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Application of Supply Function Equilibrium Model to Describe the Interaction of Generation Companies in the Electricity Market

  • Natalia AizenbergEmail author
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 9869)

Abstract

The paper studies the trade in the spot electricity market based on submitting bids of energy consumers and producers to the market operator. We investigate supply function equilibrium (SFE) model, in which generation capacities are integrated into large generation companies that have a common purpose of maximizing their profits. For this case we prove the existence and uniqueness of equilibrium for a linear function of aggregate demand and quadratic costs. The mechanism is tested on the basis of the Siberian electric power system, Russia.

Keywords

Electricity market Models of imperfect markets Oligopoly Model of supply function equilibrium Liberalization 

Notes

Acknowledgments

This work was partially supported by the Russian Foundation for Basic Research, grant 16-06-00071.

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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.Melentiev Energy Systems Institute SB RASIrkutskRussia

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