In consideration of the inadequate theory of electricity market, the lack of common market arrangement for the reformation of electric industry and the competition as the main trend, this paper explores the different bidding strategies and risk avoidances emerging or being going to appear in the deregulated environment of Chinese electric utility industry. This paper describes the cost analysis and profit & loss analysis, based on the bidding theory of generation companies (GENCOS) ;By probing the data obtained from the Shongdong grid, This paper presents some significant conclusions of system marginal price(MCP),which is useful to forecast the price and becomes the reason to establish the maximum profit model; This paper also calculates the optimal amount of electricity of each single generator during 48 periods of time as well as the best supplying amount of electricity in a contract.
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