Evaluation of GENCO's strategy in creating a congested system for exercising market power

An independent system operator must be able to simulate market performance and to identify participants which have potential points to exercise market power with the purpose of guarantee a safe, transparent and fair competition among market participants. This manuscript recognises the impact of bidding strategy taken by prospective generation company within the potential region to be congested. In this paper a composite method for investigating market power under congestion condition is proposed, which employs shift-factor optimal power flow based LMP-lossless scheme. A 24-bus IEEE Reliability Test system (IEEE-RTS) is employed as the case study to investigate some financial implications of market power under congestion circumstances.