Studies On The Trading Mechanism Of Electricity Market Based On The Simulation Approach

China has launched a marketization reform of power industry, but, it’s still at thebeginning stage. Therefore, it’s necessary to further study and revise the market mechanismand regulatory system of electricity markets. The complicated correlations and interactions ofmarket participants under electricity markets can be modeled with game theory, unfortunately,the practical electricity markets are always too complex to conveniently modeled usingstandard game theoretic techniques. Especially the market participants observe the marketrepeatedly and adjust their strategies continuously according to the market situations, whichadds the complexity of the problem and makes the normal methods difficult to analyzeelectricity markets. Agent-based computational economics (ACE) and experimentaleconomics extend the traditional game theoretic approaches and provide new methods forelectricity market analysis.After analyzing the success and failure of market operation experience home and abroad,it’s really a risk for the grid companies to construct power market at present. Consequently, inorder to avoid the risk at the stage of market mechanism designing and regulation making, it’snecessary to design and develop an integrated electricity market simulation system combinedwith the practical power grid. The simulation system also can be applied in studying andverifying the rationality of market mechanisms and regulations, analyzing the probable riskand supplying a technique support system for the market participants training before theformal operation of electricity market.In order to design and develop a electricity market integrated simulation system, thesimulation approaches of power market are studied deeply, some key issues are solved in anovel way, the main research work includes:1. RE learning algorithm which belong to reinforcement learning algorithm, are adaptiveand can find the optimal strategy of the dynamic system through experience obtained from thedirect interaction with its environment, the algorithm also has the quality of low requirementfor prior knowledge. The feature makes them well suitable for dealing with thedecision-making problems of power suppliers. Program module which help the agents makedecision based on RE learning algorithm, has been realized in the Electricity Market Integrated Simulation System. The experimental results show that these agent learningalgorithm are capable of making the agent simulate the economic characteristics of powersuppliers and can reflect the different bidding psychology of the power suppliers.2. With the development of large-scale wind power, the market design and ruls willchange, which gives the same incentives to wind power and traditional power suppliers. Themarket design should lower the social cost and set the end-user electricity fees reasonable.The article proposed several power market design modes with large-scale wind powerparticipating, and made the comparsion among these modes; the article also adopted MIPmethod to solve the unit commitment problem with large-scale wind power connected to thesystem, and proved the increasing of deviation of wind power forcasting would meanwhileincrease the trading cost in market.3. The article studied the market equilibrium in different load-price reactioncharacteristics in power market, and compared the effect on market equilibrium underuniform price auction and discriminatory price auction modes respectively. The resultsrepresented the importance of the participating of interrupted load an demand side in powermarket.4. The integral architecture design and function modules design of Electricity MarketIntegrated Simulation System are described. The simulation system has such functions asfollows: setting kinds of experiment schemes and experiment parameters; recording andanalyzing experiment results; supply three kinds of simulation methods which includesimulation based on human bidding, agent-based simulation and combination of agent-basedand human method, which is proposed for the first time in the market simulation systemresearch home and abroad. Then simulation experiment organizing and experiment resultsanalyzing methods are proposed, and the simulation system is applied to analysis a testingsystem market and a certain practical regional power market.