`a`
Journal of Industrial and Management Optimization (JIMO)
 

Electricity day-ahead markets: Computation of Nash equilibria

Pages: 985 - 998, Volume 11, Issue 3, July 2015      doi:10.3934/jimo.2015.11.985

 
       Abstract        References        Full Text (325.0K)       Related Articles       

Margarida Carvalho - Faculdade de Ciências, Universidade do Porto and INESC TEC, Rua do Campo Alegre, 4169-007 Porto, Portugal (email)
João Pedro Pedroso - Faculdade de Ciências, Universidade do Porto and INESC TEC, Rua do Campo Alegre, 4169-007 Porto, Portugal (email)
João Saraiva - Faculdade de Engenharia, Universidade do Porto and INESC TEC, Rua Dr. Roberto Frias, 4200 - 465 Porto, Portugal (email)

Abstract: In a restructured electricity sector, day-ahead markets can be modeled as a game where some players - the producers - submit their proposals. To analyze the companies' behavior we have used the concept of Nash equilibrium as a solution in these multi-agent interaction problems. In this paper, we present new and crucial adaptations of two well-known mechanisms, the adjustment process and the relaxation algorithm, in order to achieve the goal of computing Nash equilibria. The advantages of these approaches are highlighted and compared with those available in the literature.

Keywords:  Electricity market, Nash equilibria, adjustment process, relaxation algorithm, combinatorial optimization, auctions/bidding.
Mathematics Subject Classification:  Primary: 91A80; Secondary: 90C27, 65K05, 90C59.

Received: May 2012;      Revised: June 2014;      Available Online: October 2014.

 References