Open AccessEx‐ante evaluation and optimal mitigation of market power in electricity markets including renewable energy resources
Author(s) -
Shafiekhah Miadreza,
Moghaddam Mohsen Parsa,
SheikhElEslami Mohammad Kazem
Publication year - 2016
Publication title -
iet generation, transmission and distribution
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.92
H-Index - 110
eISSN - 1751-8695
pISSN - 1751-8687
DOI - 10.1049/iet-gtd.2015.0981
Subject(s) - electricity market , renewable energy , electricity , order (exchange) , market power , variable renewable energy , electric power system , energy market , market analysis , environmental economics , microeconomics , industrial organization , business , computer science , economics , power (physics) , engineering , marketing , finance , physics , quantum mechanics , electrical engineering , monopoly
In this study, a new framework is proposed to evaluate the market power in electricity markets including renewable energy resources. To this end, a virtual electricity market (VEM) model is proposed based on multi‐agent systems to investigate the behaviour of market players from the regulator's viewpoint. In addition to the tacit collusive behaviour of market players, the potential of explicit collusions is also considered. Moreover, three indices are proposed for ex‐ante assessment of the market power. The proposed indices not only recognise the market power potential but also express the reasons for the market power. Furthermore, an algorithm is proposed based on the VEM to select the optimal rule, regulation and market structure, in order to maximise the market efficiency. In order to represent the effectiveness of the proposed method, several case studies are considered and the impacts of various market rules on market behaviour are simulated and discussed.