TY - GEN
T1 - Derivation of a mathematical structure for market-based transmission augmentation in oligopoly electricity markets using multilevel programming
AU - Hesamzadeh, Mohammad R.
AU - Biggar, D.
AU - Hosseinzadeh, N.
AU - Wolfs, P. J.
PY - 2009
Y1 - 2009
N2 - In this paper, we derive and evaluate a new mathematical structure for market-based augmentation of the transmission system. The closed-form mathematical structure can capture both the efficiency benefit and competition benefit of the transmission capacity. The Nash solution concept is employed to model the price-quantity game among GenCos. The multiple Nash equilibria of the game are located through a characterisation of the problem in terms of minima of the function. The worst Nash equilibrium is used in the mechanism of transmission augmentation. The worst Nash equilibrium is defined as the one which maximises the social cost, total generation cost + total value of lost load. Thorough analysis of a simple three-node network is presented to clearly highlight the mechanism of the derived mathematical structure from different perspectives.
AB - In this paper, we derive and evaluate a new mathematical structure for market-based augmentation of the transmission system. The closed-form mathematical structure can capture both the efficiency benefit and competition benefit of the transmission capacity. The Nash solution concept is employed to model the price-quantity game among GenCos. The multiple Nash equilibria of the game are located through a characterisation of the problem in terms of minima of the function. The worst Nash equilibrium is used in the mechanism of transmission augmentation. The worst Nash equilibrium is defined as the one which maximises the social cost, total generation cost + total value of lost load. Thorough analysis of a simple three-node network is presented to clearly highlight the mechanism of the derived mathematical structure from different perspectives.
KW - Multilevel programming
KW - Oligopoly electricity market
KW - Transmission augmentation
UR - http://www.scopus.com/inward/record.url?scp=71849093582&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=71849093582&partnerID=8YFLogxK
U2 - 10.1109/PES.2009.5275636
DO - 10.1109/PES.2009.5275636
M3 - Conference contribution
AN - SCOPUS:71849093582
SN - 9781424442416
T3 - 2009 IEEE Power and Energy Society General Meeting, PES '09
BT - 2009 IEEE Power and Energy Society General Meeting, PES '09
T2 - 2009 IEEE Power and Energy Society General Meeting, PES '09
Y2 - 26 July 2009 through 30 July 2009
ER -