Theory And Demonstration Research About Strategic Bidding Of Power Plants In Power Market

This paper study several important problems about competition mechanism in power market. research methods adopted is to analyze mutual competitive behaviors between power plants by applying game theory and to analyze and calculate market balance points of different market conditions. the paper adopts provision function competition model to study two-knots power transmission system and four-knots power transmission system and obtains several different research results from traditional economics theory. For the two-knots power transmission system with power transmission capacity restriction,incomplete competition between producers really increase profits of power plants,but it does not change apparently electricity price and power consumption of consumers. The reason is that profit increment of power merchants comes from fees of power transmission right owner. For the four-knots power transfer system,it is found by the paper that decreasing market concentration degree will reduce market efficiency( although the cost will not be influenced). The paper research manifests that the result by strategic bidding behavior in power market might differs from the result by applying traditional economics theory.