30. Multi-Area Power Market Simulator Tavares Maria Natalia, Vilela Sonia O. (Proceedings, Hydro 2003, Vol. I, Croatia, pp. 251–257). Abstract This paper describes the main principles to compute the nodal marginal costs and nodal prices of a mixed generation system, with hydro, reversible hydro and thermal power plants, using a high level transmission network. It also presents a comprehensive set of results for some hydrological scenarios and three different applications in electricity market. The main objective of the paper is to present a tool enabling the improvement of the power market strategies. It will be stressed an application of the model consisting in establish bids for a reversible hydro plant with a great regulating reservoir capacity, and chosen the best market to offer. Two more applications are presented: the analysis of high voltage transmission lines of an equivalent electric network, identifying congestion in physical and economic terms; the indication, for producers of deficit areas of generation/consumption, of what might be a good opportunity for location of new non hydro plants. These applications used the VALORAGUA software model, a tool used in REN, S.A. Portuguese National Grid, for operation planning of electric power system. The plan of the paper is as follows: Section 1 briefly introduces the approach and the methodology used, stressing the calculation of the marginal value of water for each hydro reservoir and the benefits of high voltage transmission lines. Section 2 presents a case study, some results and the three applications above referred. Section 3 discusses the possibility to use VALORAGUA model in market operation, to help in choosing the best strategy for hydro plants, to reduce the risk in terms of hydrology, to define bids and to analyze the high voltage transmission line linking several markets. Section 4 presents the most important conclusions. Top Keywords Marginal costs, Mixed generation, Hydro, Hydrological scenarios, Tool, Power market strategies, Reservoir capacity. Top |