Design and analysis of profit ceiling model for regulating electricity market in developing countries

摘要

This exploration is to design an electricity market regulation model which is applicable to a developing country, specifically to Indian Electricity Market. The proposed Profit Ceiling Model (PCM) emphasizes on the quantitative relation between price level and uplift. The regulatory authority should forecast and promulgate the uplift for the next year to implement the proposed PCM model effectively. The uplift forecast can be treated as an optimization problem where the objective function is to maximize the allowed uplift for next year. In this paper, a new approach termed as Hybrid Genetic Particle Swarm Optimization (GPSO) is used to solve the optimization problem. The proposed GPSO approach is found to be very effective in terms of computational complexity and optimization. The PCM model incorporates the incentive mechanisms for new and aged power plants. The major characteristics of designed PCM model are the regulatory control on price level, profit regulation, uplift evaluation and incentives for investors.