# Strategic Bidding and Equilibria in Coupled Gas and Electricity Markets

arXiv: https://arxiv.org/abs/1607.04184 · HTML: https://mlsanity.com/paper/1607.04184/

## Key facts

- Cited by 2 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 14 Jul 2016.

## Built on by (most cited first, 2 of 2)

- [Multi-Agent Reinforcement Learning with Graph Convolutional Neural Networks for optimal Bidding Strategies of Generation Units in Electricity Markets](https://mlsanity.com/paper/2208.06242/) (2022)
- [Safe multi-agent deep reinforcement learning for joint bidding and maintenance scheduling of generation units](https://mlsanity.com/paper/2112.10459/) (2021)

## Abstract (arXiv)

The wide adoption of gas fired units and power-to-gas technology brings remarkable interdependency between natural gas and electricity infrastructures. This paper studies the equilibria of coupled gas and electricity energy markets driven by the strategic bidding behavior: each producer endeavours to maximizes its own profit subjecting to the market clearing outcome. The market equilibria is formulated as an equilibrium problem with equilibrium constraints (EPEC). A special diagonalization algorithm (DA) is devised, in which the unilateral equilibria of the gas or electricity market is found in the inner loop given the rival's strategy; the interaction of the two markets are tackled in the outer loop. Case studies on two test systems validates the proposed methodology.