OPF-based power market concentrations

Abstract

It is widely believed that congestion in a power transmission grid allows a generator to exert market power. This paper explores the use of an alternative measure of market concentrations to the Herfindahl-Hirschman Index (HHI). The proposed index uses information about a generator's contribution to a load and computes market concentrations on a bus-by-bus basis. This allows the independent system operator (ISO) or grid operator to detect potential abuses of market power by generators due to congestion