Analyzing market power in a multistage and multiarea electricity and natural gas system

Author

Spiecker, Stephan

Author_Institution

Dept. of Manage. Sci. & Energy Econ., Univ. of Duisburg-Essen, Essen, Germany

fYear

2011

fDate

25-27 May 2011

Firstpage

313

Lastpage

320

Abstract

Strategic behavior by gas traders is likely to affect future gas prices. Within this article a computational game theoretic model is presented which allows assessing market power on the natural gas market and its influence on the electricity market. This model uses typical time segments to represent both seasonal load fluctuations on the natural gas market and hourly load fluctuations on the electricity market. An application is presented covering 40 regions and simultaneously optimizing dispatch and utilization of transmission lines on the power market as well as supply, transmission and storage on the natural gas market. The model is used to evaluate the influence of trader market power in the natural gas market on the electricity market. We compute price changes, sales volume and power plant utilization for three different market power specifications.

Keywords

game theory; natural gas technology; power markets; power transmission economics; power transmission lines; pricing; sales management; computational game theoretic model; electricity market; multiarea electricity; natural gas market; natural gas system; power market; power plant utilization; price changes; sales volume; transmission lines; Electricity; Electricity supply industry; Europe; Fuels; Natural gas; Power generation; Production; Complementarity modeling; electricity system; energy economics; gaming; natural gas system;

fLanguage

English

Publisher

ieee

Conference_Titel

Energy Market (EEM), 2011 8th International Conference on the European

Conference_Location

Zagreb

Print_ISBN

978-1-61284-285-1

Electronic_ISBN

978-1-61284-284-4

Type

conf

DOI

10.1109/EEM.2011.5953030

Filename

5953030