Critically-congested Nash-Cournot equilibria in electricity networks

Abstract

Oligopolistic generators behaviour may result in equilibria characterized by critically-congested lines, that is, congested lines such that arbitrarially small generation changes cause them to be not-congested. The nature of such equilibria, under the Cournot (quantity bids) hypothesis is discussed, and an algorithm proposed to compute them. Probabilities measures arise in a natural way in the analysis and in the proposed algorithm