Recent changes in the German energy policy initiated a deregulation process from a monopolistic to a competitive market, fundamentally changing the market structure, transaction relationships and trading processes. While the mutual exchange of electric energy has been a business activity between vertically integrated utilities for a long time, wholesale electricity trading in an open market onl...

We address the valuation of an operating wind farm and the …nite-lived option to invest in it under di¤erent reward/support schemes. They range from a feed-in tari¤ to a premium on top of electricity market price, to a transitory subsidy. Availability of futures contracts on electricity with ever longer maturities allows to undertake market-based valuations. The model considers up to three sour...

The purpose of this paper is to analyze the real–time trading of electricity. We address a model for an auction–like trading which captures key features of the real–world electricity markets. Our main result establishes that, under certain conditions, the expected total payment to the electricity producers is independent on particular auction type. This result is analogous to the revenue equiva...

In many European countries, natural gas-fired power plants are considered a possibility to quickly compensate the expected shortfall in electric energy supply. Increasing gasfired generation capacity would also increase the couplings and interactions between gas and electricity systems. So far, gas power plants participate in two different markets gas and electricity. Coupling these markets by ...

The thesis presents two dynamic models of generation capacity investment in deregulated electricity markets. Both models assume that electricity producers determine their investment in order to maximize their profits. The industry outcome is modeled as an equilibrium of such profit maximizing players. The first model is a numerical game model set in discrete time with a finite horizon. It assum...

The issue of market concentration in electricity markets and resulting possible anti-competitive behavior of producers is a much discussed topic in many countries. We investigate the day-ahead market for electricity at the EPEX, the largest central European market for electricity. To analyze whether generating companies use their market power to influence prices, we use a conjectural variations...

A novel market mechanism is proposed to charge the uncertainty and credit the generation reserve in the Day-ahead market within a Robust Security-Constrained Unit Commitment (RSCUC) optimization framework. The increasing penetration of renewable energy in recent years has led to more uncertainties in power systems. These uncertainties have to be accommodated by flexible resources (i.e. upward a...

this paper represents a complete survey on generation companies’ (gencos’) optimal bidding strategy problem in restructured power markets. in this regard after an introduction to competitive electricity markets, concept of optimal bidding strategy is presented. considering large amount of works accomplished in this area a novel classification is implemented in order to categorize the existing d...

This paper presents a decision support methodology for electricity market players’ bilateral contract negotiations. The proposed model is based on the application of game theory, using artificial intelligence to enhance decision support method’s adaptive features. This model is integrated in AiD-EM (Adaptive Decision Support for Electricity Markets Negotiations), a multi-agent system that provi...

nowadays, congestion management is one of the major tasks accomplished by system operators to warrant the operation of transmission system within operating limits. this has resulted in unanticipated congestion interfaces in regional transmission systems. the system is, however, unable to evolve at a rate which is required to meet the quickly changing demand of competitive markets. to make the m...