Study On Generation Company's Market Power In Regional Electricity Market

Since the regional electricity market has just been established in China, the relevant trading rules is far from being mature, and some significant issues has exposed, especially the abuse of market power which directly affects the normal development of the regional electricity market. Therefore, starting with a study of generation company's market power, the purpose of this paper is to summary practical evaluation index of market power and some reasonable preventive measures, which has a very important theoretical research value and practical significance for the development of the electricity market. This paper, to central China electricity market as an example, presents a preliminary study on the regional generation company's market power.On basis of the existing definition of the market power, a more precise formulation for the market power of the electricity market is presented. According to the principle of generation companies to maximize their profits, three main factors in generation company's market power, which is pattern of market organization, settle methods of market and fines, policies of market, is intensively studied on. Then, a brief introduction to electricity grid characteristics, and the infection of market power with different scales was given.With fuzzy set theory, the comprehensive evaluation on central China electricity market produces an objective conclusion. The discussion focuses on the behavior of the generation companies with different settle methods, MCP or PAB. Then, it comes to a conclusion that the impact on the electrovalence with PAB is less than that with MCP, when the generation companies use their market power in central China electricity market.Based on further analysis of the market power behavior in the settle method of PCB, four piece of advice was promoted to restrain the market power: forecast the electricity price; formulate a reasonable ratio between the contract electricity and the bidding electricity; regulate the quoted price of the generation companies; adopt economic incentives to curb high bidding. The actual simulation indicated that the above four methods can restrain the market power effectively in regional electricity market.