Office of Research, UC Riverside
Amir Hamed Mohsenian-Rad
Associate Professor
Electrical & Computer Eng
hamedrad@ucr.edu
(951) 827-2387


A Unified Approach to Quantifying Market Power in the Future Grid

AWARD NUMBER
006462-002
FUND NUMBER
21205
STATUS
Closed
AWARD TYPE
3-Grant
AWARD EXECUTION DATE
9/16/2013
BEGIN DATE
10/1/2013
END DATE
9/30/2016
AWARD AMOUNT
$160,311

Sponsor Information

SPONSOR AWARD NUMBER
ECCS-1307756
SPONSOR
NATIONAL SCIENCE FOUNDATION
SPONSOR TYPE
Federal
FUNCTION
Organized Research
PROGRAM NAME

Proposal Information

PROPOSAL NUMBER
13040366
PROPOSAL TYPE
New
ACTIVITY TYPE
Basic Research

PI Information

PI
Mohsenian-Rad, Amir Hamed
PI TITLE
Other
PI DEPTARTMENT
Electrical & Computer Eng
PI COLLEGE/SCHOOL
Bourns College of Engineering
CO PIs

Project Information

ABSTRACT

The objective of this research is to develop a unified approach to measuring market power that connects short-term and long-term analysis, while maintaining strong economic foundations and incorporating the transmission system. The approach is to focus first on long-term analysis to develop a rigorous framework on which to build tools for short-term analysis. This combined approach will allow quantification of both the potential for and the exploitation of market power in deregulated electricity markets.

Intellectual merit: This project explores a unique mixture of economics and power systems by building a unifying and comprehensive foundation for measuring market power. It will close the gap in the existing fractured literature on long-term and short-term market power analysis and has the added benefit of providing an important tool for studying the impact on market power of future grid phenomena such as demand response, renewable and distributed generation, and electricity storage.

Broader impact: Market monitoring is essential for maintaining efficient electricity markets: not only is market power a major challenge to the efficiency of today's electricity markets, e.g., the California energy crisis of 2000; the importance of monitoring market power will only grow as we move toward a smarter grid. Thus, an improved understanding of how to identify and quantify market power is of crucial societal importance. Additionally, the proposed research will improve dialogue between the power systems and economics communities. Finally, the proposed research program has a strong potential to successfully make the leap from academia to practice.
(Abstract from NSF)