Implementation of bilateral contracts in an Electricity Wholesale Market, through a Hydrothermal Simulator that considers the Transmission Network

RODOLFO RETA; JOSÉ HERMOZA

San Salvador

Congreso; 2018 IEEE CONCAPAN XXVIII; 2018

This paper analyzes the impact of physical andfinancial bilateral contracts on electricity market prices. Bilateralcontracts are included in an electricity market simulator whichmodeled the collusive behavior of firms by means of Game Theory.The market simulator considers hydrothermal generation and thetransmission network. The impact of bilateral contracts isanalyzed on two types of Electricity Wholesale Market. The firsttype is based on free prices and the second is based on a centralizeddispatch which considers generation audited costs. Simulationresults show how different types of bilateral contracts change thecollusive strategies of firms and impact on market power.