A unifying approach to assessing market power in deregulated electricity markets

Chenye Wu; Subhonmesh Bose; Adam Wierman; Mohesenian Rad Hamed

doi:10.1109/PESMG.2013.6672907

A unifying approach to assessing market power in deregulated electricity markets

Chenye Wu, Subhonmesh Bose, Adam Wierman, Mohesenian Rad Hamed

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Abstract

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.

Original language	English (US)
Title of host publication	2013 IEEE Power and Energy Society General Meeting, PES 2013
DOIs	https://doi.org/10.1109/PESMG.2013.6672907
State	Published - 2013
Externally published	Yes
Event	2013 IEEE Power and Energy Society General Meeting, PES 2013 - Vancouver, BC, Canada Duration: Jul 21 2013 → Jul 25 2013

Publication series

Name	IEEE Power and Energy Society General Meeting
ISSN (Print)	1944-9925
ISSN (Electronic)	1944-9933

Other

Other	2013 IEEE Power and Energy Society General Meeting, PES 2013
Country/Territory	Canada
City	Vancouver, BC
Period	7/21/13 → 7/25/13

Keywords

Market power
electricity markets

ASJC Scopus subject areas

Energy Engineering and Power Technology
Nuclear Energy and Engineering
Renewable Energy, Sustainability and the Environment
Electrical and Electronic Engineering

Online availability

10.1109/PESMG.2013.6672907

Library availability

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Cite this

Wu, C, Bose, S, Wierman, A & Hamed, MR 2013, A unifying approach to assessing market power in deregulated electricity markets. in 2013 IEEE Power and Energy Society General Meeting, PES 2013., 6672907, IEEE Power and Energy Society General Meeting, 2013 IEEE Power and Energy Society General Meeting, PES 2013, Vancouver, BC, Canada, 7/21/13. https://doi.org/10.1109/PESMG.2013.6672907

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abstract = "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.",

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doi = "10.1109/PESMG.2013.6672907",

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N2 - 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.

AB - 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.

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KW - electricity markets

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T3 - IEEE Power and Energy Society General Meeting

BT - 2013 IEEE Power and Energy Society General Meeting, PES 2013

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ER -

A unifying approach to assessing market power in deregulated electricity markets

Abstract

Publication series

Other

Keywords

ASJC Scopus subject areas

Online availability

Library availability

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