An Application of Analytics in Green Electricity Markets With Cap-and-Trade Programs

作者：Nanduri Vishnuteja^*; Otieno Wilkistar

来源：Emj-Engineering Management Journal, 2013, 25(3): 74-84.

• Restructured Electricity Markets
• Cap-and-Trade Programs
• Analytics
• Equilibrium
• Game-Theoretic Modeling

New cap-and-trade (CT) programs (e.g., Regional Greenhouse Gas Initiative) to mitigate climate change have created the need for decision support in investment, bidding, and oversight in electricity markets. This need is critical for practicing engineering managers in restructured electricity markets operating under market-based competition. In this research we develop a bi-level game-theoretic model to obtain optimal bidding strategies for power generating companies in restructured markets under a CT program. We demonstrate the applicability of our model on data from Northern Illinois electricity market and discuss managerial implications. Detailed sensitivity analyses show how CT programs can impact electricity and allowance prices.

• 出版日期2013-9