The incentive power market may lead to a high information cost if it is not informationally efficient. The paper analyzes the characteristic of the generation side power market mechanism model based on the designing economic mechanisms theory by the three GENCOs (Generation Companies) case. The result of analysis is that the mechanism model has four main features: the informationally efficient ...

This paper proposes an index for nodal market power detection in power market under locational marginal pricing (LMP). This index is an ex-ante technique to detect the market power. More precisely, this criterion detects the potential of exercising market power regardless of detecting the actual market power. Also it is obvious that pricing and market clearing method affect the potential of exe...

In this paper capacity withholding in an oligopolistic electricity market that all Generation Companies (GenCos) bid in a Cournot model is analyzed and the capacity withheld index, the capacity distortion index and the price distortion index are obtained and formulated. Then a new index, Distortion-Withheld Index (DWI), is proposed in order to measure the potential ability of market for capacit...

We study the interaction of long-term contracting and spot market transactions between Multi-Gencos and MultiDiscos for electric power. Gencos and Discos may either contract for delivery in advance or they may sell/buy some or all of their output/input in a spot market. Contract pricing involves both a reservation fee per unit of capacity and an execution fee per unit of output if capacity is c...

Unlike perfect competitive markets, in oligopoly electricity markets due to strategic producers and transmission constraints GenCos may increase their own profit through strategic biddings. This paper investigates the problem of developing optimal bidding strategies of GenCos considering participants’ market power and transmission constraints. The problem is modeled as a bi-level optimizati...

a r t i c l e i n f o This paper examines total factor productivity (TFP) growth, technical change and economies of scale measure of Korean fossil-fuel power generation companies (GENCOs) between 2001 and 2012. For the empirical investigation , we estimated the cost function along with specification tests in order to find the most appropriate empirical model. Empirical results show TFP deterior...

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...

in this paper, the concept of conjectural variation (cv) is used to specify optimal generation decision for generation companies (gencos). the conjecture of genco is defined as its belief or expectation about the reaction of rivals to change of its output. using cv method, each genco has to learn and estimate strategic behaviors of other competitors from available historical market operation da...

Abstract: In this paper, a two-dimensional Cournot model is proposed to study generation companies’ (GENCO’s) strategic quantity-setting behaviors in the newly established Yunnan’s electricity market. A hybrid pricing mechanism is introduced to Yunnan’s electricity market with the aim to stimulate electricity demand. Market equilibrium is obtained by iteratively solving each GENCO’s profit maxi...