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Presentation
Capacity withholding in restructured wholesale power markets: An agent-based test bed study
Proceedings of the Power Systems Conference & Exposition
  • Hongyan Li, Iowa State University
  • Leigh Tesfatsion, Iowa State University
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
1-1-2009
DOI
10.1109/PSCE.2009.4839993
Conference Title
2009 IEEE Power Systems Conference and Exposition
Conference Date
March 15-18, 2009
Geolocation
(47.6062095, -122.3320708)
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
Citation Information
Hongyan Li and Leigh Tesfatsion. "Capacity withholding in restructured wholesale power markets: An agent-based test bed study" Seattle, WAProceedings of the Power Systems Conference & Exposition (2009)
Available at: http://works.bepress.com/leigh-tesfatsion/47/