The operator of a centralized market for electrical energy has received the bids shown in the table
Question:
The operator of a centralized market for electrical energy has received the bids shown in the table below from three GENCOs for the supply of electrical energy during a given period.
a. Build the supply curve.
b. Assume that this market operates unilaterally, that is, that the demand does not bid and is represented by a forecast. Calculate the market price, the quantity produced by each company and the revenue of each GENCO for each of the following load forecasts: 400MW, 600MW, 875 MW.
c. Suppose that instead of being treated as constant, the load is represented by its inverse demand curve, which is assumed to have the following form: D = L — 4.0 π , where D is the demand, I. is the forecasted load (given in b) and x is the price. Calculate the effect that this price sensitivity of demand has on the market price and the quantity of electricity traded (for all the three load forecasts).
| GENCO | Quantity (MW) | Price (S/MWh) |
| A | 100 | 12.5 |
| A | 100 | 14.0 |
| A | 50 | 18.0 |
| B | 200 | 10.5 |
| B | 200 | 13.0 |
| B | 100 | 15.0 |
| C | 50 | 13.5 |
| C | 50 | 14.5 |
| C, | 50 | 15.5 |
Expert Answer:
a From the given information sort out the cumulative Quantity as like shown below Genco Quantity MWh ... View the full answer
