Dynamic ex-ante market power analysis model in Day-ahead Electricity Market

Traditional ex-ante market power analysis methods mostly identify the market power from the electricity supply and demand, market share and transmisson constraints in a single period. Due to the neglect of the unit’s output flexibility constraints, especially the impact of multi-period coupling constraints, the traditional methods may cause the "false positive" or "false negative" error of the identification of market power in the electricity spot market. In view of this, this paper established a dynamic ex-ante market power analysis model based on the SCED and SCUC model, and considered the impact of unit flexibility constraints on the formation of market power in the spot market to avoid the "missing report". In order to avoid the "false report" of market power, the key bidding blocks to be tested are constructed after the units submit their bidding curve, and the market power testing are implied for them. Then, we can make the accurate detection of where and when the market power will emerge. This model is a mixed integer nonlinear programming problem. We used linear algebra technology to convert it to mixed integer linear programming problem, which greatly reduced the difficulty of model solving.