A Unifying Approach to Assessing Market Power in Deregulated Electricity Market
Title: A Unifying Approach to Assessing Market Power in Deregulated Electricity Market
Speaker: Chenye Wu (Tsinghua University)
Time: 14:30-15:30, 18 June 2013
Venue: Lecture Room, 3rd Floor, Building #5, State Key Laboratory of Computer Science, Institute of Software, Chinese Academy of Sciences
Electricity market is unique in that if a liberalized electricity market is not well designed, it may substantially erode many of its potential benefits, e.g., as in the California electricity crisis in the years of 2000 and 2001. In particular, a deregulated electricity
market must be designed such that market players cannot gain market power.
It is shown that a generator may not gain market power if the regional independent system operator (ISO) can still meet the total load demand
even after excluding that generator from the market. Otherwise, the generator in question becomes crucial to meet the demand, which will
give that generator the advantage to arbitrarily manipulating the prices. While assessing market power based on the above definition is
not difficult in an electricity pool. Market power analysis can become significantly more challenging if the network topology and the
capacities of the transmission lines are taken into consideration. Therefore, we address the problem of identifying the
potential for market power in presence of transmission constraints. In particular, we present a novel unifying approach to assess market
power that can carry the combined advantages of several existing market power assessment indices in the literature.
Dr. Chenye Wu received his PhD in Computer Science and Bachelor degree in Electronic Engineering both from Tsinghua University in 2013 and
2009, respectively. He was advised by Prof. Andrew Yao in the Institute for Interdisciplinary Information Sciences at Tsinghua
University. After his graduation, he will join Carnegie Mellon University as a postdoctoral researcher. He was a visiting scholar at
various universities: the Chinese University of Hong Kong, Texas Tech University, Missouri University of Science and Technology, Carnegie
Mellon University, and California Institute of Technology. Currently, he is working on the design, optimization, distributed control and
game-theoretic analysis of smart power systems and electricity market.