The nodal market power index (NMP Index) for modelling and visualising market power

M. R. Hesamzadeh, D. R. Biggar, N. Hosseinzadeh, P. J. Wolfs

Research output: Chapter in Book/Report/Conference proceedingConference contribution

4 Citations (Scopus)

Abstract

This paper deals with a systematic way for modelling and visualising market power in liberalised electricity markets. The paper first introduces a new index termed the "Nodal Market Power" index, the NMP index. The NMP index is calculated based on the concept of "social welfare" in economics and the game theory in applied mathematics. The oligopoly electricity market is modelled through a non-cooperative game and the solution concept of the Nash equilibrium. The solution concept of Nash equilibrium is reformulated as an optimisation problem. To tackle the multiple Nash equilibria problem, the worst Nash equilibrium in terms of the social cost to the society is selected. Then after, the NMP index is calculated for each node of power system. A colour contour map is used for visualising the market power using the NMP index.

Original languageEnglish
Title of host publicationIEEE PES General Meeting, PES 2010
DOIs
Publication statusPublished - 2010
EventIEEE PES General Meeting, PES 2010 - Minneapolis, MN, United States
Duration: Jul 25 2010Jul 29 2010

Other

OtherIEEE PES General Meeting, PES 2010
CountryUnited States
CityMinneapolis, MN
Period7/25/107/29/10

Fingerprint

Game theory
Color
Economics
Costs
Power markets

Keywords

  • Market power
  • Nodal market power index
  • Stackelberg-Worst nash equilibrium

ASJC Scopus subject areas

  • Energy Engineering and Power Technology

Cite this

Hesamzadeh, M. R., Biggar, D. R., Hosseinzadeh, N., & Wolfs, P. J. (2010). The nodal market power index (NMP Index) for modelling and visualising market power. In IEEE PES General Meeting, PES 2010 [5590137] https://doi.org/10.1109/PES.2010.5590137

The nodal market power index (NMP Index) for modelling and visualising market power. / Hesamzadeh, M. R.; Biggar, D. R.; Hosseinzadeh, N.; Wolfs, P. J.

IEEE PES General Meeting, PES 2010. 2010. 5590137.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Hesamzadeh, MR, Biggar, DR, Hosseinzadeh, N & Wolfs, PJ 2010, The nodal market power index (NMP Index) for modelling and visualising market power. in IEEE PES General Meeting, PES 2010., 5590137, IEEE PES General Meeting, PES 2010, Minneapolis, MN, United States, 7/25/10. https://doi.org/10.1109/PES.2010.5590137
Hesamzadeh, M. R. ; Biggar, D. R. ; Hosseinzadeh, N. ; Wolfs, P. J. / The nodal market power index (NMP Index) for modelling and visualising market power. IEEE PES General Meeting, PES 2010. 2010.
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