Optimizing the mix and structure of successor companies in electricity market restructuring

摘要

Unilateral market power from the pivotal player continues to be the main problem in restructured electricitymarket. Hence it is crucial to design the electricity market that could minimize the market power. This paperprovides a theoretical analysis on optimal mix and structure of successor companies from monopoly GenCoprior to electricity market restructuring. The purpose of this examination is to analyse the non-cooperativebehaviour of generating firm, calculate the equilibrium and optimize the electricity market structure underspecific market assumptions and constraints (generation capacity, transmission congestion and DC load flow).The model applied here is Cournot market modelling by conducting market power and pricing assessment onsimple power system. Based on the successor company analysis and multi plant merger perspective, thispaper provides a conceptual algorithm to determine the optimal structure of generation companies inOligopoly electricity market prior to power market restructuring, which is influenced by the topology of powersystem and mix of generation technology. Based on empirical evidence applying Residual Supply Index asmarket power mitigation, this research found that market power in the market structure is strongly influencedby the generation technology mix and reserve margin of the system. In addition, the characteristic of powersystem that is subject to the generation and transmission constraints, will determine the optimal configurationof the electricity market structure.