Effect of network congestions between areas on single-price electricity markets

This paper presents a conjectural-variation-based equilibrium model of a single-price electricity market. The distinctive modeling feature introduced in this paper is the formalization of the equilibrium equations taking into account the effect of congestion between areas on generators´ behavior. The results show that, when there is a congestion between two areas, generators valued differently the production of each area, giving more importance to the importing area.