An agent-based simulation model for a hybrid power market structure is presented. A bilateral transaction mechanism is combined with a uniform-pricing auction settlement in order to isolate the impact of medium-termbilateral contracts on market power and spot prices in a competitive wholesale market setting. First we describe the negotiation method for bilateral trading of energyand then introduce a new approach for bidding in the DA market based on the loadduration curve. We find that, despite the conventional concerns, the foreclosure ef-fect produced by the bilateral agreement between a generation and a retail businesswill not necessarily lead to higher prices, and will be manifested only according tothe specific market characteristics.
|Numero di pagine||0|
|Stato di pubblicazione||Published - 2011|
All Science Journal Classification (ASJC) codes
- Mathematics (miscellaneous)
- Economics, Econometrics and Finance (miscellaneous)