1. Electric Power Optimization Centre http://www.epoc.org.nz Our research uses mathematical modelling, optimization and statistical tools to comprehend modern electricity markets such as the NZEM, and to analyze and develop methods for efficient generation schemes and demand-side participation.

2. How can potentially volatile renewable energy sources be optimally integrated into the electricity market? For example: –Wind power –Solar power –Distributed generation –Wave energy –Tidal power © Luke Milliron, 2010 Renewable Generation

3. How can consumers of electricity adjust their load patterns to reduce energy costs? When is the optimal time to shut-down operations? 202122232425262728293031323334353637383940414243444546474812345678910111213141516171819 TMP1 TMP2 RMPA RMPB OperateShutdown Trading periods when production line shuts should be taken. Interruptible Load Price Energy Price Source: Graeme Everett, Norske Skog Demand-side Management

4. How do we design switching networks that reconfigure automatically in case of failure? Below is an illustration of a least cost capacity expansion to give a self-healing distribution network. Optimal self-healing expansion: more expensive, but robust to line failures. Least-cost expansion is unreliable. demand point existing line new demand point candidate line selected line zone substation connection to source candidate switching station Smart Grid

5. How efficiently does the market perform, compared to a centrally planned system? How do electricity market reforms affect market efficiency? We model: –Asset reallocation –Financial transmission rights –Market monitoring –Futures trading –Scarcity pricing –Emissions trading Hydro reservoir storage comparison. Regulation

6. Every half-hour electricity generators submit offer stacks, specifying the price and amount of power they are willing to sell into the wholesale market. In markets with imperfect competition, it may be possible to exert market power by increasing the offer prices above true marginal cost. Diagnosing Market Power Issues

7. Locational electricity prices at all nodes are recomputed every 5 minutes. This creates a risk for firms that buy and sell power at different locations. How can firms manage this risk? Benmore Otahuhu Time of Day6am-9am3am-6am Source: comitfree Prices over a day at Otahuhu and Benmore. Hedging Locational Pricing

8. Directors: Prof. Andy Phipott Dr. Golbon Zakeri Members: Dr. Geoff Pritchard Dr. Tony Downward Assoc. Prof. Rosalind Archer Visit Our Website: http://www.epoc.org.nz EPOC Members Amelia White (2012)