Model Analysis of the Russian Electric Power Industry in the Context of Digitalization

DOI

10.2991/assehr.k.201212.040How to use a DOI?

Keywords

electric power industry, digitalization, base model, dynamic probabilistic model, merit order pricing

Abstract

Reforms in the Russian electricity power sector are entering the final stages. However, there are also unsatisfactory results of their implementation along with the positive ones such as the use of the mechanisms of the so-called “ merit order pricing” (MOP) and “capacity adhesion contract” (CAC). These mechanisms are aimed at maintaining the operations of existing and construction of new non-competitive stations by increasing the supplied electricity price from its equilibrium market value. However, the use of these mechanisms creates a serious problem for the Russian economic development. If one considers these mechanisms in the power as a whole, then they contribute to the energy efficiency within the sector through supplied electricity price increase, and, at the same time, they significantly limit the opportunities for economic growth for other industries. This is due to the fact that the supplied electricity price hike entails the need to increase prices for their output. The increase in the supplied electricity price of even by 10% leads to the slowdown in economy. The article analyzes the marginal system of quasi-market pricing in the Russian power industry. A basic model of the activity of economic market participants in the context of digitalization has been developed on the basis of the previously constructed dynamic probabilistic model of economic systems. Its application has proven the negative impact of merit order pricing on the economic system. A better way of handling this and maintaining ineffective economic entities in the power industry, various methods of direct budgetary support while maintaining the market price for supplied electricity should be used instead of using quasi-market merit order pricing.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ivan D. Grachev
AU  - Sergey N. Larin
AU  - Nina M. Baranova
PY  - 2020
DA  - 2020/12/15
TI  - Model Analysis of the Russian Electric Power Industry in the Context of Digitalization
BT  - Proceedings of the International Conference Digital Age: Traditions, Modernity and Innovations (ICDATMI 2020)
PB  - Atlantis Press
SP  - 186
EP  - 190
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.201212.040
DO  - 10.2991/assehr.k.201212.040
ID  - Grachev2020
ER  -