Strategic Bidding and Equilibria in Coupled Gas and Electricity Markets

摘要: The wide adoption of gas fired units and power-to-gas technology brings remarkable interdependency between natural electricity infrastructures. This paper studies the equilibria coupled energy markets driven by strategic bidding behavior: each producer endeavours to maximizes its own profit subjecting market clearing outcome. is formulated as an equilibrium problem with constraints (EPEC). A special diagonalization algorithm (DA) devised, in which unilateral or found inner loop given rival's strategy; interaction two are tackled outer loop. Case on test systems validates proposed methodology.