Generation Market Power In Electricity Market Research, And Market Optimization

Power markets over the world are undergoing reform step by step to enhance their competitiveness. Independent Power Producers (IPP) can maximize profits by strategy-based bidding. However, IPP can get excessive profits by using the market power they own. In this thesis, basic research on market power and optimization of power market is performed. The content is divided into different categories shown as follow:a) The reason why the market power forms in the power market and the effects the market power on the power market are analysed. Furthermore, comparison and analysis of several market power assessment indices are given.b) With the assumption of complete information, some models of generators' bidding strategy are developed using linear supply function equilibrium method. Furthermore, some numerical simulations are. given in this paper, which are used to demonstrate the effects of cost parameter, demand elasticity, the number of power generators on bidding strategy and on the market power index.c) The model of generators' competitive bidding strategies is developed in considering the existence of electricity forward contract markets. Furthermore, some numerical simulations and analysis on market power are given.d) The advantages of the blocking bidding model are presented by compared with the spotting bidding model. A new bidding model is based on the combination of the Broker trade model and the blocking bidding model.e) The concept and effects of futures are introduced. A new electricity trade mechanism and its formula are presented based on futures contracts.