Long term market power mitigation using strategic conservation programs in restructured electricity industry

In this paper a new approach for market power mitigation of a restructured power system is addressed. The method is based on demand side management (DSM) strategic conservation programs. The suggested method incorporates long-term DSM programs and doesn't have negative environmental impacts of structural solutions and limiting features of behavioral solutions for market power reduction. Here, the market power and customers payment are reduced through balancing the market share of Gencos. This is achieved by bidding the efficiency improvement of electrical appliances as a commodity in electricity market. Such a commodity is traded by new market players seeking long-term market transformation objectives. Performance of the proposed method is investigated by numerical studies conducted on a real world system.