Optimal Bidding Strategies in Transmission Limited Electric Power Markets

美国和全世界的电力工业正在经历彻底的重组。这些变化需要新的分析技术，对市场参与者和监管者都是如此。本建议的目标是研究适当的分析概念。基础传输系统在所有市场结构中都起着重要作用。在一定条件下，输电拥塞甚至会细分较大的电力池，制约发电调度。我们需要工具来帮助市场参与者设计出最优的竞价策略。相反，监管机构必须警惕反竞争行为。提出了一种能够弥补经济分析与市场分析之间差距的市场求解算法。最终，这种算法将有助于分析潜在工程约束对市场的影响。一个完整的传动系统模型将嵌入到市场仿真中。出发点是使电力市场的社会福利最大化的最优潮流。研究将确定个人福利优化的最佳算法。一种有希望的方法是将问题表述为嵌套优化：个体必须在其价格和分配由池运营商决定这一事实的前提下实现福利最大化，而池运营商则试图最大化整体社会福利。该算法采用迭代法求解纳什均衡。寻找纳什均衡的算法描述了一个涉及交换代数约束的动态过程。这种关于市场行为的动态系统观点所提供的洞见，应该有助于对市场力量的系统定义。

The electricity industry in the United States and throughout the world is undergoing radical restructuring. These changes require new analysis techniques, both for market participants and for regulators. The goal of this proposal is to investigate appropriate analysis concepts.The underlying transmission system plays a significant role in all market structures. Under certain conditions, transmission congestion can subdivide even relatively large power pools, constraining the generation dispatch. Tools are needed to help market participants devise optimal bidding strategies. Conversely, regulators must be vigilant against anti-competitive acts.Investigation of a market solution algorithm that bridges the gap between and economic analysis is proposed. Ultimately, such an algorithm will facilitate analysis of the impact of underlying engineering constraints on the market. A complete model of the transmission system will be embedded in the market simulation. The starting point is an Optimal Power Flow that maximizes the social welfare of the electricity market.The research will determine the best algorithm for individual welfare optimization. One promising approach is to formulate the problem as a nested optimization: an individual must maximize welfare subject to the fact that their price and dispatch are determined by the pool operator, who is, in turn, attempting to maximize overall social welfare. This algorithm motivates an iterative approach to obtaining Nash equilibria.The algorithm for finding Nash equilibria describes a dynamic process that involves switched algebraic constraints. The insights that are provided by this dynamical systems view of market behavior should facilitate a systematic definition of market power.