Equilibrium analysis in imperfect traders' and GenCos' market

The paper models the strategic behavior of traders, GenCos and ISO using the multi-leader-follower framework. The outcomes of the strategic behavior of the players have been modeled using an equilibrium problem with equilibrium constraints. From a policy perspective it is seen that allowing the GenCos to hold FTRs may be welfare enhancing under certain demand conditions and ownership patterns of transmission rights and generation assets. The proposed model has been simulated on a 3 bus system.