A simulation model for a competitive generation market

Author

Otero-Novas, Irene ; Meseguer, Claudia ; Batlle, Carlos ; Alba, Juan J.

Author_Institution

Inst. de Investigacica Tecnologica, Univ. Pontificia Comilles, Madrid, Spain

Volume

15

Issue

1

fYear

2000

fDate

2/1/2000 12:00:00 AM

Firstpage

250

Lastpage

256

Abstract

The simulation of a wholesale electricity market should go beyond a simple optimization based on the operating costs of the generating units. A model of a competitive electricity market must consider the market structure, the strategy of the market participants and any other factor that lead to prices different from costs. This paper presents COSMEE, a model of a wholesale electricity market based on simple bids, that estimates expected bid prices and quantities, system hourly prices and generation schedules, taking into account the bidding strategies of generators and the structure of the market. The model reflects the profit-maximizing behavior of the market agents, subject to different types of constraints. COSMEE has been used to simulate a real wholesale market

Keywords

costing; electric power generation; electricity supply industry; power system analysis computing; power system economics; software packages; tariffs; COSMEE; competitive generation market; computer simulation; expected bid prices; expected bid quantities; generating unit operating costs; generation schedules; market participants strategy; market structure; profit-maximizing behavior; simulation model; system hourly prices; wholesale electricity market; Computational modeling; Cost function; Electricity supply industry; Iterative methods; Power generation; Power generation economics; Pricing; Production; Risk management; Stability;

fLanguage

English

Journal_Title

Power Systems, IEEE Transactions on

Publisher

ieee

ISSN

0885-8950

Type

jour

DOI

10.1109/59.852129

Filename

852129