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In this study, a model is developed to investigate the implications of an hourly day-ahead competitive power market on generator profits, electricity prices, availability and supply security.
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But at the peak hours that all plants should generate at their maximum power to respond to the demand, the generators' profits gained in the Nash equilibrium with the uniform pricing mechanism are equal to or even more than the profits in pay-as-bid.
In addition, at the peak hours that all plants should generate at their maximum power like the case on July 24, the generators' profits gained in the Nash equilibrium with the uniform pricing mechanism are equal to or even more than the profits in pay-as-bid.
In this paper, we evaluate the generators' profits based on the market clearing price (market price).
Soleymani et al. (2008) tried to propose a reasonable approach to maximize generators' profits.
In this article, we are evaluating the generators' profits based on the market clearing price (market price).
Therefore, the problem changes from each generator's profits maximization to simultaneous generators' profits maximization and Nash equilibrium occurs when none of the participants is unilaterally reluctant to change the equilibrium and the solution.
Therefore, the problem changes from each generator's profits maximization to simultaneous generators' profits satisfaction and Nash equilibrium occurs when none of the participants is unilaterally reluctant to the change of the equilibrium and the solution.
Mathematically, optimizing problem of the generators' profits is considered as a search problem of vector (vec{u}) that causes to maximize the function.
Kang et al. (2007) have assumed that each generator has complete information about its profit and the other market generators' profits and tries to estimate other competitors' biddings to maximize its profit by use of the Nash equilibrium concept.
Utility companies generate profits from selling electricity from large, mostly fossil fuel power plants, and solar power generators are beginning to eat into their profits.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com