Equilibrium and non-equilibrium models of the power markets

Abstract

The competition trend within the electricity segment has motivated the research community efforts and directed them towards investigations of deregulation of the electricity markets. This underlines significant research needs to insure providing appropriate design and functioning, as well as analysis support models that would fit to recent electricity market settings. Thus, this work focuses on facets of the deregulated electricity markets and on modeling the power market. It aims primarily at identifying, classifying and characterizing the quite bewildering multiplicity of the methods available in the specialized literature on the topic. This study offers review of the most appropriate works related to electricity market models, like the equilibrium and non-equilibrium models, and some other related areas of research, like optimization as an exogenic variable or firm decisions function. The agent and Cournot based supply function has non-equilibrium and equilibrium simulation models under the conditions of both imperfect and perfect competition. Lastly, it characterizes the approaches most suitable for implementing different types of market analysis and planning studies in the electricity sector for new setting. Key words: Electricity market deregulation, equilibrium and non-equilibrium market models, market behavior.