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 -