Gaming an Oligopoly

Gaming an Oligopoly: A Game-Theoretic Computational Modeling Approach on the Dutch Secondary Reserve Capacity Market

Witteveen, R.F.W.

Cunningham, S. (mentor)

Technology, Policy and Management

Multi Actor Systems

Systems Engineering, Policy Analysis and Management (SEPAM)

2016-10-28

This thesis is written in the context of a world in which renewable energy assumes an ever growing share within the Dutch electricity sector. Given the fluctuating output of renewable energy sources, the importance of the Dutch secondary reserve capacity market is expected to increase considerably in upcoming years. Its architecture, a monopsony in which the TSO seeks to reserve a predetermined quantity of reserve capacity from a limited set of producers, motivated to take a closer inspection on this market by capturing it in a game theoretic model. This study’s main realization is the delivery of a proof of concept for a game theoretic model, capable to assist producers in optimizing bidding strategies. Furthermore, this research displayed the ability to apply the adopted research approach to investigate implications of different market designs. This feature is exemplified by the discovering of the declining price anomaly.

Game theory
Oligopolistic competition
Strategic bidding
Policy analysis
Ancillary services market
Power market modeling
Declining price anomaly

http://resolver.tudelft.nl/uuid:957b6176-7dac-4f63-b7e1-b09e5c8c5a05

Student theses

master thesis

(c) 2016 Witteveen, R.F.W.