An ACE Wholesale Electricity Market Framework with Bilateral Trading

Davide Provenzano ()
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Davide Provenzano: University of Palermo

A chapter in Emergent Results of Artificial Economics, 2011, pp 177-188 from Springer

Abstract: Abstract In this paper, an agent-based simulation model for a hybrid power market structure is presented. A bilateral transaction mechanism is combined with a uniform-pricing auction settlement in order to isolate the impact of medium-term bilateral contracts on market power and spot prices in a competitive wholesale market setting. First we describe the negotiation method for bilateral trading of energy and then introduce a new approach for bidding in the DA market based on the load duration curve. We find that, despite the conventional concerns, the foreclosure effect produced by the bilateral agreement between a generation and a retail business will not necessarily lead to higher prices, and will be manifested only according to the specific market characteristics.

Keywords: Electricity Market; Bilateral Trading; Bidding Price; Bilateral Agreement; Spot Prex (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnechp:978-3-642-21108-9_15

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DOI: 10.1007/978-3-642-21108-9_15

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