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Title: Market power analysis in the EEX electricity market : an agent-based simulation approach.

Abstract

In this paper, an agent-based modeling and simulation (ABMS) approach is used to model the German wholesale electricity market. The spot market prices in the European Energy Exchange (EEX) are studied as the wholesale market prices. Each participant in the market is modeled as an individual rationality-bounded agent whose objective is to maximize its own profit. By simulating the market clearing process, the interaction among agents is captured. The market clearing price formed by agentspsila production cost bidding is regarded as the reference marginal cost. The gap between the marginal cost and the real market price is measured as an indicator of possible market power exertion. Various bidding strategies such as physical withholding and economic withholding can be simulated to represent strategic bidding behaviors of the market participants. The preliminary simulation results show that some generation companies (GenCos) are in the position of exerting market power by strategic bidding.

Authors:
; ; ;
Publication Date:
Research Org.:
Argonne National Lab. (ANL), Argonne, IL (United States)
Sponsoring Org.:
USDOE Office of Science (SC)
OSTI Identifier:
971962
Report Number(s):
ANL/DIS/CP-60664
TRN: US201005%%5
DOE Contract Number:  
DE-AC02-06CH11357
Resource Type:
Conference
Resource Relation:
Conference: 2008 IEEE Power Engineering Society General Meeting; Jul. 20, 2008 - Jul. 24, 2008; Pittsburgh, PA
Country of Publication:
United States
Language:
ENGLISH
Subject:
24 POWER TRANSMISSION AND DISTRIBUTION; 29 ENERGY PLANNING, POLICY AND ECONOMY; FEDERAL REPUBLIC OF GERMANY; ELECTRIC POWER INDUSTRY; ECONOMICS; MARKET; PRICES; COMPUTERIZED SIMULATION; SPOT MARKET

Citation Formats

Wang, J, Botterud, A, Conzelmann, G, Koritarov, V, and Decision and Information Sciences. Market power analysis in the EEX electricity market : an agent-based simulation approach.. United States: N. p., 2008. Web. doi:10.1109/PES.2008.4596563.
Wang, J, Botterud, A, Conzelmann, G, Koritarov, V, & Decision and Information Sciences. Market power analysis in the EEX electricity market : an agent-based simulation approach.. United States. https://doi.org/10.1109/PES.2008.4596563
Wang, J, Botterud, A, Conzelmann, G, Koritarov, V, and Decision and Information Sciences. 2008. "Market power analysis in the EEX electricity market : an agent-based simulation approach.". United States. https://doi.org/10.1109/PES.2008.4596563.
@article{osti_971962,
title = {Market power analysis in the EEX electricity market : an agent-based simulation approach.},
author = {Wang, J and Botterud, A and Conzelmann, G and Koritarov, V and Decision and Information Sciences},
abstractNote = {In this paper, an agent-based modeling and simulation (ABMS) approach is used to model the German wholesale electricity market. The spot market prices in the European Energy Exchange (EEX) are studied as the wholesale market prices. Each participant in the market is modeled as an individual rationality-bounded agent whose objective is to maximize its own profit. By simulating the market clearing process, the interaction among agents is captured. The market clearing price formed by agentspsila production cost bidding is regarded as the reference marginal cost. The gap between the marginal cost and the real market price is measured as an indicator of possible market power exertion. Various bidding strategies such as physical withholding and economic withholding can be simulated to represent strategic bidding behaviors of the market participants. The preliminary simulation results show that some generation companies (GenCos) are in the position of exerting market power by strategic bidding.},
doi = {10.1109/PES.2008.4596563},
url = {https://www.osti.gov/biblio/971962}, journal = {},
number = ,
volume = ,
place = {United States},
year = {Tue Jan 01 00:00:00 EST 2008},
month = {Tue Jan 01 00:00:00 EST 2008}
}

Conference:
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