Economic surplus for buyers in the day-ahead electricity market
By: Agrawal, Atul
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Material type: 
BookPublisher: Economic & Political Weekly Description: 59(51), Dec 21, 2024: p.35-41.
In:
Economic & Political WeeklySummary: During October 2021 and February–March 2022, Indian power exchanges experienced a significant gap between buy and sell bids. In 309 time blocks, the market cleared at the maximum price due to the bidding behaviour of buyers. This raises questions about the algorithm’s impact on individual surpluses of buyers and sellers. To address this, we propose an alternate approach where the market is cleared at the price point of the last sell offer, allocating available supply to the marginal buyer with the highest valuation. This would ensure buyers’ surplus without changing the total economic surplus.- Reproduced
https://www.epw.in/journal/2024/51/perspectives/economic-surplus-buyers-day-ahead-electricity.html
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Articles
|
Indian Institute of Public Administration | 59(51), Dec 21, 2024: p.35-41 | Available | AR135037 |
During October 2021 and February–March 2022, Indian power exchanges experienced a significant gap between buy and sell bids. In 309 time blocks, the market cleared at the maximum price due to the bidding behaviour of buyers. This raises questions about the algorithm’s impact on individual surpluses of buyers and sellers. To address this, we propose an alternate approach where the market is cleared at the price point of the last sell offer, allocating available supply to the marginal buyer with the highest valuation. This would ensure buyers’ surplus without changing the total economic surplus.- Reproduced
https://www.epw.in/journal/2024/51/perspectives/economic-surplus-buyers-day-ahead-electricity.html
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