Research On Applications Of Game Theory In The Generation Side Of Power Market

In the last years, the electric power industry has experienced a reformation of deregulation to traditional monopoly and introduction of competition all over the world, so the theory and technology in power market becomes a very important research field. And research on applications of game theory in power market is also a worthwhile aspect. In this paper, game theory is introduced to study on bidding strategies of generation companies, analyze market power of generation companies and mitigate market power.In chapter 1, the meaning, characteristic and mode of power market are summarized, and the trading operation and algorithms of power market are discussed. Simultaneously, the applications of game theory in power market are briefly reviewed. And then the problems that would be researched in this paper are put forward.In chapter 2, a research on bidding strategies of generation companies is made. Firstly, game theory is briefly introduced and the mathematical model of generation bidding in pool mode is established. Then, the existing research results on generation bidding are discussed, which includes bidding strategies based on n-person and two-person game theory. In chapter 3, market power of generation companies is discussed. Market power in power market and assessment measures of market power are reviewed firstly. And then a bidding strategies model of generation companies is established based on Cournot model, and using infinite iteration game theory of complete information to analyze the behaviors of generation companies in bidding.In chapter 4, mitigation market power is discussed. This part presents many measures for mitigation the market power of generation companies, and uses game theory to analyze the impacts of Contracts for Difference and Price Cap on the bidding strategies of generation companies. In last chapter, the results of this paper research are summarized and the further work is presented.