An oligopolistic model for power networks: beyond the incentive of the energy market

In this paper, a model for oligopolistic competition is presented. The incidence of financial transmission rights (FTRs) ownership on strategic behaviour is analyzed in a dynamic model for energy and spinning reserve. Most of previous models have been static and they focus only in the energy market incentives for strategic behaviour. In contrast, in this paper, intertemporal constraints, the spinning reserve (SR) market and the FTRs ownership together with conjectured functions for supply and transmission are introduced. Under such considerations, the competition among participants is modelled with more realism. The resulting equilibrium problem is modelled as a linear complementarity problem (LCP). The analysis is illustrated by a six-node network with a DC approximation.