Capacity Expansion in Deregulated Power Markets
Research Abstract
According to the
National Energy Policy (NEP) developed in 2001 and the Annual Energy
Outlook 2007, energy demand in the U.S. is slated to increase
sharply over the next two decades. It is stated in the NEP that the
United States will need about 393,000 MW of new generating capacity
by 2020 to meet this growing demand. With about a third of the
states in the U.S. trading electricity in restructured markets, a
significant proportion of the aforementioned capacity expansion will
have to take place in a market based environment. But, most of the
existing literature is focused on capacity expansion under the
regulated market paradigm. As a result, authorities in many
restructured electricity markets have attempted to regulate
decisions on generation investments, instead of leaving it to the
market forces, to avoid capacity shortages. Our proposed research
intends to fill this vacuum by developing a comprehensive methodology
to obtain multi-period multi-generator equilibrium capacity
expansion strategies in restructured electricity markets. Our research objectives are as follows.
1. Develop a risk-constrained game theoretic modeling framework
within which a multi-period, multi-player, and noncooperative
generation expansion planning (GEP) process can be analyzed.
2. Develop a computationally viable agent-based solution strategy
for the three-tier generation expansion game model and demonstrate
the strategy on existing deregulated power networks.
3. Build an open-source software test bed suitable for use by
restructured electricity market participants and researchers to
assess the long-term capacity expansion process under alternative
market design configurations.
4. Engage in curricular development in power system economics, and
recruit and train a cadre of graduate and undergraduate students
from varied ethnic backgrounds to design, develop, and operate
deregulated power networks. Develop support programs for teacher
training and enhancing science education in K-12 system.
A Three-Tier Generation Expansion Game Model
Publications
Conference Presentations
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Nanduri, V. and Das, T. K. A Three-Tier Game Theoretic Model for
Multi-Period Multi-Generator Capacity Expansion in Restructured
Markets. INFORMS Annual Meeting 2007, Seattle, WA.
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