Market outcomes in a congested electricity system with fuel supply network

We formulate a mathematical equilibrium model of an oligopolistic electricity market where generation costs are derived from a fuel supply network. In numerical results for a small test system, the equilibrium electricity prices and quantities along with resulting welfare measures are compared against the results of a computational agent simulation where generators submit supply function parameters based on quadratic costs with reinforcement learning. Results for the equilibrium model with quadratic costs are included as an intermediate step. The qualitatively similar results found by equilibrium model with high computational efficiency indicate the model´s promise for use in infrastructure planning studies.