• Journal of Electrical Engineering and Technology
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• v.8 no.4
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• pp.675-685
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• 2013

Generation capacities and transmission line constraints in a competitive electricity market make it troublesome to compute Nash Equilibrium (NE) for analyzing participants' strategic generation quantities. The NE can cause a mixed strategy NE rather than a pure strategy NE resulting in a more complicated computation of NE, especially in a multiplayer game. A two-level hierarchical optimization problem is used to model competition among multiple participants. There are difficulties in using a mathematical programming approach to solve a mixed strategy NE. This paper presents heuristics applied to the mathematical programming method for dealing with the constraints on generation capacities and transmission line flows. A new formulation based on the heuristics is provided with a set of linear and nonlinear equations, and an algorithm is suggested for using the heuristics and the newly-formulated equations.

• Journal of Electrical Engineering and Technology
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• v.7 no.2
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• pp.141-150
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• 2012

The present study examines an efficient congestion management system compatible with the evolving environment. The key is to build an information model shared and exchanged for marketbased solutions to alleviate congestion. Traditional methods for congestion management can be classified into two categories, i.e., the centralized scheme and the decentralized scheme, depending on the extent to which the independent system operator (ISO) is involved in market participants' (MPs) activities. Although the centralized scheme is more appropriate for providing reliable system operation and relieving congestion in near real-time, the decentralized scheme is preferred for supporting efficient market operation. The minimum set of information between the ISO and MPs for decentralized scheme is identified: i) congestion-based zone, ii) Power Transfer Distribution Factors, and iii) transmission congestion cost. The mathematical modeling of the proposed information is expressed, considering its process of making effective use of information. Numerical analysis is conducted to demonstrate both cost minimization from the MP perspective and the reliability enhancement from the ISO perspective based on the proposed information exchange scheme.

• Journal of Energy Engineering
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• v.15 no.4 s.48
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• pp.256-276
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• 2006

Transmission congestion is one of the key factors to local market power in competitive electricity markets. Financial transmission rights provide the financia] protection to their holders by paying back the congestion rent. A variety researches have shown that the existing trading mechanisms on transmission right can exacerbate market power. This paper proposes an alternative methodology in mitigating the local market power using the Contingent Transmission Rights on the locational marginal pricing scheme. The proposed methodology was demonstrated with the Optimal Power Flow.