Analysis and visualization of market power in electric power systems

This paper discusses the assessment and visualization of marker power in bulk electricity markets, with the explicit consideration of transmission system constraints. In general, market power is the ability of a particular seller or group of sellers to maintain prices profitably above competitive levels for a significant period of time. When an entity has and exercises marker power, it ceases to be a price-taker and becomes a price-maker. The restructuring of the electric industry in many parts of the world has encouraged competitive markets with the objective of reaping the benefits of lower prices and innovation that competition can provide. Such benefits are not attainable when a player utilizing the electric transmission system may exert market power. This paper describes the procedures for analyzing and visualizing such situations. (C) 2001 Elsevier Science B.V. All rights reserved.