Nash–Cournot Equilibrium and Its Impact on Network Transmission Congestion

Abstract

This paper evaluates the impact of congestion on transmission lines when the operation cost is minimized using economic dispatch (ED), comparing the results obtained with the Nash–Cournot Equilibrium (NCE). A methodology is developed for the optimal power flow solution through the NCE, considering the network topology (upper and lower generation limits, upper and lower limits of the transmission lines, and power balance) for a nine-node system without and considering two bilateral power transactions. The results show that the operation cost is higher when the NCE is implemented than ED. However, the problem of congestion in the transmission lines is reduced due to the equilibrium obtained in the power dispatch against minimizing the operation cost in the dispatch; the transmission lines with the most significant participation tend to become congested when additional bilateral transactions occur. Finally, the above is verified by obtaining the mean and median of the transmission line percentages used in the two simulations.