The Research On Bidding Mechanism In Regional Electricity Market Bases On Game Theory

A research on bidding mechanism of northeast electricity market is made by using game theory based on analysis of regional electricity market as a whole. The phenomenon that bidding strategy of generators is different under the two mechanisms of MCP bidding mechanism and the PAB bidding mechanism is analyzed by applying evolutionary game theory and a conclusion is drawn: The MCP bidding mechanism is better than the PAB bidding mechanism as far as the characteristics of bidding mechanism. In theory, the power generators bid at basic price under MCP bidding mechanism, but bid at two directions: basic price and high price under PAB bidding mechanism. According to the capacity price problems that come forth with the two price principles in electricity market, the viewpoint of"make capacity price with province"has been proposed and demonstrated. In fact, the bidding mechanism cannot operate very well because of market power in electricity market. So effective rules and regulation mechanisms should be made. Finally,the policy of setting price cap has been analyzed by using game theory and validated by a case. The conclusion that price cap can reduce the market power in electricity market be made.