We present a simulation model based on the Nash equilibrium for the analysis of the auction based day ahead electricity generation market. Starting from the empirical data distributions of the market clearing price and the energy demand registered by the supervisory authority, the model allows evaluating the market competitiveness and preventing anticompetitive actions by participants. It also represents a basis for a decision support tool for producers to define their optimal bidding strategy. With respect to other existing models, it allows considering differences in the generation capacities of producers, in the utilized energy sources, and in the zonal market. The model is tested in the Italian energy market by means of two different scenarios and by varying the number of bidders and their production capacities.

Simulation and evaluation of the auction based day ahead energy market via a Nash equilibrium model and zonal pricing

Epicoco N;
2014-01-01

Abstract

We present a simulation model based on the Nash equilibrium for the analysis of the auction based day ahead electricity generation market. Starting from the empirical data distributions of the market clearing price and the energy demand registered by the supervisory authority, the model allows evaluating the market competitiveness and preventing anticompetitive actions by participants. It also represents a basis for a decision support tool for producers to define their optimal bidding strategy. With respect to other existing models, it allows considering differences in the generation capacities of producers, in the utilized energy sources, and in the zonal market. The model is tested in the Italian energy market by means of two different scenarios and by varying the number of bidders and their production capacities.
2014
978-1-4799-5900-6
Decision support systems
Game theory auction
Computer simulation
Nash equilibria
Electricity market
Generation companies
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.12572/13138
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