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会造成严重的效率低下和价格不平等。由于一个市场中的市场力量可能会影响其他市场，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。在这项研究中，混合互补(MC)模型将被开发来考虑多个市场的战略行为。这些模型的设计将使它们能够解决具有数千台发电机和输电接口的系统。一些模型将被表述为MPEC(具有均衡约束的数学规划)，以表示在其中占主导地位的公司预测其他公司反应的博弈。MC和MPEC模型将制定具有战略互动的输电服务市场，以及发电商可以同时在多个市场行使市场支配力的情况。其他被考虑的市场将包括产能、储备和绿色电力。将解决已开发模型的小版本，以确定市场交互是否重要，以及它们同时考虑是否显著改变价格、经济效率、市场份额、发电组合或其他结果。MC模型将被分析，以确定解决方案是否存在和唯一。确定的两个最优先应用将使用来自美国或英国电力市场的发电机、需求和输电数据进行建模。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.