An Agent-Based Computational Laboratory for Testing the Economic Reliability of Wholesale Power Market Designs

Deddy Koesrindartoto, Junjie Sun and Leigh Tesfatsion ()

Staff General Research Papers from Iowa State University, Department of Economics

Abstract: In April 2003 the U.S. Federal Energy Regulatory Commission (FERC) proposed the Wholesale Power Market Platform (WPMP) for common adoption by U.S. wholesale power markets. The WPMP is a complicated market design that has been adopted in some regions of the U.S. but resisted in others on the grounds that its reliability has not yet been sufficiently tested. This article reports on the development of an agent-based computational framework for exploring the economic reliability of the WPMP. The key issue under study is the extent to which the WPMP is capable of sustaining efficient, orderly, and fair market outcomes over time despite attempts by market participants to gain advantage through strategic pricing, capacity withholding, and/or induced transmission congestion. Related work can be accessed at: http://www.econ.iastate.edu/tesfatsi/AMESMarketHome.htm

Keywords: Restructured wholesale power markets; FERC market design; Agent-based modeling (search for similar items in EconPapers)
JEL-codes: B4 C0 C6 C7 L1 L5 Q4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp and nep-com
Date: 2005-07-06
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Related works:
Working Paper: An Agent-Based Computational Laboratory for Testing the Economic Reliability of Wholesale Power Market Designs (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:isu:genres:12388

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