Study Of The Bidding Actions Of The Electric Power Generation Firms Under The Market Environment By Markov Process

This article discussed the bidding decision action of the electric power generation firms. It introduced Markov Process into the analysis of the participants'decision of the electricity market and illustrates the participants how to analyze by Markov Process under the physical market environment especially electricity demand and fuel cost. At first, the transfer probability matrix of the suppliers'electricity market share is estimated by means of multi-regression and the marker share of the suppliers is considered as the market state over a planning horizon, thus on the premise of the discrete demands and suppliers'strategies, we can calculate the decision probability through optimization. Next, on the base of forecasting the fuel cost of the power market with Markov Process in the future, the suppliers'strategy space is conjectured and the possible strategy behavior is analyzed according to the methods of expected profit maximization given the suppliers'reward matrix.