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A Unifying Approach to Assessing Market Power in Deregulated Electricity Markets

Wu, Chenye and Bose, Subhonmesh and Wierman, Adam and Mohesenian-Rad, Hamed (2013) A Unifying Approach to Assessing Market Power in Deregulated Electricity Markets. In: 2013 IEEE Power & Energy Society General Meeting, July 21-25, 2013, Vancouver, BC, Canada.

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A competitive deregulated electricity market with increasingly active market players is foreseen to be the future of the electricity industry. In such settings, market power assessment is a primary concern. In this paper, we propose a novel functional approach for measuring long term market power that unifies a variety of popular market power indices. Specifically, the new measure, termed transmission constrained network flow (TCNF), unifies three large classes of market power measures: residual supply based, network flow based, and minimal generation based. Further, TCNF provides valuable information about market power not captured by prior indices. We derive its analytic properties and test its efficacy on IEEE test systems.

Item Type:Conference or Workshop Item (Paper)
Bose, Subhonmesh0000-0002-3445-4479
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Group:Resnick Sustainability Institute
Funding AgencyGrant Number
NSFNetSE CNS 0911041
NSFECCS 1253516
Southern California EdisonUNSPECIFIED
National Science Council of TaiwanUNSPECIFIED
R.O.C.NSC 101-3113-P-008-001
Resnick InstituteUNSPECIFIED
Okawa FoundationUNSPECIFIED
National Basie Research Program of China2011CBA00300
National Basie Research Program of China2011CBA00301
Subject Keywords:Market power, electricity markets
Record Number:CaltechAUTHORS:20130930-122810401
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Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:41558
Deposited On:30 Sep 2013 19:36
Last Modified:19 Mar 2021 00:04

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