The book “Complementarity Modeling in Energy Markets” has a number of interesting GAMS models in the back. Some of these models are presented in scalar format, i.e. bypassing the indexing facilities. Here my attempt to express these models in a more generic format. Often that means making the models more general, which may require some extra effort and thinking upfront. Besides making the models more extensible I also hope this makes the models more structure-revealing. Besides delivering results a model should also convey the concepts on which is built.
In this model we consider a network of markets with suppliers in each market:
We have two type of producers: exporters and producers that only serve their own market. They optimize their profits and their optimization problem is actually very much alike.
Another player is the TCO: the Transportation System Operator. This agent also maximizes its profit.
Combining these systems of First Order Conditions (KKT conditions) with a Market Clearing condition leads to a small MCP model. Here follows my version:
Some of the results:
---- 151 PARAMETER results
A B C D node1 node2
base case .unit cost 10.000 12.000 15.000 18.000