Simulating Strategic Behavior in Multiple Power Markets by Complementarity and MPEC Methods: Energy, Capacity, Ancillary Services, Green Power, and Emissions Allowance Markets

由发电机行使市场权力可能造成严重的效率低下和价格不公平。由于一个市场的市场力量可以影响其他市场，扭曲两个市场，我们将考虑不同商品市场之间的联系，如辅助服务、能源和传输服务。在本研究中，混合互补（MC）模型将开发考虑战略行为在多个市场。这些模型的设计将使它们能够解决具有数千个发电机和传输接口的系统。一些模型将被公式化为mpec（具有均衡约束的数学程序），以表示主导企业预期其他企业反应的博弈。制定具有战略互动的输电服务市场的MC和MPEC模型，以及电力生产商可以同时在多个市场上行使市场权力的情况。其他考虑的市场包括容量、储备和绿色电力。将解决已开发模型的小型版本，以确定市场相互作用是否重要，以及它们的同时考虑是否显著地改变了价格、经济效率、市场份额、发电组合或其他结果。将分析MC模型，以确定解决方案是否存在和唯一。确定的两个最高优先级应用将使用来自美国或英国电力市场的发电机、需求和传输数据进行建模。分析市场力量对市场结果的潜在影响。

The exercise of market power by electric generators could cause substantial inefficiencies and price inequities. Because market power in one market can affect other markets, distorting both, we will consider linkages among markets for different commodities, such as ancillary services, energy, and transmission services. In this research, mixed complementary (MC) models will be developed to consider strategic behavior in multiple markets. These models will be designed so that they can be solved for systems with thousands of generators and transmission interfaces. Some models will be formulated as MPECs (mathematical programs with equilibrium constraints) to represent games in which a dominant firm anticipates reactions of other firms. MC and MPEC models will be formulated of markets for transmission services with strategic interactions, and situations in which power producers can exercise market power in more than one market simultaneously. Other markets considered will include capacity, reserves, and green power. Small versions of the developed models will be solved to identify whether market interactions are important, and if their simultaneous consideration significantly alter prices, economic efficiency, market shares, generation mixes, or other outcomes.The MC models will be analyzed to determine whether solutions exist and are unique.The two highest priority applications identified will be modeled using generator, demand, and transmission data from power markets in the US or UK. The potential impact of market power upon market outcomes will be analyzed.