Spot market mechanism design and competitivity issues in electric power

The performance of a sealed bid-offer and an open display real time uniform price double auction in a three-node radial network and compared in terms of efficiency, price competitivity and the distribution of surplus over a d emand cycle. We also compare three Versus six independent generation compan ies who own the same aggregate portfolio assets. The environment provides a stressful market for wholesale buyers on-peak (the competitive price is ab ove resale value) and far baseload generator units off-peak (the competitiv e price is less than cost). Three firms are as competitive as six under sea led bid-offer, but not the double auction. (C) 2001 Elsevier Science B.V, A ll rights reserved,