In this paper, electricy price was redetermined after a disequilibrium shock using hill climbing optimization method. For this purpose, initially we modeled the power market using system dynamics approach, then optimal quantity suplied, optimal quantity demanded and equilibrium price are determined applying optimal linear programming model. The system dynamics model was run for one day and one month (August) in 2010 with VENSIM simulation software. To this end, we assumed market equilibrium and fixed capacity of domestic plants as well as a five percent rise in demand. The results showed that only in one-month period with the possibility of raising import, the market will clear. If so, the equilibrium price will be 299.92 rial/kwh and supply and demand will clear at 16462.7 kwh.
Ali Molaei, M., Manzour, D. & Rezaee, H. (2012). Process of Determining Market Equilibrium Price of Electricity: System Dynamics Approach. Quarterly Journal of Quantitative Economics (JQE), 9(2), 71–86. https://doi.org/10.22055/jqe.2012.10566
MLA
Ali Molaei, M., Manzour, D., & Rezaee, H. "Process of Determining Market Equilibrium Price of Electricity: System Dynamics Approach", Quarterly Journal of Quantitative Economics (JQE), 9, 2, 2012, 71–86. doi: 10.22055/jqe.2012.10566
HARVARD
Ali Molaei, M., Manzour, D., & Rezaee, H. (2012). 'Process of Determining Market Equilibrium Price of Electricity: System Dynamics Approach', Quarterly Journal of Quantitative Economics (JQE), 9(2), pp. 71–86. doi: 10.22055/jqe.2012.10566
CHICAGO
Ali Molaei, M., Manzour, D. & Rezaee, H., "Process of Determining Market Equilibrium Price of Electricity: System Dynamics Approach." Quarterly Journal of Quantitative Economics (JQE), 9 2 (2012): 71–86, doi: 10.22055/jqe.2012.10566
VANCOUVER
Ali Molaei M., Manzour D., Rezaee H. Process of Determining Market Equilibrium Price of Electricity: System Dynamics Approach. Quantitative Economics. 2012;9(2):71–86 (In Persian). doi: 10.22055/jqe.2012.10566
