This paper studies the production decisions of generation companies (GENCOs) which are fully engaged in oligopolistic electricity markets. The model presented is based upon the static equilibrium model solved sequentially in time. By decomposing the problem in time, each time-step is solved independently using a Cournot-like market model. The time dimension is divided into discrete, 1-h time-steps. The model also incorporates the effects of technical and temporal constraints such as time on/off and ramp up/down. Since GENCOs tend toward repetitive decision-making, they can more easily learn from the market. The concept of forward expectations and the lessons derived from the market are introduced, and several numerical examples are provided.
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