Auction basics for wholesale power markets: Objectives and pricing rules

  title={Auction basics for wholesale power markets: Objectives and pricing rules},
  author={Leigh Tesfatsion},
  journal={2009 IEEE Power & Energy Society General Meeting},
  • Leigh Tesfatsion
  • Published 2009 in 2009 IEEE Power & Energy Society General Meeting
Power systems have distinctive features that greatly complicate the development of auction designs. This study reviews the theory and practice of auction design as it relates specifically to U.S. restructured wholesale power markets, i.e., centrally-administered wholesale power markets with congestion managed by locational marginal prices. Basic auction concepts such as reservation value, net seller surplus, net buyer surplus, competitive market clearing, market efficiency, market pricing rules… CONTINUE READING
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