Financial withheld-based market power within congested power system

A price increase above competitive level is the consequence of market power manifestation. It makes some suppliers gain more profits and customers must pay more to buy electricity thus this reduces the efficiency of electricity market. This manuscript presents a briefly review of some international experiences on market power condition, and discusses strategic behaviour to exercise market power. To cope with transmission congestion, this paper proposes a composite technique to assess market power by employing optimal power flow based on shift-factor methodology. An intentional market power represented by financial withheld strategy is then utilised to investigate the dynamic condition of power market.