Nonconvex Equilibrium Models for Energy Markets: Exploiting Price Information to Determine the Existence of an Equilibrium

Motivated by examples from the energy sector, we consider market equilibrium problems (MEPs) involving players with nonconvex strategy spaces or objective functions, where the latter are assumed to be linear in market prices. We propose an algorithm that determines if an equilibrium of such an MEP exists and that computes an equilibrium in case of … Read more

Gamma-Robust Electricity Market Equilibrium Models with Transmission and Generation Investments

We consider uncertain robust electricity market equilibrium problems including transmission and generation investments. Electricity market equilibrium modeling has a long tradition but is, in most of the cases, applied in a deterministic setting in which all data of the model are known. Whereas there exist some literature on stochastic equilibrium problems, the field of robust … Read more

Strictly and Γ-Robust Counterparts of Electricity Market Models: Perfect Competition and Nash-Cournot Equilibria

This paper mainly studies two topics: linear complementarity problems for modeling electricity market equilibria and optimization under uncertainty. We consider both perfectly competitive and Nash–Cournot models of electricity markets and study their robustifications using strict robustness and the Γ-approach. For three out of the four combinations of economic competition and robustification, we derive algorithmically tractable … Read more

Dynamic Risked Equilibrium

We revisit the correspondence of competitive partial equilibrium with a social optimum in markets where risk-averse agents solve multistage stochastic optimization problems formulated in scenario trees. The agents trade a commodity that is produced from an uncertain supply of resources which can be stored. The agents can also trade risk using Arrow-Debreu securities. In this … Read more

Uniqueness of Market Equilibria on Networks with Transport Costs

We study the existence and uniqueness of equilibria for perfectly competitive markets in capacitated transport networks. The model under consideration is rather general so that it captures basic aspects of related models in, e.g., gas or electricity networks. We formulate the market equilibrium model as a mixed complementarity problem and show the equivalence to a … Read more

Nonconvex Equilibrium Models for Gas Market Analysis: Failure of Standard Techniques and Alternative Modeling Approaches

This paper provides a first approach to assess gas market interaction on a network with nonconvex flow models. In the simplest possible setup that adequately reflects gas transport and market interaction, we elaborate on the relation of the solution of a simultaneous competitive gas market game, its corresponding mixed nonlinear complementarity problem (MNCP), and a … Read more

Uniqueness and Multiplicity of Market Equilibria on DC Power Flow Networks

We consider uniqueness and multiplicity of market equilibria in a short-run setup where traded quantities of electricity are transported through a capacitated network in which power flows have to satisfy the classical lossless DC approximation. The firms face fluctuating demand and decide on their production, which is constrained by given capacities. Today, uniqueness of such … Read more