Generator Monopoly Rent

Units:	$
Mode:	Output Only
Multi-band:	False
Default Value:
Validation Rule:
Key Property:	No
Description:	Monopoly rent from competitive bidding
Detail:

Generator Monopoly Rent is the additional profit earned by the Generator due to the selected dynamic Mark-up/strategic bidding algorithm, and defined as:

Monopoly Rent = (Pool Revenue - Generation Cost) - (Shadow Pool Revenue - Shadow Generation Cost)

Generally this value would be positive, meaning that strategic bidding increased profits, but in some cases it can be negative e.g. if mark-ups are so high that volume is lost.

For Nash-Cournot a negative value can indicate that the simulated solution using the inelastic demand function (fixed level of demand) does not correspond to the equilibrium found against the linear demand curve used in this method.