Study On Measuring And Preventing Market Power Of Generation Market

The marketing operation has been a main direction for electric power industry in the world. The monopoly industry has been broken down and the competition has been inducted to the generation market of China. The generation firms have been divided from grid corporation. The grid corporation has bought part of sales of the generation firms by competition and the generation market has been established preliminarily .In the preliminary period of electricity reform , the market power is very easy to arise from monopoly industry, even in the transitional phase of turning to competitive industry, which leads to low productivity, unreasonable resource configuration, and unfair distribution of social benefit. It becomes one of the hot issues and difficulties during the reform of electricity market.Basing on the actual situation of generation market in China, using electricity market theory, imperfect competition theory, game theory, fuzzy mathematics theory and regulation theory, this paper measures and prevents the market power of generation market with the multi-angle, and carries on relatively deep systematic research.At first,this paper analyzes the reason which causes the market power of generation market and the factors which influence the market power of generation market. The paper makes a conclusion that there are six main factors influence the market power which are transmission congestion, elasticity of demand, withholding of generators, market share , alliance of generators and decisive contract .Secondly, the paper summarizes the common methods which measure the market power of generation market. Because these methods have only considered on the influence of certain or several kinds of factors described above, but have omitted the influence of other factors, so it has caused the estimated result inaccurately. The fuzzy mathematics method of general evaluation and added learning method are used to establish a evaluation model on the market power of generation market under multi-factors, and makes a general fuzzy evaluation on market power of generation market. It uses the example of generation market to interpret the availability. In order to prevent the market power of generation market, this paper constructs the cournot model which takes into account the contract for differences and the sales of generators from other market, and constructs the price cap regulation model which bases on the illuminating method. Through the empirical analysis on preventing the market power of Z province, it proves the validity...