| 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 |
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.
See also: