized electricity markets with multipart bids and dispatch using an MIP-based unit commitment optimization approach vs. self-committed markets with linear energy supply curves. We conduct an empirical study of data from the Colombian market, which in 2009 transitioned from a self-commitment paradigm to a centralized unit commitment approach where generators offer a linear supply function for energy along with start-up costs while the commitment and dispatch are determined by the system operator using MIP-based optimization. The results indicate that the transition to centralized dispatch has resulted in productive efficiency gains through a decrease in production costs. However, these gains have not translated into wholesale price decreases; in fact, wholesale prices increased after the change in the dispatch approach. These results suggest that productive efficiency gains have been captured by suppliers through the exercise of market power.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://www.iaee.org/en/publications/ejarticle.aspx?id=2785 (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
Working Paper: Transition to Centralized Unit Commitment: An Econometric Analysis of Colombia’s Experience (2014)
Working Paper: Transition to Centralized Unit Commitment: An Econometric Analysis of Colombiaâs Experience (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aen:journl:ej37-3-oren

Ordering information: This journal article can be ordered from
http://www.iaee.org/en/publications/ejsearch.aspx

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().