Company Strategic

Units:	%
Mode:	Input Only
Multi-band:	False
Default Value:	100
Validation Rule:	Between 0 And 100
Key Property:	No
Description:	Percentage of company generation that acts strategically
Detail:

Company Strategic can be used to control the extent of participation by a Company in the automated gaming models (LRMC Recovery, Nash-Cournot, Shadow Pricing, and Residual Supply Analysis) when Financial Contract is not defined. Values of Strategic above zero and up to 100% are used to approximate the effect of contracts on gaming behaviour. Strategic = 0 will 'switch off' the Company from participation in these games i.e. their generator offers are then prepared on a short-run marginal cost basis.

The value is applied against the Shadow Generationi.e. the generation of the Company prior to calculation of mark-ups.

Example:

Company	Strategic	Units	Band	Timeslice
FIRM A	0	%	1
FIRM B	30	%	1
FIRM C	65	%	1	PEAK
FIRM C	25	%	1	OFF-PEAK

Here "FIRM A" will not participate in gaming (Strategic = 0), "FIRM B" has Strategic of 30% which implies that it has 70% contract cover on its Shadow Generation. "FIRM C" has a different level of strategic coverage by peak and off-peak periods.

This constraint will bind in many cases e.g. when the mark-ups for the company become large enough that the generation falls to the level of the Shadow Generation multiplied by the complement of the strategic factor (100% - Strategic) i.e. the non-strategic generating capacity.

Note that the simulator adjusts the reported Mark-up by the value of the shadow price on this binding constraint. The shadow price itself is reported as Strategic Shadow Price on the Company.