Model-Based Comparisons of Pool and Bilateral Markets for Electricity

Bower, John; Bunn, Derek W.

doi:10.5547/issn0195-6574-ej-vol21-no3-1

Cited by 188 publications

(84 citation statements)

References 15 publications

(11 reference statements)

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“…(Visudhiphan and Ilić, 1999); (Day and Bunn, 2001) Inelastic electricity demand -e.g. (Bower and Bunn, 2000); (Bagnall, 2000a) No Grid contraints -e.g. (Bower and Bunn, 2000); (Scheidt, 2002);…”

Section: Discussionmentioning

confidence: 99%

See 1 more Smart Citation

Agent-based Simulation of Electricity Markets -A Literature Review-

Sensfuß

Ragwitz

Genoese

et al. 2007

Energy Studies Review

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractLiberalisation, climate policy and promotion of renewable energy are challenges to players of the electricity sector in many countries. Policy makers have to consider issues like market power, bounded rationality of players and the appearance of fluctuating energy sources in order to provide adequate legislation. Furthermore the interactions between markets and environmental policy instruments become an issue of increasing importance. A promising approach for the scientific analysis of these developments is the field of agent-based simulation. The goal of this article is to provide an overview of the current work applying this methodology to the analysis of electricity markets.

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Section: Discussionmentioning

confidence: 99%

“…Bower and Bunn present an agent-based simulation of the England and Wales electricity market in the year 2000 (Bower and Bunn, 2000). The simulation is designed to compare different market mechanisms.…”

Section: Analysis Of the Market Power Of Utilities: Evolution To Multmentioning

confidence: 99%

Agent-based Simulation of Electricity Markets -A Literature Review-

Sensfuß

Ragwitz

Genoese

et al. 2007

Energy Studies Review

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“…These bids are then cleared by the Independent System Operator (ISO). However the price and individual profits are not only dependent on their individual bids but also that of their competitors and the prices are not known until the market clearing is performed by the ISO [1], [15], [17]. This results in a NCEPEC and NDEMO can be applied to such "pool based bidding" games.…”

Section: Examples From the Electricity Generation Industrymentioning

confidence: 99%

An evolutionary algorithm based on Nash Dominance for Equilibrium Problems with Equilibrium Constraints

Koh

2012

Applied Soft Computing

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This paper introduces an evolutionary algorithm for the solution of a class of hierarchical ("leader-follower") games known as Equilibrium Problems with Equilibrium Constraints (EPECs). In one manifestation of such games, players at the upper level who assume the role of leaders, are assumed to act non cooperatively to maximise individual payoffs. At the same time, each leader's payoffs are constrained not only by their competitor's actions but also by the behaviour of the followers at the lower level which manifests in the form of an equilibrium constraint. By a redefinition of the selection criteria used in evolutionary methods, the paper demonstrates that the solution for such games can be found via a simple modification to a standard evolutionary multiobjective algorithm. We give a proposed algorithm (NDEMO) and illustrate it with numerical examples drawn from both the transportation systems management literature and the electricity generation industry underlying the applicability of NDEMO in multidisciplinary contexts.

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“…Also, Pidd (1997) shows the advantages of soft methodology approaches in this kind of problem. On the other hand, there is a range of perspectives on the problem, going from agent-based simulation (Bunn and Oliveira, 2001;Bower and Bunn, 2000) to game theory (Ferrero et al, 1998). All these perspectives focus on information flows within complex systems, the quantity and quality of the information that is manageable in the decision-making processes and the decision rules being used.…”

Section: Modelling Consumers' Decision Making In Electricity Marketsmentioning

confidence: 99%

Consumers' bounded rationality: the case of competitive energy markets

Dyner

Franco

2004

Syst. Res.

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The recent liberalization of the energy industry provides a challenge for understanding the decision-making processes of the agents involved in their markets. In this new environment, it is of particular interest to investigate consumers' decisions with respect to energy efficiency for a range of purposes that include the assessment of government policy and traders' strategy intents. The neo-classic methodologies reported in the literature generally make strong, and not evident, assumptions with respect to the decision-making processes of end-users, including: complete information, full rationality and lack of risk perception. In this paper, the concept of bounded rationality is incorporated, seeking alternative grounds to the traditional approaches. Against this background, we examine different sets of assumptions based on the concept of rationally bounded energy use and propose policies that may reduce some of the apparent market failures. However, both these claims, as well as the proposed system dynamics models that intend to account for bounded rationality, need to be clearly justified. Here, we do this by indicating, explicitly and implicitly, how bounded rationality operates and what policies and strategies might be appropriate to remove some of the consumers' barriers when confronting decisions. The system dynamics models presented in this paper incorporate consumers' behaviour and alternative policies to assess their likely impact on society. Examples related to the penetration of fuels and lighting appliances are provided, to illustrate the approach.

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Model-Based Comparisons of Pool and Bilateral Markets for Electricity

Cited by 188 publications

References 15 publications

Agent-based Simulation of Electricity Markets -A Literature Review-

Agent-based Simulation of Electricity Markets -A Literature Review-

An evolutionary algorithm based on Nash Dominance for Equilibrium Problems with Equilibrium Constraints

Consumers' bounded rationality: the case of competitive energy markets

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