Spatial oligopolistic electricity models with Cournot generators and regulated transmission prices

A study was conducted to analyze a model of a oligopoly supporting spatially dispersed generators and consumers, and multi-period demand. Producers were represented to behave in a Cournot manner with regulated transmission prices. An equilibrium of the model was then characterized as a set of generation output at which no generation will determine more profit during the unilateral modification of output from the set and a set of transmission prices promoting specific regulatory requirements. Moreover, the model was utilized to stimulate a long-run electricity market supporting regulated transmission prices. Results indicated that the removal of monopoly rights and regulation correlated with increases in market power.