Biding Strategy in Restructured Environment of PowerMarket Using Game Theory

In the restructured environment of electricity market, firstly thegenerating companies and the customers are looking for maximizing theirprofit and secondly independent system operator is looking for thestability of the power network and maximizing social welfare. In thispaper, a one way auction in the electricity market for the generatorcompanies is considered in both perfect and imperfect competition cases.A new model is provided to use the historical data of power market in thestate of competition with imperfect information in which two probabilityfunctions were simultaneously used for the estimation of requiredinformation about each generator company. Nash equilibrium in thegame theory is used to find the stability point in the biding strategy ofgenerator companies. The effect of network conditions like limitation oftransmission lines, network load, maximum generation of each generatorcompany and the imperfect estimation of information about othercompetitors on the profit of generator companies and also on the marketpower of the generators in two mentioned competition methods wereshown in the numerical simulation.

Keywords:

Power Market , Game theory , Bidding Strategy , Perfect Information , Imperfect Information