Energy Efficiency Trading, a New Tool for Long-Term Market Power Reduction in Restructured Environment

In this paper a new concept has been proposed to consider “Energy Efficiency” as a new commodity. The new commodity is based on DSM (Demand Side Management) and especially the strategic conservation techniques in the restructured environment. In the proposed method the ability to improve efficiency is traded as a new commodity by some new players.The effect of new commodity trading is analyzed on the long-term market power reduction in parallel to available long-term solutions that mostly rely on generation solution.The numerical study according to real world data shows the potential and effectiveness of the proposed method.