A comparison of pool cost and consumer payment minimization in electricity markets /

This thesis deals with market rules that define the price and the generation schedule in electricity markets. The research has focused on three approaches: Pool Cost Minimization (PCM) with marginal pricing, Consumer Payment Minimization (CPM), and mixed Pool Cost/Consumer Payment Minimization (PCM/CPM). Each method is examined from the perspective of the solution characteristics and the relevant economic principle, together with numerical examples. Especially in the CPM method, several fundamental theoretical results are obtained regarding the nature of the minimum consumer payment and the corresponding generation schedule. In addition, some generator bidding strategies are studied with respect to PCM and CPM so as to identify how Gencos can obtain a competitive advantage