Loading...

Estimation of marginal cost function using bid price and quantity to power market

Mardani, H ; Sharif University of Technology | 2008

409 Viewed
  1. Type of Document: Article
  2. DOI: 10.1109/EPC.2008.4763315
  3. Publisher: 2008
  4. Abstract:
  5. A major challenge for designers of competitive electricity markets is to devise market rules that limit the capability of electricity producers to exercise market power. Market power is the ability of a firm owning generation assets to raise the market price by its bidding behavior and to profit from this price increase. In addition, an important plan of market monitoring units in long term and competition policy framework is to persuade the participants to bid prices near to their marginal costs. Therefore, estimation of marginal cost function is important in way that Regulatory use it to increase competition in electricity markets. Bid price of the power plant to the power market contains some important information that can lead to more exact estimation of their marginal cost. In this paper the marginal cost of a typical power plant is estimated using optimal bidding behavior model in a competitive electricity market and Iran power market data. © 2008 IEEE
  6. Keywords:
  7. Bertrand oligopoly model ; Competition in electricity markets ; Competition policies ; Competitive electricity markets ; Electricity producers ; Generation assets ; Long terms ; Marginal cost function ; Market monitoring ; Market power ; Market prices ; Power markets ; Price increase ; Competition ; Cost functions ; Costs ; Electric power supplies to apparatus ; Electric utilities ; Estimation ; Optimization ; Marketing
  8. Source: 2008 IEEE Electrical Power and Energy Conference - Energy Innovation, Vancouver, BC, 6 October 2008 through 7 October 2008 ; 2008 ; 9781424428953 (ISBN)
  9. URL: https://ieeexplore.ieee.org/document/4763315