An oligopolistic model of an integrated market for energy and spinning reserve

Summary form only given. In this paper, a model for oligopolistic competition in electricity markets is presented. Most previous proposed models have been static and focused only on the energy market incentives for strategic behaviour. In contrast, in this paper, a multi-period market for energy and spinning reserve (SR) is considered. By including such factors, the competition among participants is modelled with more realism. Competition in the energy market is modelled by means of conjectured supply functions, while conjectured reserve-price response functions are used to consider the generators ability to alter the SR prices. The resulting equilibrium problem is modelled in terms of complementarity conditions. Based upon a complementarity model, the opportunity cost between the energy and SR markets is derived for oligopolistic markets. The proposed model is illustrated by a six-node network using a DC approximation