The role of demand flexibility in addressing Inc-Dec gaming in electricity markets
File(s)
Published version
Author(s)
Pozzi, Luciano
Papadaskalopoulos, Dimitrios
Trovato, Vincenzo
Qiu, Dawei
Strbac, Goran
Type
Journal Article
Abstract
Zonal day-ahead (DA) electricity markets followed by redispatch (RD) markets for congestion management are vulnerable to the strategic bidding behavior known as Inc-Dec gaming. Although previous literature has demonstrated the effects of Inc-Dec gaming, it has neglected the participation of flexible demand in RD markets. This paper addresses this gap by developing a novel multi-period bi-level optimization model of a strategic producer participating in DA and RD markets, accounting for the inherent time-coupling operating characteristics of demand flexibility (DF) in the RD market. This model includes an upper level problem determining the optimal bidding decisions of the strategic producer in the
DA and RD markets, and two lower level problems representing the clearing process of the two markets. The role of DF in addressing Inc-Dec gaming are demonstrated through a small-scale case study involving a 2-node system and a 2-period market horizon, as well as a large-scale case study involving a modified IEEE RTS 24-node system and a daily (24-hour) market horizon.
DA and RD markets, and two lower level problems representing the clearing process of the two markets. The role of DF in addressing Inc-Dec gaming are demonstrated through a small-scale case study involving a 2-node system and a 2-period market horizon, as well as a large-scale case study involving a modified IEEE RTS 24-node system and a daily (24-hour) market horizon.
Date Issued
2025-12-18
Date Acceptance
2025-12-15
Citation
Energies, 2025, 18 (24)
ISSN
1996-1073
Publisher
MDPI AG
Journal / Book Title
Energies
Volume
18
Issue
24
Copyright Statement
© 2025 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
License URL
Identifier
10.3390/en18246626
Subjects
Pozzi, L.
Papadaskalopoulos, D.
Trovato, V.
Qiu, D.
Strbac, G. The Bi-level optimization
demand flexibility
electricity markets
Inc-Dec gaming
redispatch markets
Publication Status
Published
Article Number
ARTN 6626
Date Publish Online
2025-12-18