Research On Power Market Stability Considering Forward Contract

Power market makes resources optimally allocating by market mechanism, in which the stability analysis is significant for regulating the supply and demand of power market. The restructuring and deregulation of power market brings risks to market participants that they have not faced during the regulated ear, and forward contracts can be used as an effective instrument for risk management and bilateral transaction. In this paper, an effort is made to develop risk-constrained optimal bidding strategies for generation companies in a day-ahead electricity market in which CFD (contracts for differences) is enforced, under the assumption that each generation company is required to bid a stepwise line or a linear supply function and the uniform market clearing price is employed. A dynamic Cournot model for Zhejiang power market is established. Then a stability analysis of this simple model is proposed, and the impacts of CFD on the power market stability are studied.