electricity market

Enhancements of Extended Locational Marginal Pricing – Advancing Practical Implementation

  • Yonghong Chen
  • Congcong Wang
    • Categories Applications - OR and Management Sciences Tags , , , , ,

    Price formation is critical to efficient wholesale electricity markets that support reliable operation and efficient investment. The Midcontinent Independent System Operator (MISO) developed the Extended Locational Marginal Pricing (ELMP) with the goal of more completely reflecting resource costs and generally improving price formation to better incent market participation. MISO developed ELMP based on the mathematical … Read more

    An exact solution method for binary equilibrium problems with compensation and the power market uplift problem

  • Daniel Huppmann
  • Sauleh Siddiqui
    • Categories (Mixed) Integer Linear Programming, Applications - OR and Management Sciences, Game Theory Tags , , , , , ,

    We propose a novel method to fi nd Nash equilibria in games with binary decision variables by including compensation payments and incentive-compatibility constraints from non-cooperative game theory directly into an optimization framework in lieu of using first order conditions of a linearization, or relaxation of integrality conditions. The reformulation off ers a new approach to obtain and … Read more

    Using EPECs to model bilevel games in restructured electricity markets

  • Xinmin Hu
  • Daniel Ralph
    • Categories Complementarity and Variational Inequalities, Finance and Economics Tags , , , , ,

    We study a bilevel noncooperative game-theoretic model of restructured electricity markets, with locational marginal prices. Each player in this game faces a bilevel optimization problem that we remodel as a mathematical program with equilibrium constraints, MPEC. The corresponding game is an example of an EPEC, equilibrium problem with equilibrium constraints. We establish sufficient conditions for … Read more