Determination of the Percentage of Participation of Free Users in the Peruvian Wholesale Electricity Market through an Multi-objective Optimization Model Based on Game Theory

Due to the evolution of the Wholesale Electricity Market that has arisen in Peru since the 1992 reform to the present, it has been demonstrated that the participation of the demand, and especially the Free Users, is a relevant factor that influences on the operation cost of the national electric system. It is for this reason that its regulatory process must be carried out through an optimization process that provides a market signal that leads to the economic benefit of the country. For these purposes, a methodology has been designed that calculates the percentage of participation of free users in the Wholesale Electricity Market, based on a Multi-objective Optimization Process, solved through the Nash Negotiation Model. With the results obtained, the entities competent to the regulatory and regulatory framework will have a quantitative tool to determine the degree of participation of Free Users in the Wholesale Electricity Market.