Abstract
This paper describes a modeling of dispersed energy market involving cogeneration systems (CGS) and tariff system with multi quality classes. Regional dispersed energy supply systems are expected to improve the energy efficiency and the environmental pollution issues since they provide electric power and thermal energy simultaneously. Electric power wheeling and thermal energy transportation expand their potential benefits. At the same time, multi quality electric power system is also proposed. These diversification of energy supply options can achieve higher economic efficiency in the context of economic theories. However, since the power distribution system is provided by the utility, the theoretical optimality derived by the perfect competitiveness is not guaranteed in the market. The imperfectness of market condition will affect the electric power price, wheeling price and the contribution of CGS. This study develops a simulation model involving three players, i.e. utility, cogenerator and consumer. Electric power wheeling, heat transportation, the capacity of CGS as well as equipment and equilibrium prices of electric power are solved simultaneously. Multi quality tariff system is also involved. The model deals with two different market conditions - the perfect competition and Stackelberg behavior employing two level optimization. The simulation results exhibit the various effects of market conditions.
