Market power analysis in power systems using PSO based must run indices

Abstract

The development of restructuring has encouraged and brought up competitive markets in power systems. However, the exercise of market power evokes monopoly into the power system and tends to decrease competitiveness. This article assesses the market power of a generating company in a power system using must run indices and proposes a method to mitigate market power. Modified must run generation, must run share (MRS) and nodal must run share indices are used to quantify the market power of generating companies. Phase shifting transformers (PST) are installed in selected lines for mitigating the market power. Particle swarm optimization is used in the determination of must run indices and optimizing the angle of Phase Shifting Transformers. IEEE 14 bus test system is used to illustrate the proposed technique. The analysis also includes the impact of contingencies. Sensitivity analysis is performed to analyze the impact of phase shifting angle variation on MRS. The results clearly quantifies the market power of a generating company and show that the market power incurred by the generating companies can be minimized by installing PST with optimum phase shift angle.