Title :
Market power analysis in the Italian electricity market using a supply function equilibrium model
Author :
Abeygunawardana, A.M.A.K. ; Bovo, C. ; Berizzi, A.
Author_Institution :
Politec. di Milano, Milan, Italy
Abstract :
Market power is one of the main concerns in the Italian electricity market. Transmission constraints and highly concentrated ownership structure in the market have been allowing firms to exercise market power and raise electricity prices above marginal cost. This paper presents a supply function equilibrium (SFE) model for analyzing the exercise of potential market power in the Italian electricity market. A coevolutionary genetic algorithm is used to calculate the oligopolistic price equilibria of the SFE model, while considering the transmission constraints in the network using a 3 area approximation of the Italian grid. Demand is assumed to be perfectly inelastic.
Keywords :
genetic algorithms; oligopoly; power grids; power markets; power system economics; Italian electricity market; coevolutionary genetic algorithm; market power analysis; oligopolistic price equilibria; supply function equilibrium model; transmission constraints; Costs; Differential equations; Electric variables measurement; Electricity supply industry; Electricity supply industry deregulation; Genetic algorithms; Oligopoly; Power markets; Power measurement; Power system modeling;
Conference_Titel :
Universities Power Engineering Conference (UPEC), 2009 Proceedings of the 44th International
Conference_Location :
Glasgow
Print_ISBN :
978-1-4244-6823-2
