Transmission System Augmentation Based on the Concepts of Quantity Withheld and Monopoly Rent for Reducing Market Power
2010 (English)In: IEEE Transactions on Power Systems, ISSN 0885-8950, ISSN 0885-8950, Vol. 25, no 1, 167-180 p.Article in journal (Refereed) Published
This paper proposes two mathematical structures for considering the market power effect of transmission capacity in transmission augmentation assessment. These mathematical structures use the concepts of monopoly rent and quantity withheld in economics for market power modeling in the assessment process of transmission augmentation. The simultaneous-move and sequential-move games in applied mathematics are used to model the interactions of the transmission network service provider, generating companies, and the market management company in the proposed mathematical structures. The solution concept of Nash equilibria is reformulated as an optimization problem, and the multiple Nash equilibria is tackled through an introduced concept termed worst Nash equilibrium. A numerical solution is developed to solve the proposed mathematical structures. The numerical solution is an island parallel genetic algorithm nested in a standard genetic algorithm. The six-bus Garver's example system and the IEEE 14-bus test system are modified and studied. The results prove the strong mechanism of the developed structures for modeling the market power effect of transmission capacity in the assessment of transmission augmentation.
Place, publisher, year, edition, pages
2010. Vol. 25, no 1, 167-180 p.
Game theory, Market power, Nash equilibria, Transmission system augmentation, Applied mathematics, Assessment process, Generating companies, Island parallel genetic algorithms, Mathematical structure, Nash Equilibrium, Numerical solution, Optimization problems, Solution concepts, Standard genetic algorithm, Test systems, Transmission capacities, Transmission networks, Transmission systems, Ad hoc networks, Commerce, Competition, Electric power transmission, Numerical analysis, Telecommunication networks, Transmissions
Electrical Engineering, Electronic Engineering, Information Engineering
IdentifiersURN: urn:nbn:se:kth:diva-79303DOI: 10.1109/TPWRS.2009.2036823ISI: 000273930800019ScopusID: 2-s2.0-76649144781OAI: oai:DiVA.org:kth-79303DiVA: diva2:495345
QC 201202172012-02-082012-02-082014-04-11Bibliographically approved