Game Analysis On Bidding Models Of Electricity Market

At the end of 2002, the State Power Corporation put "separation of plants frompower grid"into operation and newly established five generating groups and twoelectric grid corporations, which laid a solid foundation for "competitive bidding inelectricity supply", a key step for the reform of Chinese power market. In the processof "competitive bidding in electricity supply", every generating corporation hopes tomaximize its profit while electric grid corporations wish to minimize the electricitypurchase fees. During the course of building power market, it is very important to findan effective and reasonable bidding model, which will not only motivate thegenerating enterprises to strengthen management and improve the efficiency,consequently decreasing the electricity price, but also bring the market risk and steadytransition into consideration. The author makes a deep study and analysis on two experimental bidding models(differential price contract model and limited bidding model ), discovering theessential difference of two bidding models resulting from the proceeds settlementdifference that is generated by the fact that the bidding electricity energy is smallerthan the contract electricity energy. Relevant parts of Game Theory, Microeconomicsand Power Market Theory are used to analyze the gaming behaviors of the generatingcorporations and electric grid corporations when facing the two bidding models in thegeneration-oriented market. On the assumption that the bidding of generatingenterprises is a perfect information game model, the author analyzes the equilibriumof one-stage game and repeated game. The necessary condition for the corporation ofgenerating enterprises is discussed in the analysis of repeated game, which offers anidea on how to prevent the generating enterprises from conspiring when designing thebidding rules. Based on perfect information and static game, the output game modelwith many generating enterprises as actors is established and a mathematical explainis given. Grounded on the comprehensive comparison of two bidding models, theauthor brings forward the opinion that the choice of bidding models could be affectedby the structure of power sources in a certain territorialpower grid. The author aims to present theories for deregulating the electricity market,hoping to further understand the reform of Chinese power industry by the theoretical IIstudy of bidding models...