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

Mazaher Haji Bashi; Gholamreza  Yousefi; Habib  Gharagozloo; Hesam Khazraj; Claus Leth Bak; Filipe Miguel Faria da Silva

doi:10.1109/EEEIC.2018.8493776

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

Mazaher Haji Bashi, Gholamreza Yousefi, Habib Gharagozloo, Hesam Khazraj, Claus Leth Bak, Filipe Miguel Faria da Silva

Research output: Contribution to book/anthology/report/conference proceeding › Article in proceeding › Research › peer-review

4 Citations (Scopus)

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.

Original language	English
Title of host publication	Proceedings of the IEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe
Number of pages	6
Place of Publication	Palermo, Italy
Publisher	IEEE Press
Publication date	Jun 2018
Pages	1-6
Article number	8493776
ISBN (Print)	978-1-5386-5187-2
ISBN (Electronic)	9781538651858
DOIs	https://doi.org/10.1109/EEEIC.2018.8493776
Publication status	Published - Jun 2018
Event	IEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe - Palermo, Italy Duration: 12 Jun 2018 → 15 Jun 2018 https://www.eeeic.net/eeeic/

Conference

Conference	IEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe
Country/Territory	Italy
City	Palermo
Period	12/06/2018 → 15/06/2018
Internet address	https://www.eeeic.net/eeeic/

Keywords

pay as bid market
uniform price market
markov model

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10.1109/EEEIC.2018.8493776

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Haji Bashi, M., Yousefi, G., Gharagozloo, H., Khazraj, H., Bak, C. L., & Silva, F. M. F. D. (2018). A Comparative Study on the Bidding Behaviour of Pay as Bid and Uniform Price Electricity Market Players. In Proceedings of the IEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe (pp. 1-6). Article 8493776 IEEE Press. https://doi.org/10.1109/EEEIC.2018.8493776

Haji Bashi, Mazaher ; Yousefi, Gholamreza ; Gharagozloo, Habib et al. / A Comparative Study on the Bidding Behaviour of Pay as Bid and Uniform Price Electricity Market Players. Proceedings of the IEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe. Palermo, Italy : IEEE Press, 2018. pp. 1-6

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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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Haji Bashi, M, Yousefi, G, Gharagozloo, H, Khazraj, H, Bak, CL & Silva, FMFD 2018, A Comparative Study on the Bidding Behaviour of Pay as Bid and Uniform Price Electricity Market Players. in Proceedings of the IEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe., 8493776, IEEE Press, Palermo, Italy, pp. 1-6, IEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe, Palermo, Italy, 12/06/2018. https://doi.org/10.1109/EEEIC.2018.8493776

A Comparative Study on the Bidding Behaviour of Pay as Bid and Uniform Price Electricity Market Players. / Haji Bashi, Mazaher; Yousefi, Gholamreza ; Gharagozloo, Habib et al.
Proceedings of the IEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe. Palermo, Italy: IEEE Press, 2018. p. 1-6 8493776.

Research output: Contribution to book/anthology/report/conference proceeding › Article in proceeding › Research › peer-review

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AB - 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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BT - Proceedings of the IEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe

PB - IEEE Press

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Y2 - 12 June 2018 through 15 June 2018

ER -

Haji Bashi M, Yousefi G, Gharagozloo H, Khazraj H, Bak CL , Silva FMFD. A Comparative Study on the Bidding Behaviour of Pay as Bid and Uniform Price Electricity Market Players. In Proceedings of the IEEE 18th International Conference on Environment and Electrical Engineering and 2nd Industrial and Commercial Power Systems Europe. Palermo, Italy: IEEE Press. 2018. p. 1-6. 8493776 doi: 10.1109/EEEIC.2018.8493776

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

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