EconPapers    
Economics at your fingertips  
 

A static deterministic linear peak-load pricing model for the electricity industry: Application to the Peruvian case

Hans Alayo and Raul Garcia Carpio ()

Energy Economics, 2015, vol. 50, issue C, 202-206

Abstract: This article presents a static deterministic linear peak-load pricing model which finds the optimal mix of generation technologies for a given duration curve. The main contribution of the article is the idea of discretizing the duration curve. Since any real duration curve can be approximated by a discretized one, the optimal capacity mix for real world situation can be derived using a linear programming software. Then, for the model with the discretized duration curve, we derive the centralized optimal solution. Also, we show that applying marginal cost pricing allows for the recovery of all generation costs when the mix of technologies is optimal. Finally, we present an application of the proposed model to the Peruvian case; we comment and compare the results with the real capacity mix of the system for the years 2008–2013.

Keywords: Peak-load pricing; Marginal-cost pricing; Electricity industry (search for similar items in EconPapers)
JEL-codes: C61 C63 D41 L11 L51 L94 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988315001577
Full text for ScienceDirect subscribers only

Related works:
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:eee:eneeco:v:50:y:2015:i:c:p:202-206

DOI: 10.1016/j.eneco.2015.05.005

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().

 
Page updated 2021-05-03
Handle: RePEc:eee:eneeco:v:50:y:2015:i:c:p:202-206