Tools for assessment of transmission-constrained market power in electricity markets

本研究的目的是发展更好地了解在电力市场中的市场力时，有供应紧张的条件下，当传输限制约束。该方法将基本的经济学原理与对电力市场出清结果的新的敏感性分析相结合，以评估市场参与者在电力市场中加价的动机。这种方法直接处理市场力量的决定因素，避免了市场力量的临时指数。第一，市场力仍然是重组后的电力市场中的一个问题，所以理解和分析市场力是一个重要的课题。二是从基本的经济学原理出发，将其与电力市场出清分析紧密结合，建立了市场力指标。这与现有的特别方法形成强烈对比，以评估存在传输限制的市场力量。这种方法利用指数，如赫芬达尔-赫希曼指数（HHI），充其量，只有一个间接的关系，在存在的市场力量的transmission constrains.The更广泛的影响，这个项目包括整合的结果到现有的研究生班市场，是在得克萨斯大学奥斯汀分校任教。此外，了解和量化电力市场中市场力的结构性驱动因素，使市场力监测和监管机构能够更好地缓解市场力。鉴于市场力在电力市场中的普遍存在，正确识别和诊断电力市场中的市场力是非常重要的。

The objective of this research is to develop better understanding of market power in electricity markets when there are tight supply conditions and when transmission limits bind. The approach involves the combination of fundamental economics principles with a new sensitivity analysis of the results of electricity market clearing to assess the incentives for a market participant to mark-up their prices in an electricity market. This approach directly addresses the determinants of market power and avoids ad hoc indices of market power.The intellectual merit of this approach stems from two factors. The first is that market power continues to be a problematic issue in restructured electricity markets, so that understanding and analyzing market power is an important topic. The second is that the approach begins with basic economics principles and combines them rigorously with analysis of the clearing of electricity markets to establish an index of market power. This strongly contrasts with existing ad hoc approaches to assessment of market power in the presence of transmission constraints. Such approaches utilize indices, such as the Herfindahl-Hirschman Index (HHI) that, at best, have only an indirect relationship with market power in the presence of transmission constraints.The broader impact of this project includes the integration of results into an existing graduate class on market that is taught at The University of Texas at Austin. Moreover, understanding and quantifying the structural drivers of market power in electricity markets enables a better approach to mitigating market power by market power monitors and regulatory agencies. Given that market power remains pervasive in electricity markets, it is extremely important to correctly identify and diagnose market power in electricity markets.