Strategic-Agent Equilibria in the Operation of Natural Gas and Power Markets

Sheng Chen and Antonio J. Conejo
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Sheng Chen: College of Energy and Electrical Engineering, Hohai University, Nanjing 210098, China
Antonio J. Conejo: Department of Integrated Systems Engineering and Department of Electrical and Computer Engineering, The Ohio State University, Columbus, OH 43210, USA

Energies, 2020, vol. 13, issue 4, 1-17

Abstract: We consider strategic gas/power producers and strategic gas/power consumers operating in both gas and power markets. We build a flexible multi-period complementarity model to characterize day-ahead equilibria in those markets. This model is an equilibrium program with equilibrium constraints that characterizes the market behavior of all market agents. Using a realistic case study, we analyze equilibria under perfect and oligopolistic competition. We also analyze equilibria under different levels of information disclosure regarding market outcomes. We study as well equilibria under different ownership schemes: no hybrid agent, some hybrid agents, and only hybrid agents. Finally, we derive policy recommendations for the regulators of both the gas and the power markets.

Keywords: natural-gas market; electricity market; equilibrium analysis (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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