Variational inequality models of restructured electricity systems

Abstract

The restructuring of electricity systems can follow different paradigms that have different impacts. The objective of this paper is to show that Variational Inequalities Problems provide a natural tool for modeling electricity restructuring in a wide range of relevant situations. Besides being a convenient modeling tool, variational inequalities can also be used as an analytical instrument for assessing properties of different restructuring models. Last but not least, variational inequality models lend themselves to computation and hence to quantitative evaluations