Sequential Time-Step Oligopolistic Electricity Market Competition with Forward Expectations

This paper solves the spot electricity market problem sequentially in time. By decomposing the problem in time, each time-step is solved independently using an oligopolistic market model. The time dimension is divided into discrete time- steps of one hour each. The time-steps are solved sequentially and are coordinated by the supervision of the maximum/minimum on/off time constraints. Since GENCOs tend toward repetitive decision-making, they can more easily learn from the market. Learning is introduced towards forward expectation. Numerical examples are provided.