Title :
Dynamic LMP response under alternative price-cap and price-sensitive demand scenarios
Author :
Li, Hongyan ; Sun, Junjie ; Tesfatsion, Leigh
Author_Institution :
Iowa State Univ., Ames, IA
Abstract :
This study investigates the complicated nonlinear effects of demand-bid price sensitivity and supply-offer price caps on locational marginal prices (LMPs) for bulk electric power when profit-seeking generators can learn over time how to strategize their supply offers. Systematic computational experiments are conducted using AMES, an open-source agent-based test bed developed by the authors. AMES models a restructured wholesale power market operating through time over an AC transmission grid subject to line constraints, generation capacity constraints, and strategic trader behaviors.
Keywords :
power generation economics; power grids; power markets; pricing; AC transmission grid; AMES models; alternative price-cap; dynamic LMP response; generation capacity constraints; line constraints; locational marginal prices; price-sensitive demand scenarios; profit-seeking generators; strategic trader behaviors; AC generators; Costs; ISO; Mesh generation; Power generation; Power markets; Power systems; Pricing; Sun; Testing; AMES; MISO market protocols; Restructured wholesale power markets; agent-based test bed; capacity withholding; demand-bid price sensitivity; learning; locational marginal prices; market power; price spiking; price volatility; strategic pricing; supply-offer price caps;
Conference_Titel :
Power and Energy Society General Meeting - Conversion and Delivery of Electrical Energy in the 21st Century, 2008 IEEE
Conference_Location :
Pittsburgh, PA
Print_ISBN :
978-1-4244-1905-0
Electronic_ISBN :
1932-5517
DOI :
10.1109/PES.2008.4596069
