Forward Contract Negotiation Equilibrium in Uncongested Electricity Markets

Abstract

In this paper, a Nash Equilibrium model for negotiation process of forward contracts among some producers and consumers in an uncongested power system is proposed. Each market player tries to maximize his/her profit in aggregate of day-ahead electricity market and forward contracts. Uncertainty of day-ahead electricity market prices and demand of consumers in contract negotiation period are considered by some discrete scenarios which their probabilities are different based on each market players' viewpoint about the uncertain parameters in delivery period. Proposed model is applied to a test system and impacts of different parameters on the simulation results are discussed.