Campus Units

Electrical and Computer Engineering, Economics

Document Type

Conference Proceeding

Conference

2009 IEEE Power Systems Conference and Exposition

Publication Version

Submitted Manuscript

Link to Published Version

http://dx.doi.org/10.1109/PSCE.2009.4839993

Publication Date

2009

Journal or Book Title

Proceedings of the Power Systems Conference & Exposition

DOI

10.1109/PSCE.2009.4839993

Conference Title

2009 IEEE Power Systems Conference and Exposition

Conference Date

March 15-18, 2009

City

Seattle, WA

Abstract

This study uses a dynamic 5-bus test case implemented via the AMES Wholesale Power Market Test Bed to investigate strategic capacity withholding by generation companies (GenCos) in restructured wholesale power markets under systematically varied demand conditions. The strategic behaviors of the GenCos are simulated by means of a stochastic reinforcement learning algorithm motivated by human-subject laboratory experiments. The learning GenCos attempt to improve their earnings over time by strategic selection of their reported supply offers. This strategic selection can involve both physical capacity withholding (reporting of lower-than-true maximum operating capacity) and economic capacity withholding (reporting of higher-than-true marginal costs). We explore the ability of demand conditions to mitigate incentives for capacity withholding by letting demand bids vary from 100% fixed demand to 100% price-sensitive demand.

Comments

© 2009 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works. DOI: 10.1109/PSCE.2009.4839993

Copyright Owner

IEEE

Language

en

File Format

application/pdf

Published Version

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Article Location

 
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