Proposing New Analytical Competitiveness Indices to Assess Total Electricity Market Deviation Possibility

Evaluating the potential of market power and collusion between market player, as the deviant behaviors in competitive electricity market, can provide more clear insights when assessing power market dynamics. Although many research works have explored this issue, no study has yet proposed an analytical cumulative index to assess the possibility of deviant behavior in a power market as a whole. The main goal of this paper is to propose accurate and analytically indices to evaluate the effects of deviation possibilities for individual market players, and accordingly, the power market as a whole. These indices evaluate both bid-based and capacity-based types of two strategic behaviors, i.e., market power and the collusion between market players. Our proposed competitiveness indices are analytical and can be calculated for different load levels easily, so they are more convenient for large networks. Since, the proposed model is analytical, it can be directly solved in a single shot with off-the-shelf softwares with no need to further trial-based methodologies. The IEEE 24-bus Test System (RTS) has been considered for simulation purposes. According to the obtained results, it is shown that our competitiveness indices can evaluate the deviant behavior possibility in a fast, precise and transparent manner, so they are valuable tools for market regulator to check the overall market competition level in different load levels.