Collaborative Research: A Unified Approach to Quantifying Market Power in the Future Grid

本研究的目的是制定一个统一的方法来衡量市场力量，连接短期和长期的分析，同时保持强大的经济基础，并纳入传输系统。方法是首先侧重于长期分析，以制定一个严格的框架，在此基础上建立短期分析工具。这种结合的方法将允许在放松管制的电力市场的潜力和利用市场力的量化。智力优点：该项目探讨了一个独特的经济和电力系统的混合物，通过建立一个统一的和全面的基础来衡量市场力。它将填补长期和短期市场力分析方面的现有零散文献中的差距，并为研究未来电网现象（如需求响应、可再生能源和分布式发电以及电力储存）对市场力的影响提供重要工具。更广泛的影响：市场监测对于维持高效的电力市场至关重要：市场势力不仅是对当今电力市场效率的主要挑战，例如，2000年的加州能源危机;随着我们向更智能的电网迈进，监测市场力量的重要性只会越来越大。因此，更好地理解如何识别和量化市场力量具有至关重要的社会意义。此外，拟议的研究将改善电力系统和经济界之间的对话。最后，所提出的研究计划具有很强的潜力，成功地使学术界的飞跃，以实践。

The objective of this research is to develop a unified approach to measuring market power that connects short-term and long-term analysis, while maintaining strong economic foundations and incorporating the transmission system. The approach is to focus first on long-term analysis to develop a rigorous framework on which to build tools for short-term analysis. This combined approach will allow quantification of both the potential for and the exploitation of market power in deregulated electricity markets.Intellectual merit: This project explores a unique mixture of economics and power systems by building a unifying and comprehensive foundation for measuring market power. It will close the gap in the existing fractured literature on long-term and short-term market power analysis and has the added benefit of providing an important tool for studying the impact on market power of future grid phenomena such as demand response, renewable and distributed generation, and electricity storage.Broader impact: Market monitoring is essential for maintaining efficient electricity markets: not only is market power a major challenge to the efficiency of today's electricity markets, e.g., the California energy crisis of 2000; the importance of monitoring market power will only grow as we move toward a smarter grid. Thus, an improved understanding of how to identify and quantify market power is of crucial societal importance. Additionally, the proposed research will improve dialogue between the power systems and economics communities. Finally, the proposed research program has a strong potential to successfully make the leap from academia to practice.