CaltechAUTHORS
Published September 2015 | Version public
Journal Article Metadata-only

A Unifying Market Power Measure for Deregulated Transmission-Constrained Electricity Markets

Creators

  • 1. ROR icon Cornell University
  • 2. ROR icon Carnegie Mellon University
  • 3. ROR icon California Institute of Technology
  • 4. ROR icon University of California, Riverside

Abstract

Market power assessment is a prime concern when designing a deregulated electricity market. In this paper, we propose a new functional market power measure, termed transmission constrained network flow (TCNF), that unifies three large classes of transmission constrained structural market power indices in the literature: residual supply based, network flow based, and minimal generation based. Furthermore, it is suitable for demand-response and renewable integration and hence more amenable to identifying market power in the future smart grid. The measure is defined abstractly, and allows incorporation of power flow equations in multiple ways; we investigate the current market operations using a DC approximation and further explore the possibility of including detailed AC power flow models through semidefinite relaxation, and interior-point algorithms from Matpower. Finally, we provide extensive simulations on IEEE benchmark systems and highlight the complex interaction of engineering constraints with market power assessment.

Additional Information

© 2015 IEEE. Manuscript received November 28, 2013; revised April 25, 2014 and August 01, 2014; accepted September 09, 2014. Date of publication October 23, 2014; date of current version July 17, 2015. This work was supported in part by NSF through EPAS 1307794, ECCS 1307756, NetSE CNS 0911041, ARPA-E through GENI DE-AR0000226, Southern California Edison, the National Science Council of Taiwan through NSC 103- 3113-P-008-001, the Los Alamos National Lab (DoE), and Caltech's Resnick Institute. Paper no. TPWRS-01531- 2013. The authors would like to thank Dr. N. Fromer and Mr. P. DeMartini from Resnick Institute at Caltech for their helpful comments. The authors also would like to thank Prof. A. Conejo (Editor-in-Chief) and the anonymous reviewers for their inputs.

Additional details

Identifiers

Eprint ID
59808
Resolver ID
CaltechAUTHORS:20150821-103411487

Funding

NSF
EPAS 1307794
NSF
ECCS 1307756
NetSE
CNS 0911041
ARPA-E
GENI DE-AR0000226
Southern California Edison
National Science Council (Taipei)
NSC 103-3113-P-008-001
Los Alamos National Laboratory
Resnick Sustainability Institute

Dates

Created
2015-08-21
Created from EPrint's datestamp field
Updated
2021-11-10
Created from EPrint's last_modified field

Caltech Custom Metadata

Caltech groups
Resnick Sustainability Institute