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A MPCC-NLP Approach for an Electric Power Market Problem

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DOI: 10.4236/sgre.2010.11009    4,753 Downloads   7,959 Views   Citations

ABSTRACT

The electric power market is changing-it has passed from a regulated market, where the government of each country had the control of prices, to a deregulated market economy. Each company competes in order to get more cli.e.nts and maximize its profits. This market is represented by a Stackelberg game with two firms, leader and follower, and the leader anticipates the reaction of the follower. The problem is formulated as a Mathematical Program with Complementarity Constraints (MPCC). It is shown that the constraint qualifications usually assumed to prove convergence of standard algorithms fail to hold for MPCC. To circumvent this, a reformulation for a nonlinear problem (NLP) is proposed. Numerical tests using the NEOS server platform are presented.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

H. Rodrigues, M. Monteiro and A. Vaz, "A MPCC-NLP Approach for an Electric Power Market Problem," Smart Grid and Renewable Energy, Vol. 1 No. 1, 2010, pp. 54-61. doi: 10.4236/sgre.2010.11009.

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