Strategic bidding and rebidding in electricity markets
Administrators only until March 2018 | Request a copy from author
Available under License Creative Commons Attribution Non-commercial No Derivatives 4.0.
Successful deregulation in electricity markets depends crucially on the ability of market regulation to promote and maintain free competition. There are, however, important physical characteristics in electricity markets, such as the constraints imposed by the physical transmission infrastructure, that have the potential to undermine competition and provide opportunities for market participants to exploit temporary positions of market power. In this paper, the regional market of Queensland, Australia is analysed. It is found that strategic behaviour by generators exists and is closely related to the occurrence of the kind of extreme price events that characterise many deregulated electricity markets. In addition, rebidding behaviour by baseload generators immediately after extreme price events is shown to have negative impacts on the operation of the market. The key message is that promotion of competition in electricity markets can have undesirable consequences unless the regulatory policy is carefully designed to counter strategic behaviour by market participants.
Impact and interest:
Citation counts are sourced monthly from and citation databases.
These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.
Citations counts from theindexing service can be viewed at the linked Google Scholar™ search.
|Item Type:||Journal Article|
|Keywords:||Electricity market, Transmission constraints, Synchronisation time, Ramp-up rate, Strategic bidding, Rebidding, Counter-price flow|
|Divisions:||Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
|Copyright Owner:||Copyright 2016 Elsevier|
|Copyright Statement:||Licensed under the Creative Commons Attribution; Non-Commercial; No-Derivatives 4.0 International. DOI 10.1016/j.eneco.2016.07.011|
|Deposited On:||25 Aug 2016 05:15|
|Last Modified:||29 Nov 2016 04:23|
Repository Staff Only: item control page