Metrics for Application of Revenue Sensitivity Analysis to Predict Market Power Coalitions in the Electricity Markets

TitleMetrics for Application of Revenue Sensitivity Analysis to Predict Market Power Coalitions in the Electricity Markets
Publication TypeReport
Year of Publication2004
AuthorsCain, Mary B., and Fernando L. Alvarado
Pagination8
Date Published08/2004
Keywordsconsortium for electric reliability technology solutions (certs), energy analysis and environmental impacts department
Abstract

This paper explores a mathematical method for detecting groups of generators in an electric power system that have the potential to benefit from exercising market power. Applications of this method include metrics for measuring or detecting the possibility of market power. This paper focuses on the properties of revenue and dispatch to bid sensitivity matrices, and develops methods of identifying load pockets from the sensitivity matrices, and how the matrices can provide metrics for market power.

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