Solving net constrained hydrothermal Nash-Cournot equilibrium problems via the proximal decomposition method

L. A. PARENTE; PABLO A. LOTITO; ALDO RUBIALES; M. SOLODOV

PACIFIC JOURNAL OF OPTIMIZATION

YOKOHAMA PUBL

Lugar: Yokohama; Año: 2013 vol. 9 p. 301 - 322

1348-9151

We consider the coupled-in-time Nash-Cournot equilibrium model represent- ing behavior of electricity generating companies acting in an Oligopolistic market. Some key features of the model are short-term planning horizon, the possibility for the hydraulic units to pump water back in order to reuse it, and transmission net constraints. Mathematically, it is shown that the problem can be cast as a monotone variational inclusion with some special structure suitable for decomposition. Then the variable metric proximal decomposition method is applied. Some numerical experiments are presented, including a medium-size real-life system. Among other things, it is quantified when the policy of pumping water back can deliver better profits in water-stressed scenarios.