Modeling of short-term financial transmission rights in a secondary auction market using game theory

Tabrizian, Mohammad; Seifi, Hosein; Sheikh-al-Eslami, Mohamad Kazem; Shahmirzad, Hamidreza

doi:10.22105/dmor.2022.305248.1486

Document Type : Original Article

Authors

¹ Department of Electrical and Computer Engineering, Yadegar-e-Imam Khomeini (RAH) Shahre Rey Branch, Islamic Azad University, Tehran, Iran.

² Department of Power Electrical Engineering, Faculty of Electrical and Computer Engineering, Tarbiat Modares University, Tehran, Iran.

https://doi.org/10.22105/dmor.2022.305248.1486

Abstract

Purpose: Finding the best situation for the expected profit by each of the participants (players) in the secondary auction market of financial congestion transmission rights.
Methodology: From the point of view of game theory, finding at least one Nash equilibrium point for this competition takes into account the various constraints of the secondary auction market.
Findings: This paper study the issue of financial transmission congestion contracts then uses the game theory to analyze the short-term (weekly) secondary FTR markets, in which the players manage the transmission risk through optimal biddings.
Originality/Value: Congestion risk management is one of the most important topics of transmission network management in restructured power systems and electricity markets in the world, especially markets based on regional or local pricing, whose main tool is transmission financial contracts. In the other scientific articles published so far, mainly the modeling and analysis of the primary auction markets of transission congestion financial rights have been discussed, and the secondary auction markets of these contracts, which have a different pattern, have not been scientifically analyzed. The main innovation of this article is to pay attention to this issue using application of game theory.

Keywords

20.1001.1.25385097.1402.8.2.9.3

Main Subjects

Game Theory

References

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Journal of Decisions and Operations Research

Modeling of short-term financial transmission rights in a secondary auction market using game theory

References

References

Volume 8, Issue 2
August 2023
Pages 446-462

Modeling of short-term financial transmission rights in a secondary auction market using game theory

References

References

Volume 8, Issue 2August 2023Pages 446-462

Volume 8, Issue 2
August 2023
Pages 446-462