Auction Model Simulator for the Colombian Electricity Market

Abstract

Colombia's electricity market consists of a public structure denominated as Wholesale Energy Market (WEM). One of the main processes that take place in the WEM are hourly power auctions, were, based on the offers from energy generators, the electrical system operator covers the energy demand of low power level users. However, even though the energy generation utilities are public service companies, great part of the information related to their offering prices during auctions is private or hard to acquire, which makes it hard to fully understand or characterize the energy auction's dynamics. In the need of a tool that eases the short term understanding of the WEM, this article develops a computational algorithm in MATLAB capable of replicating Colombia's power market behaviour in terms of the market clearing price. The algorithm can be used with academic purposes to stablish diverse case studies, or by generation companies to determine the auction offer that suits them the most.