Numerical Solutions to the Hydrothermal Coordination Problem Considering an Oligopolistic Market Structure

RUBIALES, A.; MAYORANO, F.; PABLO A. LOTITO

Rio de Janeiro, Brasil

Congreso; ENGOPT 2008; 2008

This paper introduces a numerical method to solve the hydrothermal scheduling problem in oligopolistic markets. The electric power industry in Argentina has shifted from a scenario in which operation schedule is fully regulated to a new competitive deregulated scenario in which there is a small number of generation companies which satisfy a large amount of the total power demand of the system. To emulate this kind of market structure, an oligopolistic market model has been developed. To solve the hydrothermal coordination problem under these assumptions, both operative restrictions, and market economical aspects must be considered. In the present work we study how the price and configuration of the different units of the system are affected by the use of hydroelectric plants and also by pumped storage units through a mathematical market model represented by a variational inequality.  The solution method is based on a relaxation algorithm, and the Nikaido-Isoda function is used for the calculation of Nash-Cournot equilibrium. The numerical method developed was tested in a reduced electricity network which emulates the different aspects of the Argentinean system. This network was developed on the base of the IEEE 30-bus system considering the inclusion of hydroelectric plants and pumped storage units.