Game Analysis On Bidding Models Of Electricity Market

The State Power Corporation established SGCC, China Southern Power Grid and the five supremacies power generation groups at the year2002, and the separation of plant and network have been implemented officially at that time. It is also marked a historic step for market-oriented reform of the electric power industry system. With the development of process of electricity marketization in our country, it is imperative for the generator to bidding in the generation market. The way to maximize the revenue during bidding in the generation market is a lifelong goal for all of the generators. As power purchasers relatively, the grid companies aim at the minimization of the system operation cost and the power purchase cost constantly. The paper was to discuss the way of price bidding strategy to make generators’operating cost minimization and revenue maximization under the price bidding circumstances in the whole electricity market.First of all, the paper briefly analyzed the current situation of domestic and international electricity market, proposed the development trend of electricity market under the current electric power industry system, and drew forth the scientificity and necessity of the game theory analysis of price bidding strategy under electricity market circumstance for generators in the future. Secondly, the paper introduced the fundamental of game theory, and selected Nash Equilibrium as the basic theory to analyze the bidding strategy of the generators by combining the practical situation under perfect information static environment. Thirdly, the paper proposed the constraint conditionand objective function of the real-time prices calculation model, and completes the calculation of real-time prices by computing equipment of optimal electric system power flow. Original-primal dual interior point method should be selected in accordance with the particularity that there exist inequality constraints condition in real-time prices model, and the comparison of the characteristics of different optimal power flow calculation models. The characteristic of this method is that it could introduce slack variables into equality constraint; inequality constraints and objective function through build Lagrange functions, and equalize all of the constraint equations. The result from programming under IEEE-30Node Standard test system by MATLAB7.0and verifying current time nodal price shows that when calculating the real-time prices with original-primal dual interior point method, the difficulty of load flow calculation caused by inequality constraints in optimal power flow calculations could be simplified enormously. Thus it could get closer to the actual value of real-time nodal price. Meanwhile, the computational accuracy of real-time nodal price could be improved effectively. At the last part, the paper calculated the optimum load allocation and real-time nodal price under different bidding strategy of generators and formulates the pay benefits table. Through analyzing the generators’profit under different bidding strategy by Nash Equilibrium Theory, drew a conclusion of the optimal equilibrium solution of bidding strategy under perfect information static environment. What’s more, the analysis procedure provides the guidelines for generators in the optimum network bidding strategy to some extent.