Dynamic LMP response under alternative price-cap and price-sensitive demand scenarios

Author

Li, Hongyan ; Sun, Junjie ; Tesfatsion, Leigh

Author_Institution

Iowa State Univ., Ames, IA

fYear

2008

fDate

20-24 July 2008

Firstpage

1

Lastpage

8

Abstract

This study investigates the complicated nonlinear effects of demand-bid price sensitivity and supply-offer price caps on locational marginal prices (LMPs) for bulk electric power when profit-seeking generators can learn over time how to strategize their supply offers. Systematic computational experiments are conducted using AMES, an open-source agent-based test bed developed by the authors. AMES models a restructured wholesale power market operating through time over an AC transmission grid subject to line constraints, generation capacity constraints, and strategic trader behaviors.

Keywords

power generation economics; power grids; power markets; pricing; AC transmission grid; AMES models; alternative price-cap; dynamic LMP response; generation capacity constraints; line constraints; locational marginal prices; price-sensitive demand scenarios; profit-seeking generators; strategic trader behaviors; AC generators; Costs; ISO; Mesh generation; Power generation; Power markets; Power systems; Pricing; Sun; Testing; AMES; MISO market protocols; Restructured wholesale power markets; agent-based test bed; capacity withholding; demand-bid price sensitivity; learning; locational marginal prices; market power; price spiking; price volatility; strategic pricing; supply-offer price caps;

fLanguage

English

Publisher

ieee

Conference_Titel

Power and Energy Society General Meeting - Conversion and Delivery of Electrical Energy in the 21st Century, 2008 IEEE

Conference_Location

Pittsburgh, PA

ISSN

1932-5517

Print_ISBN

978-1-4244-1905-0

Electronic_ISBN

1932-5517

Type

conf

DOI

10.1109/PES.2008.4596069

Filename

4596069