FTR Market Modeling
Research Abstract
Suppliers in deregulated electric power markets
compete for financial transmission rights to hedge against congestion
charges by submitting bids to the system operator. The ISO
obtains an FTR allocation strategy that maximizes sales revenue
while satisfying simultaneous feasibility. As in any noncooperative
game, finding Nash equilibrium bidding strategies is of critical
importance to the FTR market participants. In this paper, a
matrix game theoretic modeling approach is presented that
can be used to examine equilibrium bidding behavior of the
participants in FTR markets. The matrix game model presents
a significant deviation from the bilevel optimization approach
commonly used to model FTR and energy allocation problems.
The proposed model allows consideration of multi-dimensional
FTR bids in networks with multiple participants. A value iteration
based reinforcement learning algorithm is used for solving
pure strategy Nash equilibrium for FTR allocation. A sample
network with three buses and four participants is considered for
demonstrating the viability of the game theoretic model. Several
numerical experiments on the sample network are conducted to
assess impacts of variations of bid and network parameters on
the FTR market outcome.
Publications
Conference Presentations
- Babayigit,
C. and Das, T. K. Impact of FTR Settlement on Energy Market
Performance in restructured Power Market. INFORMS Annual Meeting 2007,
Seattle, WA.
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