Abstract
The linear supply function equilibrium (SFE) model can be used to investigate bid-based electricity pool markets. Several studies assume that the market players construct optimal strategic bids by parameterizing the linear marginal cost function of their generating units. Four different types of parameterization are possible, for which the slope and/or the intercept of the marginal cost functions are varied. This paper reviews the existing literature and proposes a primal-dual nonlinear interior point algorithm to solve a bi-level market problem with AC network representation, using any of the parameterization methods. Part II of this paper uses the proposed algorithm to examine the effects of the different parameterizations on the resulting SFE solutions, the role of network complexity and the nature of the equilibrium points.
Sign-in/Register to access full text options 
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.
