EFFECT OF CUSTOMER PARTICIPATION ONPOWER MARKET

In the power market of Iran, distributors companyplay the role of retailer, too. In recent years, these companies usedDemand response programs (DRP) to do not encountering with spotprices and congestion of their equipment during of the peak demandnegotiate with large customer. But, they don't pay attention to smallconsumers and make competition among large customers.In this paper, effect of customer participation on power marketand competition between them are considered . we supposed that, thiscompetition will be done in a new market that independent form mainmarket and each customer tries to establish a suitable biddingstrategy to maximize its profit. Also, as regards many smallcustomers are existing in the market, effect of set the limit on changeof bidding strategy for customers are considered. For this purpose,we used game theory framework with a dynamic Nash Equilibrium(NE) and supply function equilibrium (SFE) model for modelingcompetitions among customers. A non-cooperative game withincomplete information, and a nine-bus IEEE test system is employedto illustrate the proposed method.

Keywords:

power market , customer competition , demandresponse programs , game theory , bidding strategy