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http://dx.doi.org/10.5370/KIEE.2017.66.12.1705

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

Lee, Kwang-Ho (Dept. of Electrical and Electronic Engineering, Dankook University)
Publication Information
The Transactions of The Korean Institute of Electrical Engineers / v.66, no.12, 2017 , pp. 1705-1711 More about this Journal
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
Demand response; Market power; Transmission congestion; Electricity market; Cournot; Nash equilibrium;
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Times Cited By KSCI : 1  (Citation Analysis)
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