Back to Search Start Over

Auction Design in Day-Ahead Electricity Markets (Republished)

Authors :
Contreras, Javier
Candiles, Oscar
de la Fuente, Jose Ignacio
Gomez, Tomas
Source :
IEEE Transactions on Power Systems. August, 2001, Vol. 16 Issue 3, 409
Publication Year :
2001

Abstract

Competition in day-ahead electricity markets has been established through auctions where generators and loads bid prices and quantities. Different approaches have been discussed regarding the market auction design. Multi-round auctions, despite its implementation complexity, allow market participants to adapt their successive bids to market prices considering their operational and economic constraints. However, most of the day-ahead electricity market implementations use noniterative single-round auctions. This paper presents a market simulator to compare both auction models. Different auction alternatives, such as the Spanish single-round auction that takes into account special conditions included in the generator bids, and multi-round auctions with different stopping rules, are analyzed. The results and acquired experience in the simulation of the Spanish market, started in January 1998, are presented. Hourly market prices, average daily price, price/demand correlation and several economic efficiency indicators, such as generator surplus, consumer surplus and social welfare, are compared to derive conclusions regarding the performance of the auction alternatives. Editor's note: 'This paper originally appeared in the IEEE Transactions on Power Systems, vol. 16, no. 1, pp. 88-96, Feb. 2001. It is being republished due to typesetting errors.'-M. P. Bhavaraju Index Terms--Auctions, bidding strategies, electricity markets, market clearing price.

Details

ISSN :
08858950
Volume :
16
Issue :
3
Database :
Gale General OneFile
Journal :
IEEE Transactions on Power Systems
Publication Type :
Academic Journal
Accession number :
edsgcl.76727711