Research On Competition Equilibrium Thoery And Arithmetic Of Electric Power Market

It is the key problem in power system for electric power market, which is a production combining the operation rule of power system with economic theory and there is relation between universality and particularity. It is essential to the degree of regulated and competition, that strong regulation is performed by small competition and vice versa.It is fuzzy to understand the basic principle of electric power market, whereas there is a large of researchers and the large numbers of literature are published due to the link between theory and practice is not closed. It is indicated there are many problems required to opening out.The equilibrium theory in microeconomics is a basic principle that must be submitted for all market included power market, and the decision-making is necessary for the power market because of particularities.Firstly, the Nash-equilibrium is analyzed with the Cournot and supplying function modeling in power market with a single commodity. Then, the existent conditions of local competition equilibrium are driven. It is indicated that unfair benefit distribution is induced by Nash-equilibrium due to the surplus is produced, and the competitive equilibrium is based on accounting cost pricing.The reactive power is the primary ancillary service, which pricing is usually made with active power pricing due to the power market is a typical more commodities market. Firstly, the conditions of Nash-equilibrium are analyzed for more commodities power market and the application of general equilibrium theory in power market is explained, which is based on accounting cost pricing.It is indicated that equal price principle is established on equilibrium theory by analyzing the competitive equilibrium of a single commodity ignoring the electric power network characteristics. The equal price principle is no appropriate for Nash-equilibrium and to consider the electric power network characteristics. The correct equal price method is induced in this paper, which is accorded with the competitive equilibrium and similar to the grads arithmetic.The failure of power market is defined in this paper, and it is indicated that monopoly, externality and incomplete information are primary factors led to power market failure. The regulation is necessary for restraining the failure in power market and the degree of regulation is determined by competitive equilibrium state.This paper summarizes the existed evaluation index on different aspects such as the market structure of the electricity market, the operation state of the electricity market and the market performance of the electricity market, studies the related economics theory and the SCP theory. Through principle study and example analysis, this paper constructs a logic frame to analyze the industry organization from its structure, conduct and performance. On the base of the SCP frame and combining with the equilibrium theory this paper establishes the macro evaluation index system for the performance evaluation of the electricity market, and also according to the evaluation indexes, this paper establishes the micro evaluation index system for the performance evaluation of the electricity market and quantifies the evaluation indexes.The case study is made at IEEE-30 system and the efficiency of correct equal price method is proved for a single commodity and more commodities power market.