The impact of transmission network on the market strategies

In this paper,, the impact of transmission network on market strategies is investigated. Three market strategies, which include dynamic shadow pricing, Nash-Cournot, dynamic shadow pricing together with Nash-Cournot, are investigated. Perfect competition is also included in the simulations and is served as a comparison model. I use a simplified three-bus network to illustrate how market strategies are influenced by the network constraints. In this paper, the market participants refer to the independent power producers (IPPs). Three market strategies plus perfect competition and three different load positions are included in the simulations. The results show that IPPs will change market strategies according to the change of transmission limits. Also, with different load position, IPPs will have intentions to adopt different strategies to maximize their profits. The results prove that IPPs could obtain significant profits through their strategic behaviors