Title :
An empirical method of dynamic oligopoly behavior analysis in electricity markets
Author :
Liu, J.D. ; Lie, T.T. ; Lo, K.L.
Author_Institution :
Sch. of Electr. & Electron. Eng., Nanyang Technol. Univ., Singapore
fDate :
5/1/2006 12:00:00 AM
Abstract :
Evidence of market power existing in the electricity markets has been empirically revealed, but the understanding of the market structure and generation companies´ (GENCOs´) strategic behaviors underlying the market power is far from satisfactory. This paper presents a theory and method for estimating the conjectural variations of GENCOs. Based on these estimates of conjectural variations in an actual electricity market, an empirical methodology is also proposed to analyze the dynamic oligopoly behaviors underlying market power. This is not only useful for system regulators to analyze the market structure but also to recognize and control the market power accordingly. The Australia National Electricity Market is used as the simulation case to test the proposed method.
Keywords :
oligopoly; power markets; Australia National Electricity Market; conjectural variations estimation; dynamic oligopoly behavior analysis; electricity markets; generation companies; market structure; power market; Australia; Consumer electronics; Costs; Electricity supply industry; Electricity supply industry deregulation; Investments; Oligopoly; Power generation; Power markets; Regulators; Conjectural variation; electricity market; market power; oligopoly;
Journal_Title :
Power Systems, IEEE Transactions on
DOI :
10.1109/TPWRS.2006.873054