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Technical Report: DCC-2012-06

Equilibria on the Day-Ahead Electricity Market

Margarida Carvalho

FCUP and INESC TEC
e-mail: margarida.carvalho@dcc.fc.up.pt

João Pedro Pedroso

FCUP and INESC TEC
e-mail: jpp@fc.up.pt
September 2012

Abstract

In the energy sector, there has been a transition from monopolistic to oligopolistic situations (pool markets); each time more companies' optimization revenues depend on the strategies of their competitors. The market rules vary from country to country. In this work, we model the Iberian Day-Ahead Duopoly Market and find exactly which are the outcomes (Nash equilibria) of this auction using game theory.


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