December 2004

19
R. Rajaraman. “Optimal Bidding Strategies in Electricity Markets”
Example 3: Multiple Markets, Sequential Auction
•There are two markets, energy and reserves
•The auctions are sequential:
ØEnergy market is first cleared
ØReserve market is cleared next
ØEach auction is uniform-price
ØMW vs. price bid must be non-decreasing