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Modeling of an Electricity Market Including Operating Reserve and Analysis of Supplier's Bidding Strategies  

Shin Jae-Hong (Dept. of Electrical Engineering, Dankook University)
Lee Kwang-Ho (Dept. of Electrical Engineering, Dankook University)
Publication Information
KIEE International Transactions on Power Engineering / v.5A, no.4, 2005 , pp. 396-402 More about this Journal
Abstract
In an electricity market with imperfect competition, participants devise bidding plans and transaction strategies to maximize their own profits. The market price and the quantity are concerned with the operation reserve as well as the bidding system and demand curves in an electricity market. This paper presents a market model combined by an energy market and an operating reserve market. The competition of the generation producers in the combined market is formulated as a gaming of selecting bid parameters such as intersections and slopes in bid functions. The Nash Equilibrium (NE) is analyzed by using bi-level optimization; maximization of Social Welfare (SW) and maximization of the producers' profits.
Keywords
Bidding Strategy; Electricity Market; Game Theory; Market Operator; Nash Equilibrium; Operating Reserve; Social Welfare; Supply Function Model;
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