Investigation of the impact of demand elasticity on electricity market using extended Cournot approach
International Journal of Electrical Power and Energy Systems
Department of Electrical Engineering, University of Cape Town, Cape Town, South Africa
The impact of demand elasticity on electricity market is investigated in this paper. An extended Cournot model is derived from the classical Cournot model by including the consideration of demand elasticity. Simulation results show that, the demand elasticity can effectively influence the market outcomes, i.e. market clearing price, load payment, generation companies' (GENCOs) individual output and profit. Furthermore, comparison of results using the extended Cournot model with those obtained using an industrial-grade software package (Plexos) shows a good agreement. © 2014 Elsevier Ltd. All rights reserved.
Commerce; Electric industry; Cournot; Cournot competition; Cournot model; Demand elasticities; Electricity market; Generation companies; Market Clearing Price; Market outcomes; Elasticity