Separation and volatility of locational marginal prices in restructured wholesale power markets

Date
2010-03-02
Authors
Li, Hongyan
Sun, Junjie
Tesfatsion, Leigh
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Altmetrics
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Research Projects
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Economics
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Abstract

This study uses an agent-based test bed ("AMES") to investigate separation and volatility of locational marginal prices (LMPs) in an ISO-managed restructured wholesale power market operating over an AC transmission grid. Particular attention is focused on the dynamic and cross-sectional response of LMPs to systematic changes in demand-bid price sensitivities and supply-offer price cap levels under varied learning specifications for the generation companies. Also explored is the extent to which the supply offers of the marginal (price-determining) generation companies induce correlations among neighboring LMPs. Related work can be accessed at: http://www.econ.iastate.edu/tesfatsi/AMESMarketHome.htm

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restructured wholesale power markets, multi-agent learning, demand-bid price sensitivity, AMES Wholesale Power Market Test Bed, agent-based modeling, locational marginal prices (LMPs), LMP separation, LMP volatility, supply-offer price caps
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