Competitive Power Market Analysis - Evaluation of Market Power due to Congestion Effects on Transmission System
DOI:
https://doi.org/10.24084/repqj01.366Keywords:
Electricity market, market concentration, market power, PTDF (Power Transfer Distribution Factors), congestion, SIC (System Interchange Capacity)Abstract
The new electrical market deregulation has given rise to competition with the goal of price fall and technological innovation in the sector.
In the last few years a great deal of attention is given to the possibility of a group of producers (agents) exercise market power by means of congestion effects.
Market power due to the possibility of a small number of generators act in a combined way is presented. The paper describes a algorithm used to detect, quantify and evaluate the impact of these kind of strategic actions on market concentration. The results obtained from the study on two distinct example networks shows that this kind of actions can affect strongly market share and must be predict by the ISO.
