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

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 behavior. In contrast, in this paper, a multiperiod market for energy and spinning reserve (SR) is considered. By including such factors, the competition among participants is modeled with more realism. Competition in the energy market is modeled 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 modeled 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.