The Transactions of The Korean Institute of Electrical Engineers (전기학회논문지)

The Korean Institute of Electrical Engineers (대한전기학회)
권호 표지
DOI QR코드

DOI QR Code

Demand Response Effect on Market Power with Transmission Congestion in Electricity Market

전략적 수요반응이 송전선 혼잡의 시장지배력에 미치는 영향

  • Lee, Kwang-Ho (Dept. of Electrical and Electronic Engineering, Dankook University)
  • Received : 2017.06.19
  • Accepted : 2017.11.23
  • Published : 2017.12.01
Download PDF
⟨ Previous Next ⟩

Abstract

This paper analyzes the impact of DRA (Demand Response Aggregator) on market power when competing with power generation companies (Gencos) in the electricity market. If congestion occurs in the transmission line, the strategic choice of the power generation company increases exercise of market power. DRA's strategic reduction of power load impacts the strategy of Gencos, which in turn affects the outcome of the load reduction. As the strategy of Gencos changes according to the location of the congested transmission line, the impact on the market depends on the relative location of the congested line and the DRA.

Keywords

References

  1. P.Wang, Y.Xiao, Y.Ding, "Nodal Market Power Assessment in Electricity Markets," IEEE Trans. Power Syst., Vol. 19, No. 3, pp. 1373-1379, August 2004. https://doi.org/10.1109/TPWRS.2004.831695
  2. Y.Sheffrin, J.Chen, B.F.Hobbs, "Watching Watts to Prevent Abuse of Power," IEEE Power & Energy Magazine, pp. 58-65, July/August 2004.
  3. R. Aazami, K. Aflali, M. R. Haghifam, "A Demand Response Based Solution for LMP Management in Power Market," Electrical Power and Energy Systems, Vol. 33, pp. 1125- 1132, Feb. 2011. https://doi.org/10.1016/j.ijepes.2010.12.018
  4. E. Nekouei, T. Alpcan, and D. Chattopadhyay, "Game- Theoretic Frameworks for Demand Response in Electricity Markets," IEEE Trans. on Smart Grid, vol. 6, no. 2, March 2015.
  5. S.Bose, C.Wu, Y.Xu, A.Wierman, H.Mohsenian-Rad, "A Unifying Market Power Measure for Deregulated Transmission-Constrained Electricity Markets," IEEE Trans. Power Syst., Vol. 30, No. 5, pp. 2338-2348, Sep. 2015. https://doi.org/10.1109/TPWRS.2014.2360216
  6. L. Xu and R. Baldick, "Transmission-constrained residual demand derivative in electricity markets," IEEE Trans. Power Syst., vol. 22, no. 4, pp. 1563-1573, Nov. 2007. https://doi.org/10.1109/TPWRS.2007.907511
  7. Y. Y. Lee, R. Baldick, and J. Hur, "Firm-based measurements of market power in transmission-constrained electricity markets," IEEE Trans. Power Syst., vol. 26, no. 4, pp. 1962-1970, Nov. 2011. https://doi.org/10.1109/TPWRS.2011.2157179
  8. R. Aazami, K. Aflali, M. R. Haghifam, "A Demand Response Based Solution for LMP Management in Power Market," Electrical Power and Energy Systems, Vol. 33, pp. 1125- 1132, Feb. 2011.
  9. D. Yang and Y. Chen, "Demand response and market performance in power economics," IEEE Power and Energy Society General Meeting, pp. 1-6, 2009.
  10. D. T. Nguyen, M. Negnevitsky, M. Groot, "Pool- Based Demand Response Exchange-Concept and Modeling," IEEE Trans. Power Syst., Vol. 26, No. 3, pp. 1677-1684, August 2011. https://doi.org/10.1109/TPWRS.2010.2095890
  11. K. H. Lee, "Solving Mixed Strategy Nash-Cournot Equilibria under Generation and Transmission Constraints in Electricity Market," Journal of Electrical Engineering Technology, Vol. 8, No. 4, pp. 675-685, 2013. https://doi.org/10.5370/JEET.2013.8.4.675
  12. K. H. Lee, "Solving Mixed Strategy Equilibria of Multi-Player Games with a Transmission Congestion," Transaction of KIEE, Vol. 55A, No. 11, pp. 492-497, Nov. 2006.
  13. Roy Gardner, Games for Business and Economics, John Wiley& Sons, Inc. 2003.