This paper introduced the application of game theory in electricity power market. Moreover, the electricity pool model and the merit order dispatch method was introduced. In pool mode, participants are trying to maximize their benefit via competition with each other. Hence the market can be regarded as a non-cooperative game, especially, the electrical supply competition. Players (generators) c...

The paper concentrates on four aspects of mitigating market power in European electricity networks: capacity divestiture, entry, promoting interconnection, and the capacity to regulate competition in generation, drawing on lessons from Britain, California and the Continent. Each of these actions can improve the intensity of competition in electricity wholesale markets, but attractive strategies...

This paper is about electricity market operation when looking from the wind power producers’ point of view. The focus in on market time horizons: how many hours there is between the closing and delivering the bids. The case is for the Nordic countries, the Nordpool electricity market and the Danish wind power production. Real data from year 2001 was used to study the benefits of a more flexible...

due to uncertain nature of wind and photovoltaic power units, the participation of this units in electricity markets is subjected to significant deviation penalties. this issue leads to despondency or even admission of these units in the competitive environment. with regard to this fact that the low deviations are available when predictions are performed in a short-term horizon and also distrib...

Organized trading for electricity includes both the pool and the futures market. Pool prices are volatile while the prices of the futures-market products are comparatively more stable. Thus, futures-market products constitute hedging instruments to reduce the risk suffered by any market agent. Electricity market agents engage in both pool and futures market transactions seeking to maximize thei...

We develop a reinforcement-learning algorithm to model investment in electricity markets, by extending the n-armed bandit algorithm, and prove its equilibrium properties. We show that there is a stationary state of the investment game in which no additional investment or retirement of plants takes place. We model a spot electricity market together with investment decisions. Our experiments sugg...

Electricity spot prices are highly volatile under optimal generation capacity scenarios due to factors such as nonstorability of electricity, peak demand at certain periods, generator outages, fuel uncertainty for renewable energy generators, huge investments and time needed for generation capacity expansion etc. As a result market participants are exposed to price and volume risk, which has le...

competitive; a market environment is replacing the traditional centralized-operation approach. This transformation is often called the deregulation of the electricity market. Many electricity companies have split into several companies that specialize in energy generation, transmission, or distribution. These companies need to adopt new management approaches to survive in this market. The indus...