Power Generator's Bidding Strategies And Electricity Markets Model Analyses

The background of this paper is deregulation of electric power industry. Power Generator's cost characteristics and bidding strategies as well as spot market analysis are main issues of this paper. Cost composing of thermal power units and its average and marginal cost characteristics are analyzed firstly. According to the characteristic of oligopolistic competition in electricity market, bidding strategies are contrived adopting n-player no cooperation game theory. Bidding scheme following the second strategy is developed. Supply Function Equilibrium (SFE) model is an important tool for electricity market analysis, the model provided in this paper is based on Green's model with an amendent of adopting non-zero intercept marginal cost function. A case study is carried out focused on the relationship between power generators scale, demand elasticity and market clear price, system buying cost, power generators' profit.