D. M. Heide-Jørgensen, S. Pineda, T. K. Boomsma
We propose a mixed complementarity model to investigate the interplay between the day-ahead and balancing markets and the exercise of market power in both markets. The competitive behaviour of power producers at the day-ahead and balancing stages is characterized through oligopolistic markets. While several players participate in the spot market, balancing market participation is restricted to fast ramping generators, thereby increasing their ability to exercise market power in that stage. To accommodate uncertainty related to demand level and/or power production from renewable energy sources, we formulate the complementarity model as a two-stage stochastic program. We use this model to investigate how uncertainty impacts the market equilibrium and the exercise of market player by power producers.
Keywords: Equilibrium model, electricity markets, stochastic programming, market power
Scheduled
WC2 Energy markets
June 1, 2016 12:00 PM
Sala de pinturas
