Abstract
This article proposes a system of stochastic mixed complementarity problems (MCP) for calculating the Bayesian Nash equilibrium (BNE) in an electricity spot market. The generators submit strategic multilevel price-offer functions under incomplete information about their rivals’ marginal cost. This strategic multilevel price offering of each generator is modeled as a standard stochastic bilevel program which is then reformulated as its equivalent MCP. The merger concept is employed and formulated to model multilevel price-offer functions. We then propose the BNE-MCP model which solves the stochastic MCP models of all generators together. A scenario reduction technique is also developed to accurately model the wind and demand uncertainty in the proposed BNE-MCP model. The proposed BNE-MCP model is carefully studied on two illustrative examples. The modified IEEE 14-, 30-, and 57-node systems are also examined in our article.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
