An equilibrium‐based model to investigate market performance of power‐based electricity market

The conventional model of the day-ahead electricity markets employs an energy-based approach to manage competition among players. Under this format, it is assumed that everything (including demand and output power generating units) constant during each hour. This assumption greatly simplifies market, widely incorporated over globe. However, leads mismatches in real-time operation. With increase share intermittent sources, such get higher amplitude become more threatening for market performance system security. Power-based modelling (PbM), which has been introduced as a remedy eliminate operation, scrutinized. previous comparisons between PbM generally deploy rigid based on existence perfect competition. They assume all generation companies offer their maximum capacity marginal cost into market. Moreover, they single-side auction only supply side actively involved In order develop studies PbM, equilibrium environment players’ interactions within competitive employed. Employment brings benefits double-side can simulate strategic behaviour players both sides partially provides empirical insight how changing structure affects shifts provided some unreported attributes PbM. study real-world network Gilan province northern Iran.