Electricity Market Simulator to Assess the Implementation of Free Prices considering the Transmission Network

RODOLFO RETA; JOSÉ HERMOZA

Lima

Conferencia; IEEE Transmission and Distribution PES LA; 2018

After the liberalization of the electricity sector,electricity wholesale markets computed market prices based onaudited costs or based on free prices. The first one has beenimplemented in many Latin American countries, while free priceshave been implemented in more liberalized and competitivemarkets. The aim of this work is to develop a hydrothermalmarket simulator to evaluate the impact of migrating an electricitymarket based on audited costs to one based on free prices. Thesimulator considers different generating firms and includes thetransmission network by means of a methodology of analyticalderivation to find equilibria of pure strategies. The strategicbehavior of the firms has been modeled through the Nash-CournotEquilibrium.