In Part II of this two-part paper, we analyze the marginal prices derived in Part I of this two-part paper within a robust optimization framework. The load and generation are priced at Locational Marginal Price (LMP) while the uncertainty and generation reserve are priced at Uncertainty Marginal Price (UMP). The Financial Transmission Right (FTR) underfunding is demonstrated when there is trans...

We study the dynamics of liquidity provision by dealers during an asset market crash, described as a temporary negative shock to investors’aggregate asset demand. We consider a class of dynamic market settings where dealers can trade continuously with each other, while trading between dealers and investors is subject to delays and involves bargaining. We derive conditions on fundamentals, such ...

Ant colony optimization (ACO) which is inspired by the natural behavior of ants in finding the shortest path to food is appropriate for solving the combinatorial optimization problems. Therefore, it is used to solve the unit commitment problem (UCP) and attain the minimum cost for scheduling thermal units in order to produce the demand load. In this paper modified ACO (MACO) is used to solve th...

In this paper unit commitment problem (UCP) with spinning reserve and ramp rate constraint has been solved using Ant Colony System (ACS). In this model, foraging behavior of the real ants for finding its food from its start (nest) to its destination (food) is simulated to obtain the optimum solution. A search strategy has been adopted which involves the artificial ants to obtain the minimum cos...

The cross-border effects of a capacity market and a strategic reserve in interconnected electricity markets are modeled using an agent-based modeling methodology. Both capacity mechanisms improve the security of supply and reduce consumer costs. Our results indicate that interconnections do not affect the effectiveness of a capacity market, while a strategic reserve is affected negatively. The ...

The increasing penetration of variable energy resources in modern electric power systems requires additional flexibility in ancillary service provision to maintain reliable and efficient grid operations. However, full recognition and appropriate compensation of this flexibility is difficult to ensure within current power market designs due to rigidities in service definitions and requirements. ...

Author: Stephen D. Williamson1 Affiliations: Department of Economics, Washington University in St. Louis; Richmond Federal Reserve Bank; St. Louis Federal Reserve Bank Correspondence: Department of Economics, Washington University in St. Louis, Campus Box 1208, St. Louis, MO 63130; [email protected]; Phone 314-935-9283; Fax 314-935-4156 Abstract:A segmented markets model is constructed ...

Our objective is to determine if a first-price auction or a posted-price market provides a seller with the larger expected revenue when buyers have a common value for the item being sold. An agent-based, posted-price market and an agent-based, first-price common-value auction with a reserve price are developed to compare these selling methods. When the seller cannot impose a reserve price in th...