The federal government, a huge purchaser of electricity, could buy more power from renewable sources, said Dr. James J. MacKenzie of the World Resources Institute, an environmental and economics research firm.
It would also direct the federal government, the largest single purchaser of electricity in the world, to buy 10percentt of its power from renewable resources.
Austin Energy, a city-owned utility, has struck a $2.3 billion, 20-year deal to be the sole purchaser of electricity from Nacogdoches Power, the company that will build the plant for an undisclosed sum.
In fact, the retailer, in this paper, is both the purchaser of electricity for its consumers and the seller of surplus of energy due to its wind power generation.
But it will not spend that money until it has long-term commitments from purchasers to buy the electricity.
They do not, however, address the most immediate consequence of the crisis -- the ruinously high prices that the state government, which has replaced the utilities as the primary purchaser of power, is paying for electricity.
In addition, it has to be noted that prices for final consumption are based on the purchaser price principle, i.e. electricity tax, etc. still positively affect the development of the purchaser prices.
According to the simulation results, several conclusions can be drawn when comparing the proposed GSM bidding mechanism to the equilibrium state of HLM: the clearing price decreases, the total transaction volume increases, the profits of electricity generators decreases, and the overall benefits of purchasers increases.
2) Presenting a method to achieve an optimal electricity bidding/offering strategy for retailers considering a dual role (a purchaser of clients' obligated demand and/or seller of surplus of renewable energy) rather than a single role (a purchaser in the conventional studies).
