An agent-based simulation model for a hybrid power market structure is presented. A bilateral transaction mechanism is combined with a uniform-pricing auction settlement in order to isolate the impact of medium-term bilateral contracts on market power and spot prices in a competitive wholesale market setting. First we describe the negotiation method for bilateral trading of energy and then introduce a new approach for bidding in the DA market based on the load duration curve. We find that, despite the conventional concerns, the foreclosure ef- fect produced by the bilateral agreement between a generation and a retail business will not necessarily lead to higher prices, and will be manifested only according to the specific market characteristics.

Provenzano, D. (2011). A wholesale electricity market framework with bilateral trading. In Atti del Trentacinquesimo Convegno Nazionale A.M.A.S.E.S..

A wholesale electricity market framework with bilateral trading

PROVENZANO, Davide
2011-01-01

Abstract

An agent-based simulation model for a hybrid power market structure is presented. A bilateral transaction mechanism is combined with a uniform-pricing auction settlement in order to isolate the impact of medium-term bilateral contracts on market power and spot prices in a competitive wholesale market setting. First we describe the negotiation method for bilateral trading of energy and then introduce a new approach for bidding in the DA market based on the load duration curve. We find that, despite the conventional concerns, the foreclosure ef- fect produced by the bilateral agreement between a generation and a retail business will not necessarily lead to higher prices, and will be manifested only according to the specific market characteristics.
2011
Settore SECS-S/06 -Metodi Mat. dell'Economia e d. Scienze Attuariali e Finanz.
Provenzano, D. (2011). A wholesale electricity market framework with bilateral trading. In Atti del Trentacinquesimo Convegno Nazionale A.M.A.S.E.S..
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10447/60306
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