Market Power in Electric Power Distribution Systems

Matt Roveto, Yury Dvorkin

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The roll-out of distributed energy resources (DERs) challenges the current operating practice of distribution utilities due to increased volatility and uncertainty of nodal power injections. Furthermore, many DERs are independently-owned and, therefore, will likely be operated without cooperation with a local utility. This combination of uncertainty and self-interest can motivate DERs to act strategically in future distribution (retail) markets to maximize their payoff. Without assuming a particular distribution market design, this paper investigates engineering mechanisms for strategic behavior by independently-owned DERs in the context of radial and voltage-constrained distribution systems. We derive conditions that identify an exercise of market power by an independently-owned DER and propose a market power metric that accounts for AC power flow physics and uncertainty of nodal power injections. The case study illustrates a range of effects of market power on distribution system operations.

Original languageEnglish (US)
Title of host publication51st North American Power Symposium, NAPS 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781728104072
DOIs
StatePublished - Oct 2019
Event51st North American Power Symposium, NAPS 2019 - Wichita, United States
Duration: Oct 13 2019Oct 15 2019

Publication series

Name51st North American Power Symposium, NAPS 2019

Conference

Conference51st North American Power Symposium, NAPS 2019
CountryUnited States
CityWichita
Period10/13/1910/15/19

Keywords

  • Chance constraints
  • Distributed energy resources
  • Distribution system
  • Market power
  • Radial Network

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Hardware and Architecture
  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering
  • Safety, Risk, Reliability and Quality

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  • Cite this

    Roveto, M., & Dvorkin, Y. (2019). Market Power in Electric Power Distribution Systems. In 51st North American Power Symposium, NAPS 2019 [9000388] (51st North American Power Symposium, NAPS 2019). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/NAPS46351.2019.9000388