Identification of Market Power in Large-Scale Electric Energy Markets

Abstract

Market power potential is a serious concern for efficient and competitive operation of centrally-dispatched electricity markets. Traditional measures for market power ignore underlying physical characteristics of the electric grid that may be exploited for local advantage. In our prior work we have proposed a revenue sensitivity-based approach for identifying market participants with market power potential, and we demonstrated detailed cases using a 30-bus system[1] [2] [3]. In this paper we address computational challenges for scaling our method to large systems, and we present practical extensions to a portion of our work that enables the evaluation of very large, RTO-scale electric power grids.