Dynamic LMP Response Under Alternative Price-Cap and Price-Sensitive Demand Scenarios

Hongyan Li, Junjie Sun and Leigh Tesfatsion ()

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

Abstract: This study investigates the complicated nonlinear effects of demand-bid price sensitivity and supply-offer price caps on Locational Marginal Prices (LMPs) for bulk electric power when profit-seeking generators can learn over time how to strategize their supply offers. Systematic computational experiments are conducted using AMES, an open-source agent-based test bed developed by the authors. AMES models a restructured wholesale power market operating through time over an AC transmission grid subject to line constraints, generation capacity constraints, and strategic trader behaviors. Related work can be accessed at: http://www.econ.iastate.edu/tesfatsi/AMESMarketHome.htm

Keywords: Restructured wholesale power markets; Agent-based test bed; Locational marginal prices; demand-bid price sensitivity; supply-offer price caps (search for similar items in EconPapers)
JEL-codes: B4 C0 C6 C7 C9 D4 D43 D8 L1 L13 Q4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp, nep-com and nep-mic
Date: 2008-08-19
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Persistent link: http://EconPapers.repec.org/RePEc:isu:genres:12975

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