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

发电商行使市场支配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支配力会影响其他市场，从而扭曲两个市场，我们将考虑不同商品市场之间的联系，如辅助服务、能源和输电服务。 在本研究中，将开发混合互补（MC）模型来考虑多个市场中的战略行为。 这些模型将被设计成可以为具有数千个发电机和传输接口的系统求解。 一些模型将被表述为MPEC（具有均衡约束的数学规划），以表示占主导地位的公司预期其他公司反应的游戏。 MC和MPEC模型将被制定的传输服务市场的战略互动，以及在这种情况下，电力生产商可以在一个以上的市场上同时行使市场势力。 考虑的其他市场将包括容量、储备和绿色电力。 将对开发的模型的小版本进行求解，以确定市场相互作用是否重要，以及同时考虑这些因素是否会显著改变价格、经济效率、市场份额、发电组合或其他结果。将对MC模型进行分析，以确定解决方案是否存在且唯一。将使用发电机、需求、以及来自美国或英国电力市场的传输数据。 将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.