Withholding analysis under nodal pricing considering demand response

Capacity withholding of Gencos is a strategic behavior in power market to increase the market price profitably. In this paper an index has been proposed to analyze the withholding in power market under nodal pricing considering the behaviors of Discos and Gencos simultaneously. This index determines the nodal effect of Gencos and Discos on nodal prices. Commonly a Genco apply capacity withholding to increase the market price but in nodal pricing capacity withholding may not increase the price in all system conditions. In some system conditions an increase in power generation may increase the bus price. So under nodal pricing or locational marginal pricing (LMP) the capacity withholding is not always a strategic behavior in power market to increase the market price.

Keywords:

capacity withholding , nodal price , demand response