Research On Bidding Strategy Of Rotary Reserve Capacity Market Based On Conjectural Variations

The power industry allover the world has been undergoing massive changes to introduce competition, and as a kind of auxiliary service, reserve capacity market has been established. Reserve capacity market is akin to oligopoly market. A few producers raise market price via designed bidding strategy. The research on bidding strategy of reserve capacity market is an attractive issue. The main research work of this thesis includes a novel model of opportunity cost of rotary reserve capacity is developed, and a model to analysis optimal bidding strategies for electric power companies is discussed in the thesis, based on classic game theory. In the actual power market, information for electric power companies is incomplete. A model based on conjectural variation is proposed in the thesis, with an objective of profit maximization. According to the characteristic of actual power market, a new bidding approach based on conjectural variation improvement via dynamic learning is developed. Impacts of dynamic bidding strategy on market clearing price and social welfare are discussed in the thesis.