Complementarity Modeling in Energy Markets

1. Front Matter

   Pages i-xxvi

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2. Introduction and Motivation

   • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

   Pages 1-29

3. Optimality and Complementarity

   • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

   Pages 31-69

4. Some Microeconomic Principles

   • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

   Pages 71-125

5. Equilibria and Complementarity Problems

   • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

   Pages 127-179

6. Variational Inequality Problems

   • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

   Pages 181-220

7. Optimization Problems Constrained by Complementarity and Other Optimization Problems

   • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

   Pages 221-262

8. Equilibrium Problems with Equilibrium Constraints

   • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

   Pages 263-321

9. Algorithms for LCPs, NCPs and VIs

   • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

   Pages 323-384

10. Some Advanced Algorithms for VI Decomposition, MPCCs and EPECs

    • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

    Pages 385-432

11. Natural Gas Market Modeling

    • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

    Pages 433-476

12. Electricity and Environmental Markets

    • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

    Pages 477-513

13. Multicommodity Equilibrium Models: Accounting for Demand-Side Linkages

    • Steven A. Gabriel, Antonio J. Conejo, J. David Fuller, Benjamin F. Hobbs, Carlos Ruiz

    Pages 515-560

14. Back Matter

    Pages 561-629

    PDF

This addition to the ISOR series introduces complementarity models in a straightforward and approachable manner and uses them to carry out an in-depth analysis of energy markets, including formulation issues and solution techniques. In a nutshell, complementarity models generalize: a. optimization problems via their Karush-Kuhn-Tucker conditions b. on-cooperative games in which each player may be solving a separate but related optimization problem with potentially overall system constraints (e.g., market-clearing conditions) c. conomic and engineering problems that aren’t specifically derived from optimization problems (e.g., spatial price equilibria) d. roblems in which both primal and dual variables (prices) appear in the original formulation (e.g., The National Energy Modeling System (NEMS) or its precursor, PIES). As such, complementarity models are a very general and flexible modeling format. A natural question is why concentrate on energy markets for this complementarity approach? s it turns out, energy or other markets that have game theoretic aspects are best modeled by complementarity problems. The reason is that the traditional perfect competition approach no longer applies due to deregulation and restructuring of these markets and thus the corresponding optimization problems may no longer hold. Also, in some instances it is important in the original model formulation to involve both primal variables (e.g., production) as well as dual variables (e.g., market prices) for public and private sector energy planning. Traditional optimization problems can not directly handle this mixing of primal and dual variables but complementarity models can and this makes them all that more effective for decision-makers.

• Complementarity Modeling
• Decision Making
• Energy Markets
• Equilibrium
• Operations Research

From the reviews:

“This book is to address the topic of complementarity modeling to make these modeling approaches widely accessible to a larger audience. … I strongly recommend it for energy practitioners and researchers in energy market modeling … . I am convinced that they are a fruitful and challenging area of research, which will serve as a guide to real-world applications. Therefore, I strongly recommend this book to all modelers in energy systems and markets.” (Dominik Mӧst, Interfaces, Vol. 43 (6), November-December, 2013)

“This monograph represents the first comprehensive overview of electricity, environmental, and natural gas market models through the use of complementarity techniques. … it provides a wonderful set of examples that are crucial in conveying the material. … this monograph represents an indispensable and enduring resource for any serious researcher in energy markets.” (Uday V. Shanbhag, Mathematical Reviews, October, 2013)

• , Department of Civil and Environmental En, University of Maryland, College Park, USA

  Steven A. Gabriel

• University of Castilla - La Mancha, Ciudad Real, Spain

  Antonio J. Conejo

• , Department of Management Sciences, University of Waterloo, Waterloo, Canada

  J. David Fuller

• , Department of Geography & Environmental, The Johns Hopkins University, Baltimore, USA

  Benjamin F. Hobbs

• École Centrale Paris and Supélec, Châtenay-Malabry, France

  Carlos Ruiz

Steven A. Gabriel received his M.A. and Ph.D. degrees in Mathematical Sciences from Johns Hopkins University in 1989 and 1992, respectively, and his M.S. in Operations Research from Stanford University in 1984. He is currently Associate Professor, Civil Systems Program, Department of Civil and Environmental Engineering, University of Maryland.

Antonio J. Conejo received the M.S. degree from Massachusetts Institute of Technology, Cambridge, MA, in 1987 and the Ph.D. degree from the Royal Institute of Technology, Stockholm, Sweden, in 1990. He is currently Professor of Electrical Engineering at the Universidad de Castilla – La Mancha, Ciudad Real, Spain.

J. David Fuller received his Ph.D. in Interdisciplinary Studies from the University of British Columbia in 1980. His research interests focus on Energy Economics and Operations Research; Mathematical Programming Models of Economic Equilibrium with Applications to Energy Markets Forecasting and Electricity Market Design; and Decomposition of Linear, Nonlinear and Equilibrium Programs. He is currently a Professor of Management Sciences, in the Faculty of Engineering at the University of Waterloo, in Waterloo, Ontario, Canada.

Benjamin F. Hobbs received his Ph.D. in Environmental Systems Engineering from Cornell University in 1983; his MS in Resource Management and Policy from Syracuse University in 1978, and his BS in Mathematics and Environmental Sciences from North Dakota State University in 1976. He has served as Chair of the JHU President’s Climate Change Task Force since 2008.

Carlos Ruiz is currently a Ph.D. candidate under Dr. Conejo at the University de Castilla.

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