We consider a stochastic version of the Stackelberg-Nash-Cournot model proposed by Murphy et al. (1983). In the first stage, the leader chooses and announces his production level taking into account the reaction of the followers. The decision of the leader is taken when market demand is...

Decentralization in electricity restructuring is a growing trend that Power Marketers are ex- pected to take advantage of. We consider a market composed of Power Marketers, an Indepen- dent System Operator, generators and retailers. Power Marketers behave a` la Cournot-Nash and the ISO...

Former generation capacity expansion models were formulated as optimization problems. These included a reliability criterion and hence guaranteed security of supply. The situation is different in restructured markets where investments need to be incentivised by the margin resulting from...

The progressive relocation of part of the Energy Intensive Industries (EIIs) out of Europe is one of the possible consequences of the combination of emission charges and higher electricity prices entailed by the EU-Emission Trading Scheme (EU-ETS). In order to mitigate this effect, EIIs have...

A two-stage game is used in this paper to model a long-run market with spatially separated producers and with multi-period demands: first, firms simultaneously and independently invest their capacities; second, after capacities are set up in the first stage and made public, firms engage in a...

Long-run oligopolistic expansion behavior in an electricity supply market is modeled in the paper. The market is assumed to charge electricity prices equal to short-run marginal costs plus optimal rationing prices (optimal spot prices). Electricity generation firms can affect prices (and then...

The inception of the Emission Trading System in Europe (EU-ETS) has made power price more expensive. This affects the competitiveness of electricity intensive industrial consumers and may force them to leave Europe. Taking up of a proposal of the industrial sector, we explore the possible...

The restructuring of electricity systems can follow different paradigms that have different impacts. The objective of this paper is to show that Variational Inequalities Problems provide a natural tool for modeling electricity restructuring in a wide range of relevant situations. Besides being a...