Deregulated electricity markets with thermal losses and production bounds: models and optimality conditions

0449000 - ÚTIA 2016 RIV FR eng J - Journal Article
Aussel, D. - Červinka, Michal - Marechal, M.
Deregulated electricity markets with thermal losses and production bounds: models and optimality conditions.
R A I R O - Operations Research. Roč. 50, č. 1 (2016), s. 19-38. ISSN 0399-0559. E-ISSN 1290-3868
R&D Projects: GA ČR GAP402/12/1309; GA ČR GA201/09/1957
Institutional support: RVO:67985556
Keywords : Deregulated electricity market * production bounds * mathematical program with complementarity constraints * M-stationarity * calmness
Subject RIV: BA - General Mathematics
Impact factor: 0.550, year: 2016

A multi-leader-common-follower game formulation has been recently used by many authors to model deregulated electricity markets. In our work, we first propose a model for the case of electricity market with thermal losses on transmission and with production bounds, a situation for which we emphasize several formulations based on different types of revenue functions of producers. Focusing on a problem of one particular producer, we provide and justify an MPCC reformulation of the producer’s problem. Applying the generalized differential calculus, the so-called M-stationarity conditions are derived for the reformulated electricity market model. Finally, verification of suitable constraint qualification that can be used to obtain first order necessary optimality conditions for the respective MPCCs are discussed.
Permanent Link: http://hdl.handle.net/11104/0257828