Review Study of Some Models and Methods in Electricity Market

Over last decades, the consumption of electricity has been increased dramatically due to population growth and technology progress. Nowadays electricity is crucial all around the world and as ease and comfort in our lives is highly depended on it. Hence, generating sufficient quantity of electricity and transmitting it properly to users is critical. Electricity can be traded as commodity in a market which is known as electricity market. This market includes suppliers as sellers, buyers and distributers same as any other markets. It is essential to evaluate the needed capacity of electricity to generate and then the proper price to do the trade. It is important for seller to assess the generating capacity which leads to the highest profit for them. Also buyers are looking for the best contract they can get to maximize reliability and minimized price. This paper studies the history of electricity market and the models which are more known and used. The old models are compared to the new strategies to discover which model suits which situation best.