Research On Generation-side Market Power In Regional Power Market

The marketing operation has been a main direction for electric power industry in the world and necessary method for sustainable development. The reform of electric power industry in the world aims to establish a matured and effective power market. However, market power is very easy to arise from monopoly industry even in the transitional phase of turning to competitive industry. The practice experiences of electric power industry reform have proved that the abusing of market power is an important factor of weakening the performance of electric power industry reform. At the same time, the abusing of market power is also an important factor which leads to low productivity, unreasonable resource configuration, loss of social welfare and unfair distribution of social benefit. Therefore, the research on market power, especially on regional power market and the measures to mitigate electric market power, has an extremely important effect to establish a normative and competitive power market. Aiming at the present situation that generators exercise market power by using the natural monopoly characteristics of the electric power industry and their advantages in the course of power market reform, this thesis firstly analyses the natural monopoly characteristics of the electric power industry after learning from the research results of market power regulation theory and practice experience in different countries; and some other problems such as the cause and the control of market power are discussed. This thesis puts an emphasis on the review of the research results in existence to the definition of market power, and points out that the power of blocking potential competitors into the market owned by the dominant generators should be attached enough importance.Then, this thesis studies how the dominant generators implement market power by the two ways of electricity withholding and block potential competitors into the market by constructing mathematic model using the qualitative, quantitative analyses and game theory. The research results show that the dominant generators have the incentive and ability to withhold electricity in the regional power market; and the dominant generators can block potential competitors into the market by using strategic quoting when the information is not symmetry between them.At last, this thesis puts forward some measures and suggestions such as establishing a moderate competitive and an effective customer side electric power...