Strategic market behaviors in a simulated South African electricity market

Abstract

This paper presents a comparative study on market behaviors in a proposed South African electricity market assuming two market structures. The results show that the design of market structure is essential to ensure proper competition. Market structure plays an important role on the determination of market clearing price and production. The more concentrated the market will result in higher market price. Customers are charged at an excessively high payment for electricity consumption in a more concentrated market. Overall profits in the market also vary with the change of market structure and competition models.