GenCos- Optimal Bidding Strategy Considering Market Power and Transmission Constraints: A Cournot-based Model
Restructured electricity markets may provide
opportunities for producers to exercise market power maintaining
prices in excess of competitive levels. In this paper an oligopolistic
market is presented that all Generation Companies (GenCos) bid in a
Cournot model. Genetic algorithm (GA) is applied to obtain
generation scheduling of each GenCo as well as hourly market
clearing prices (MCP). In order to consider network constraints a
multiperiod framework is presented to simulate market clearing
mechanism in which the behaviors of market participants are
modelled through piecewise block curves. A mixed integer linear
programming (MILP) is employed to solve the problem. Impacts of
market clearing process on participants- characteristic and final
market prices are presented. Consequently, a novel multi-objective
model is addressed for security constrained optimal bidding strategy
of GenCos. The capability of price-maker GenCos to alter MCP is
evaluated through introducing an effective-supply curve. In addition,
the impact of exercising market power on the variation of market
characteristics as well as GenCos scheduling is studied.
[1] A.J. Wood, B.F Wollenberg, Power generation operation and control,
2nd ed., New York: John Wiley & Sons, Inc., 1996.
[2] Y. Fu, M. Shahidehpour and Z. Li, "Security-constrained unit
commitment with AC constraints," IEEE Trans. Power Systems, vol. 20,
no.2, pp.1001-1013, May. 2005.
[3] Z. Li and M. Shahidehpouri, "Security-constrained unit commitment for
simultaneous clearing of energy and ancillary service markets," IEEE
Trans. Power Systems, vol. 20, no.2, pp.1079-1088, May. 2005.
[4] C. Richter and G.B. Sheble, "A profit-based unit commitment GA for
the competitive environment," IEEE Trans. Power Systems, vol. 15,
no.2, pp.715-721, May. 2000.
[5] B. Pokharel, GB. Shrestha, T. Lie and S. Fleten, "Profit based unit
commitment in competitive markets," Int. Conference on Power System
Technology, pp. 1728-1733, Nov. 2004.
[6] L.K. Yu and Y.H. Song, "Short-term generation scheduling of thermal
units with voltage security and environmental constraints," IEE Proc.
Gener. Transm. Distrib., vol. 144, no. 5, pp. 469-476, Sep. 1997.
[7] H. Yamin and M. Shahidehpour, "Unit commitment using a hybrid
model between lagrangian relaxation and genetic algorithm in
competitive electricity market," Electric Power System Research, 68,
pp. 83-92, May.2004.
[8] C.P. Cheng and C.C. Liu, "Unit commitment by lagrangian relaxation
and genetic algorithm," IEEE Trans. Power Systems, vol. 15, no.2,
pp.707-714, May. 2000.
[9] M.Y. Sharkh and H. Chen, "A fuzzy evolutionary programming-based
methodology for security-constrained generation maintenance
scheduling," Electric Power System Research, 67, pp. 67-72, May.
2003.
[10] H. Yamin, A. Agtash and M. Shahidehpour, "Security-constrained
optimal scheduling for GenCos," IEEE Trans. Power Systems, vol. 19,
no.3, pp.1365-1372, Aug. 2004.
[11] H.Saadat ," Power System Analysis," WCB Mc Graw Hill Companies,
New York, 2002.
[1] A.J. Wood, B.F Wollenberg, Power generation operation and control,
2nd ed., New York: John Wiley & Sons, Inc., 1996.
[2] Y. Fu, M. Shahidehpour and Z. Li, "Security-constrained unit
commitment with AC constraints," IEEE Trans. Power Systems, vol. 20,
no.2, pp.1001-1013, May. 2005.
[3] Z. Li and M. Shahidehpouri, "Security-constrained unit commitment for
simultaneous clearing of energy and ancillary service markets," IEEE
Trans. Power Systems, vol. 20, no.2, pp.1079-1088, May. 2005.
[4] C. Richter and G.B. Sheble, "A profit-based unit commitment GA for
the competitive environment," IEEE Trans. Power Systems, vol. 15,
no.2, pp.715-721, May. 2000.
[5] B. Pokharel, GB. Shrestha, T. Lie and S. Fleten, "Profit based unit
commitment in competitive markets," Int. Conference on Power System
Technology, pp. 1728-1733, Nov. 2004.
[6] L.K. Yu and Y.H. Song, "Short-term generation scheduling of thermal
units with voltage security and environmental constraints," IEE Proc.
Gener. Transm. Distrib., vol. 144, no. 5, pp. 469-476, Sep. 1997.
[7] H. Yamin and M. Shahidehpour, "Unit commitment using a hybrid
model between lagrangian relaxation and genetic algorithm in
competitive electricity market," Electric Power System Research, 68,
pp. 83-92, May.2004.
[8] C.P. Cheng and C.C. Liu, "Unit commitment by lagrangian relaxation
and genetic algorithm," IEEE Trans. Power Systems, vol. 15, no.2,
pp.707-714, May. 2000.
[9] M.Y. Sharkh and H. Chen, "A fuzzy evolutionary programming-based
methodology for security-constrained generation maintenance
scheduling," Electric Power System Research, 67, pp. 67-72, May.
2003.
[10] H. Yamin, A. Agtash and M. Shahidehpour, "Security-constrained
optimal scheduling for GenCos," IEEE Trans. Power Systems, vol. 19,
no.3, pp.1365-1372, Aug. 2004.
[11] H.Saadat ," Power System Analysis," WCB Mc Graw Hill Companies,
New York, 2002.
@article{"International Journal of Business, Human and Social Sciences:60496", author = "A. Badri", title = "GenCos- Optimal Bidding Strategy Considering Market Power and Transmission Constraints: A Cournot-based Model", abstract = "Restructured electricity markets may provide
opportunities for producers to exercise market power maintaining
prices in excess of competitive levels. In this paper an oligopolistic
market is presented that all Generation Companies (GenCos) bid in a
Cournot model. Genetic algorithm (GA) is applied to obtain
generation scheduling of each GenCo as well as hourly market
clearing prices (MCP). In order to consider network constraints a
multiperiod framework is presented to simulate market clearing
mechanism in which the behaviors of market participants are
modelled through piecewise block curves. A mixed integer linear
programming (MILP) is employed to solve the problem. Impacts of
market clearing process on participants- characteristic and final
market prices are presented. Consequently, a novel multi-objective
model is addressed for security constrained optimal bidding strategy
of GenCos. The capability of price-maker GenCos to alter MCP is
evaluated through introducing an effective-supply curve. In addition,
the impact of exercising market power on the variation of market
characteristics as well as GenCos scheduling is studied.", keywords = "Optimal bidding strategy, Cournot equilibrium,market power, network constraints, market auction mechanism", volume = "5", number = "6", pages = "875-7", }