Supply Function Equilibrium-based Generation Capacity Expansion Planning for Capacity Market

Aoxiang Zhang; Yibo Ding; Huayi Wu; Zhao Xu

doi:10.1109/EI264398.2024.10991504

Supply Function Equilibrium-based Generation Capacity Expansion Planning for Capacity Market

Aoxiang Zhang
, Yibo Ding
, Huayi Wu
, Zhao Xu

Research output: Chapter in book / Conference proceeding › Conference article published in proceeding or book › Academic research › peer-review

Abstract

This paper presents a generation capacity expansion planning method for the capacity markets with generation companies' market power. The strategies of the system operator and generation companies in the capacity market are formulated as a bi-level optimization model. The model is solved by analyzing the competition of generation companies as a non-cooperative game and employing Supply Function Equilibrium to obtain the capacity prices. The case studies verified the effectiveness of the proposed method in reducing the capacity payment and mitigating the abuse of market power possessed by generation companies.

Original language	English
Title of host publication	2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024
Publisher	Institute of Electrical and Electronics Engineers Inc.
Pages	4006-4010
Number of pages	5
ISBN (Electronic)	9798331523527
DOIs	https://doi.org/10.1109/EI264398.2024.10991504
Publication status	Published - Nov 2024
Event	8th IEEE Conference on Energy Internet and Energy System Integration, EI2 2024 - Shenyang, Shenyang, China Duration: 29 Nov 2024 → 2 Dec 2024

Publication series

Name	2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024

Conference

Conference	8th IEEE Conference on Energy Internet and Energy System Integration, EI2 2024
Country/Territory	China
City	Shenyang
Period	29/11/24 → 2/12/24

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

capacity market
generation expansion planning
non-cooperative game
supply function equilibrium

ASJC Scopus subject areas

Energy Engineering and Power Technology
Renewable Energy, Sustainability and the Environment
Electrical and Electronic Engineering
Safety, Risk, Reliability and Quality
Control and Optimization
Computer Networks and Communications
Hardware and Architecture

More information

10.1109/EI264398.2024.10991504

Cite this

Zhang, A., Ding, Y., Wu, H., & Xu, Z. (2024). Supply Function Equilibrium-based Generation Capacity Expansion Planning for Capacity Market. In 2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024 (pp. 4006-4010). (2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/EI264398.2024.10991504

Zhang, Aoxiang ; Ding, Yibo ; Wu, Huayi et al. / Supply Function Equilibrium-based Generation Capacity Expansion Planning for Capacity Market. 2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024. Institute of Electrical and Electronics Engineers Inc., 2024. pp. 4006-4010 (2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024).

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abstract = "This paper presents a generation capacity expansion planning method for the capacity markets with generation companies' market power. The strategies of the system operator and generation companies in the capacity market are formulated as a bi-level optimization model. The model is solved by analyzing the competition of generation companies as a non-cooperative game and employing Supply Function Equilibrium to obtain the capacity prices. The case studies verified the effectiveness of the proposed method in reducing the capacity payment and mitigating the abuse of market power possessed by generation companies.",

keywords = "capacity market, generation expansion planning, non-cooperative game, supply function equilibrium",

author = "Aoxiang Zhang and Yibo Ding and Huayi Wu and Zhao Xu",

note = "Publisher Copyright: {\textcopyright} 2024 IEEE.; 8th IEEE Conference on Energy Internet and Energy System Integration, EI2 2024 ; Conference date: 29-11-2024 Through 02-12-2024",

year = "2024",

month = nov,

doi = "10.1109/EI264398.2024.10991504",

language = "English",

series = "2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024",

publisher = "Institute of Electrical and Electronics Engineers Inc.",

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Zhang, A, Ding, Y, Wu, H & Xu, Z 2024, Supply Function Equilibrium-based Generation Capacity Expansion Planning for Capacity Market. in 2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024. 2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024, Institute of Electrical and Electronics Engineers Inc., pp. 4006-4010, 8th IEEE Conference on Energy Internet and Energy System Integration, EI2 2024, Shenyang, China, 29/11/24. https://doi.org/10.1109/EI264398.2024.10991504

Supply Function Equilibrium-based Generation Capacity Expansion Planning for Capacity Market. / Zhang, Aoxiang; Ding, Yibo; Wu, Huayi et al.
2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024. Institute of Electrical and Electronics Engineers Inc., 2024. p. 4006-4010 (2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024).

Research output: Chapter in book / Conference proceeding › Conference article published in proceeding or book › Academic research › peer-review

TY - GEN

T1 - Supply Function Equilibrium-based Generation Capacity Expansion Planning for Capacity Market

AU - Zhang, Aoxiang

AU - Ding, Yibo

AU - Wu, Huayi

AU - Xu, Zhao

PY - 2024/11

Y1 - 2024/11

N2 - This paper presents a generation capacity expansion planning method for the capacity markets with generation companies' market power. The strategies of the system operator and generation companies in the capacity market are formulated as a bi-level optimization model. The model is solved by analyzing the competition of generation companies as a non-cooperative game and employing Supply Function Equilibrium to obtain the capacity prices. The case studies verified the effectiveness of the proposed method in reducing the capacity payment and mitigating the abuse of market power possessed by generation companies.

AB - This paper presents a generation capacity expansion planning method for the capacity markets with generation companies' market power. The strategies of the system operator and generation companies in the capacity market are formulated as a bi-level optimization model. The model is solved by analyzing the competition of generation companies as a non-cooperative game and employing Supply Function Equilibrium to obtain the capacity prices. The case studies verified the effectiveness of the proposed method in reducing the capacity payment and mitigating the abuse of market power possessed by generation companies.

KW - capacity market

KW - generation expansion planning

KW - non-cooperative game

KW - supply function equilibrium

UR - https://www.scopus.com/pages/publications/105007635003

U2 - 10.1109/EI264398.2024.10991504

DO - 10.1109/EI264398.2024.10991504

M3 - Conference article published in proceeding or book

AN - SCOPUS:105007635003

T3 - 2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024

SP - 4006

EP - 4010

BT - 2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024

PB - Institute of Electrical and Electronics Engineers Inc.

T2 - 8th IEEE Conference on Energy Internet and Energy System Integration, EI2 2024

Y2 - 29 November 2024 through 2 December 2024

ER -

Zhang A, Ding Y, Wu H, Xu Z. Supply Function Equilibrium-based Generation Capacity Expansion Planning for Capacity Market. In 2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024. Institute of Electrical and Electronics Engineers Inc. 2024. p. 4006-4010. (2024 IEEE 8th Conference on Energy Internet and Energy System Integration, EI2 2024). doi: 10.1109/EI264398.2024.10991504

Supply Function Equilibrium-based Generation Capacity Expansion Planning for Capacity Market

Abstract

Publication series

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UN SDGs

Keywords

ASJC Scopus subject areas

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