Impact of Generator/Demand Constraints on Market Clearing Price under Pool Market with Elastic Demand

Abstract

In recent years, state electricity boards are getting transformed towards the restructuring process. It has brought lot of challenges in market environment. The main objective of deregulation is to provide competition and opens new choices to benefit the consumers. In this competitive environment, determination of Market Clearing Price (MCP) is the main aim of a pool operator. Its goal is to maximize the societal welfare function i.e. both Gencos’ and the Discos’ have to get benefited. In this paper, instead of taking stepped bid function from the generators and consumers, quadratic bid functions are taken as an input and the impact of MCP on generator limits has been investigated with and without losses.