Hi Trevor, I think you are missing one important point. The output.co refers to "cleared offers", so output.co.P.prc contains, not the offer price, but the market clearing price. In the case of a uniform price auction, it will correspond to the lambda.
In response to your last question, *all* of the values of LAM_P correspond to the marginal unit. That is, each represents a location-specific (i.e. nodal) price. If there is no congestion or losses, the LAM_P will all be equal (uniform). You can think of LAM_P as "the cost at which a generator at this location would be marginal". With losses and congestion, you can have multiple marginal units at different prices depending on their location. -- Ray Zimmerman Senior Research Associate B30 Warren Hall, Cornell University, Ithaca, NY 14853 phone: (607) 255-9645 On Jul 15, 2013, at 9:55 AM, "Hardy, Trevor" <[email protected]> wrote: > The printed results from the smartmarket module produces an output that shows > the revenue, costs, and net profit from the operation of the generators for > that hour. I have found that when I calculate the review using the formulas > below, I get value that match the smartmarket results. > > gen_revenue = sum(output.co.P.prc .* output.co.P.qty,2); > > In thinking about this more, though, it seems this would only be the case if > the generators were paid what they bid. I’m running the market with uniform > pricing set by the last marginal unit which I take to mean that all accepted > generation is paid the same rate regardless of their offer price. > > My questions: > > 1 – Is my understanding of uniform pricing in this context correct? > 2 – If my understanding is correct, it seems like the smartmarket prices are > not being correctly calculated in the printed summary; is this true? It > seems the revenue for each generator should be something like: > > gen_revenue = sum(marginal_lambda * output.co.P.qty,2); > where marginal_lambda is the price offered/bid by the marginal unit. > > 3 – If this new revenue equation is correct for markets with uniform pricing, > how do I determine which of the values of LAM_P in the results are for the > marginal unit? Is it the highest value? > > > Trevor >
