6533b82dfe1ef96bd129147d

RESEARCH PRODUCT

An ACE Wholesale Electricity Market Framework with Bilateral Trading

Davide Provenzano

subject

MicroeconomicsMarket structureSpot contractSettore SECS-S/06 -Metodi Mat. dell'Economia e d. Scienze Attuariali e Finanz.Order (exchange)Electricity marketLoad duration curveBusinessMarket powerBiddingWholesale electricity market Bilateral trading Day-ahead market Agent-based simulation modelDatabase transaction

description

In this paper, an agent-based simulation model for a hybrid power market structure is presented. A bilateral transaction mechanism is combined with a uniform-pricing auction settlement in order to isolate the impact of medium-term bilateral contracts on market power and spot prices in a competitive wholesale market setting. First we describe the negotiation method for bilateral trading of energy and then introduce a new approach for bidding in the DA market based on the load duration curve. We find that, despite the conventional concerns, the foreclosure effect produced by the bilateral agreement between a generation and a retail business will not necessarily lead to higher prices, and will be manifested only according to the specific market characteristics.

yearjournalcountryeditionlanguage
2011-07-01
https://doi.org/10.1007/978-3-642-21108-9_15