Electricity generation with looped transmission networks : Bidding to an ISO ∗

  title={Electricity generation with looped transmission networks : Bidding to an ISO ∗},
  author={Xinmin Hu and Daniel Ralph and Eric K Ralph and Peter Bardsley and Michael C. Ferris},
This paper uses a bilevel game to model markets for delivery of electrical power on looped transmission networks. It analyzes the effectiveness of an independent system operator (ISO) when generators (and, in some cases, retailers) with market power bid a single parameter of their linear supply (demand) functions to the ISO. The ISO, taking these bids at face value, maximizes welfare subject to transmission constraints. We find that equilibrium outcomes are sensitive to firms’ strategy spaces… CONTINUE READING
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