The review of market power detection tools in organised electricity markets

Lakic, Edin; Medved, Tomi; Zupančič, Jernej; Gubina, Andrej F.

doi:10.1109/eem.2017.7982010

Cited by 9 publications

(12 citation statements)

References 13 publications

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“…Market power can be defined as the ability to hold the price above the competitive level, exclude competitors from the market, or to control the total output of the market [74]. There is consensus that due to the physical system constraints and entry barriers, exercise of market power in energy markets is especially relevant and also difficult to detect [75]. Due to the locality of reactive power and, therefore, the reduced competition, market power is an even bigger problem in reactive power markets [76].…”

Section: Literature: Market Power and Market Manipulationmentioning

confidence: 99%

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Reactive Power Markets: A Review

2022

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Liberalization of the energy system sets the way towards market-based solutions for ancillary service provision. Local reactive power markets are envisioned to achieve more economically and technically efficient reactive power provision to solve voltage control problems in future distribution and transmission grids. However, market-based reactive power procurement is a difficult and yet unsolved problem. This survey provides a comprehensive overview of the characteristics and hardships of reactive power markets. That is followed by a literature overview of reactive power market design, including local markets and markets on system operator level. Further, methods how to analyse reactive power markets are discussed, focusing on market power, game theoretical approaches, Reinforcement Learning, and manipulation of reactive power markets. From this overview, trends and current research gaps are derived and some general research recommendations are given to serve as a guideline for future research in the field of reactive power markets.

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Section: Literature: Market Power and Market Manipulationmentioning

confidence: 99%

“…In the following, we discuss market power in reactive power markets. For a more general review of market power in energy markets, refer to [74] and [75].…”

Section: Literature: Market Power and Market Manipulationmentioning

confidence: 99%

Reactive Power Markets: A Review

2022

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“…where C max is the Lagrangian multiplier vector of the congested lines flow constraints; P min is the vector of minimum generation of high cost units; P max is the vector of maximum generation of low cost units; a is the vector of the intercept of the bid functions; a, b, C, D and E are the middle vector variables; a, b and D are defined in [24] and the elements of C and E are defined in (4).…”

Section: )mentioning

confidence: 99%

“…A comprehensive overview of market power definitions and indices is investigated in [3]. Moreover, in [4], some research works about market power exercising and detection techniques are reviewed. The regulatory should monitor the electricity market to evaluate the ability of market players for exercising market power [5].…”

Section: Introductionmentioning

confidence: 99%

Locational marginal price share: a new structural market power index

Hajiabadi

Samadi

2019

J. Mod. Power Syst. Clean Energy

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Market power is known as the ability of units and generation companies (GenCos) to change electricity price profitably. As cleared in the definition, locational marginal price (LMP) is the most important key in market power evaluation. Therefore, the main objective of the paper is to analyze market power of units and GenCos based on their abilities to change electricity price. At the first step, using Karush-Kuhn-Tucker (KKT) conditions of Lagrangian method, LMP is decomposed into four main components. These components indicate the share of each unit at the LMP of each bus. These values are calculated by the proposed analytical method, and cannot be obtained using simulation methods. At the second step, ''unit-based LMP_S'' index, which indicates the contribution factor of each unit at LMP of each bus, is proposed as a new structural market power index. This index is also used as an effective tool to determine the most profitable coalition between two units. Using that, the market operator can predict highly potential collusions. Moreover, ''GenCosbased LMP_S'' index is proposed. Using this effective tool, the contribution of each GenCo, which owns multiple units in various buses, at the LMP of each bus is discovered. The proposed market power indices are calculated on the IEEE 24-bus test system and compared with some conventional structural market power indices. Incremental profits of units due to change of unit's strategies verify the accuracy of proposed method.

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“…However, these previous studies focus less on the impact of emerging market participants, including RESs, DRSs, prosumers, etc. [17]. Meanwhile, few studies have categorized the various evaluation technologies from the viewpoint of both the supply and demand sides.…”

Section: Introductionmentioning

confidence: 99%

Review of Market Power Assessment and Mitigation in Reshaping of Power Systems

Shang

Ding

Cui

2022

Journal of Modern Power Systems and Clean Energy

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The deregulation of the power industry requires avoiding market power abuse to maintain the market competitiveness. To this end, a sequence of assessment measurements or mitigation mechanisms is required. Meanwhile, the increasing renewable energy resources (RESs) and flexible demand response resources (DRSs) are changing the behaviors of market participants and creating new cases of market power abuse. Such new circumstances bring the new evaluation and control methods of market power to the forefront. This paper provides a comprehensive review of market power in the reshaping of power systems due to the increasing RES and the development of DRS. The market power at the supply side, demand side, and in the multi-energy system is categorized and reviewed. In addition, the applications of market power supervision measures in the US, the Nordics, UK, and China are summarized. Furthermore, the unsolved issues, possible key technologies, and potential research topics on market power are discussed.

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The review of market power detection tools in organised electricity markets

Cited by 9 publications

References 13 publications

Reactive Power Markets: A Review

Reactive Power Markets: A Review

Locational marginal price share: a new structural market power index

Review of Market Power Assessment and Mitigation in Reshaping of Power Systems

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