A Comparative Study on the Bidding Behavior of Pay as Bid and Uniform Price Electricity Market Players

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Abstract

Electricity market price profile is reasonable if in the high demand times, the higher prices are observed and vice versa. The System Capacity Margin (SCM) demonstrates the abundance of electricity in the wholesale electricity market. Naturally, higher SCM causes to lower price but, behavior distortions have been frequently addressed in the literature. In this paper, we study the overall producers' bidding behaviors participating in Iran Electricity Market (IEM) as the low wind penetrated case and the Danish Electricity Market (DEM) as a high wind penetrated case. An index is introduced to describe the overall market players' behaviors. Then, using adaptive Neurofuzzy inference system, a model for the overall bidding behavior is derived. The actual data of a real electricity market (IEM) are analyzed. Although the total trend of prices is descending while the SCM increases, the results show some unexpected behaviors in IEM. Finally, the overall biding behavior in IEM is compared with DEM. Markov transition probability matrices are used to measure the variability of the market behavior in DEM. According to the results, mitigation approaches are proposed for IEM to release the market tightness problems.
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Electricity market price profile is reasonable if in the high demand times, the higher prices are observed and vice versa. The System Capacity Margin (SCM) demonstrates the abundance of electricity in the wholesale electricity market. Naturally, higher SCM causes to lower price but, behavior distortions have been frequently addressed in the literature. In this paper, we study the overall producers' bidding behaviors participating in Iran Electricity Market (IEM) as the low wind penetrated case and the Danish Electricity Market (DEM) as a high wind penetrated case. An index is introduced to describe the overall market players' behaviors. Then, using adaptive Neurofuzzy inference system, a model for the overall bidding behavior is derived. The actual data of a real electricity market (IEM) are analyzed. Although the total trend of prices is descending while the SCM increases, the results show some unexpected behaviors in IEM. Finally, the overall biding behavior in IEM is compared with DEM. Markov transition probability matrices are used to measure the variability of the market behavior in DEM. According to the results, mitigation approaches are proposed for IEM to release the market tightness problems.
Original languageEnglish
Title of host publicationProceedings of the IEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe
Number of pages6
Place of PublicationPalermo, Italy
PublisherIEEE Press
Publication dateJun 2018
Pages1-6
ISBN (Print)978-1-5386-5187-2
ISBN (Electronic)978-1-5386-5186-5
DOI
Publication statusPublished - Jun 2018
Publication categoryResearch
Peer-reviewedYes
EventIEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe - Palermo, Italy
Duration: 12 Jun 201815 Jun 2018
https://www.eeeic.net/eeeic/

Conference

ConferenceIEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe
LandItaly
ByPalermo
Periode12/06/201815/06/2018
Internetadresse

    Research areas

  • pay as bid market, uniform price market, markov model

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