Operational risks, bidding strategies and information policies in restructured power markets1

摘要

Advanced analytical tools are enabling the estimation of new measures of operational reliability in power systems. In bid-based and bilateral contract markets, these estimates provide valuable information to market participants. Such information improves market efficiency through more informed decision-making. However, it may also result in opportunistic bidding strategies that adversely affects economic efficiency. The relationship between risk and bidding strategies is explored in the paper. The importance of the availability of a good information set on reliability is demonstrated analytically. Examples of information availability in restructured markets is given and questions about the dimensions of market information policies are discussed. An illustrative example shows how private gains from withholding information can be obtained.