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Solving Mixed Strategy Nash-Cournot Equilibria under Generation and Transmission Constraints in Electricity Market
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 Title & Authors
Solving Mixed Strategy Nash-Cournot Equilibria under Generation and Transmission Constraints in Electricity Market
Lee, Kwang-Ho;
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 Abstract
Generation capacities and transmission line constraints in a competitive electricity market make it troublesome to compute Nash Equilibrium (NE) for analyzing participants' strategic generation quantities. The NE can cause a mixed strategy NE rather than a pure strategy NE resulting in a more complicated computation of NE, especially in a multiplayer game. A two-level hierarchical optimization problem is used to model competition among multiple participants. There are difficulties in using a mathematical programming approach to solve a mixed strategy NE. This paper presents heuristics applied to the mathematical programming method for dealing with the constraints on generation capacities and transmission line flows. A new formulation based on the heuristics is provided with a set of linear and nonlinear equations, and an algorithm is suggested for using the heuristics and the newly-formulated equations.
 Keywords
Cournot model;Electricity market;Generation capacity;Mixed strategy;Nash equilibrium (NE);Power transfer distribution factor (PTDF);Transmission congestion;
 Language
English
 Cited by
1.
Strategy Equilibrium in Stackelberg Model with Transmission Congestion in Electricity Market,;

Journal of Electrical Engineering and Technology, 2014. vol.9. 1, pp.90-97 crossref(new window)
1.
Modified penalty function method for optimal social welfare of electric power supply chain with transmission constraints, International Journal of Electrical Power & Energy Systems, 2014, 57, 90  crossref(new windwow)
2.
Strategy Equilibrium in Stackelberg Model with Transmission Congestion in Electricity Market, Journal of Electrical Engineering and Technology, 2014, 9, 1, 90  crossref(new windwow)
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