A study of the transmission price conjecture in an oligopolistic power market
METADATA ONLY
Loading...
Author / Producer
Date
2007
Publication Type
Conference Paper
ETH Bibliography
yes
Citations
Altmetric
METADATA ONLY
Data
Rights / License
Abstract
This paper presents a conjectured supply function (CSF) equilibrium models of oligopolistic competition among electricity producers formulated as mixed linear complementarity problems (MLCP). Similar to the conjectured supply function approach, a conjectured transmission price (CTP) response function is formulated in order to model how generating companies can influence the transmission price. The model simulates a bilateral market design based on a point-to-point transmission pricing scheme corresponding to the locational marginal pricing (LMP) based congestion management. The focus of this paper is to study the outcome of the market equilibrium by a stepwise increase of each strategic generator's CTP response parameter. An estimation of this parameter will not be within the scope of this paper. The results show that strategic generators behave more profitably when they have some information about how to affect transmission prices. However, depending on where they are located with respect to the congested transmission line, they pursue different policies in terms of manipulating congestion prices. A three-node network is presented to illustrate the application.
Permanent link
Publication status
published
External links
Editor
Book title
2007 IEEE Lausanne Powertech Proceedings
Journal / series
Volume
2
Pages / Article No.
867 - 872
Publisher
IEEE
Event
2007 IEEE Lausanne Powertech
Edition / version
Methods
Software
Geographic location
Date collected
Date created
Subject
Complementarity; Point-to-point; Conjectured transmission price function; Conjectured supply function equilibrium; Transmission market; Oligopolistic power market
Organisational unit
03559 - Andersson, Göran (emeritus)