Supply Function Competition in Electricity Markets with Flexible, Inflexible, and Variable Generation

Dynamic Competition in Electricity Markets: Hydropower and Thermal Generation

We study dynamic duopolistic competition between hydro and thermal generators under demand uncertainty. Producers compete in quantities and each is constrained: the thermal generator by capacity and the hydro generator by water availability. Two versions of the model are analysed: an infinite-horizon game emphasizing water withholding incentives of the hydro generator and the distribution of pr...

Investment in Electricity Markets: Equilibrium Price and Supply Function

In most real options models for evaluating power plants, it is assumed that the price fluctuates stochastically such as a geometric Brownian motion. In actual electricity market, the prices are determined by supply and demand, and the supply and demand balance may cause the price spike. Especially, the supply characteristics, which depend on the type and number of power plants in electricity ma...

Generation Supply Bidding in Perfectly Competitive Electricity Markets

This paper reports on the development of a comprehensive framework for the analysis and formulation of bids in competitive electricity markets. Competing entities submit offers of power and energy to meet the next day's load. We use the England and Wales Power Pool as the basis for the development of a very general competitive power pool (CPP) framework. The framework provides the basis for sol...

Capacity Competition in Electricity Markets∗

We analyze a two-stage game where capacity constrained electricity generators first choose how much capacity they make available and then compete in a uniform price auction. We study how capacity withholding can be used strategically to enforce market power and how uniform auctions in the price game change the results of capacity constrained competition models. Our main finding is that the unif...

Competition in Retail Electricity Supply