Title :
Strategic bids in liberalized markets
Author :
Domingues, Nuno ; Mendes, Victor
Author_Institution :
Inst. Super. de Eng. de Lisboa, ISEL, Lisbon
Abstract :
This paper presents results of a study concerning the generation strategic bids for a single hour. In this study we incorporated the price and quantity bids. We considered an elastic demand curve, approximated by an affine function, assuming that there is consumer´s reaction and that the market price and the demand are related. Also, we consider the competitors reaction using a parameter that represents the conjectural variation. We studied the market behaviour assuming that the market price is represented by a normal probability function. We studied and compared the market behaviour for two price markets types: the MCP (Market Clearing Pay) and PAB (Pay As Bid).
Keywords :
affine transforms; approximation theory; power markets; pricing; probability; affine function approximation; elastic demand curve; market price; probability function; strategic bid generation; Capacity planning; Costs; Electricity supply industry; Equations; Gaussian distribution; Investments; Mesh generation; Oligopoly; Production; Propagation losses; Conjectural Variation; Elastic Demand; Generation Surplus; Normal Price Distribution; Strategic Bidding;
Conference_Titel :
Electricity Market, 2008. EEM 2008. 5th International Conference on European
Conference_Location :
Lisboa
Print_ISBN :
978-1-4244-1743-8
Electronic_ISBN :
978-1-4244-1744-5
DOI :
10.1109/EEM.2008.4579045