The Electricity Producer And The Electricity Purchaser's Bidding Strategy In The Electricity Market

With the developing of the electricity industry'reform in market . It is more and more important for the electricity producers and the electricity purchasers in how to choose their bidding strategy .It means different profit and risk for them with the different bidding combination strategy . There have been some articles on the bidding combination strategy of the electricity purchasers and the electricity producers . And it has get some important development at the metrical methods of profit and risk . But there are still some aspect which need to ameliorate , for example , In the conventional literatures on measuring risk , the theory of Markowtiz in finance is used for reference. But the method that adopting Markowtiz's average value and variance has been doubted : variance is symmetrical about average income, this means the profit above average income is also considered to be risk . And it used Var or CVaR to measure to measure risk in recently literatures.; it uses the VaR and CVaR to evaluate the profit and risk in the normal articles , but they also have their shortage , such as ,VaR is not fit to the consistency axiom , and it lack sub-additive property too . So it can not be used to investment combination optimization , it is not sufficient for the measurement of the tail loss . Although CVaR has overcome the shortage with VaR . it still has itself shortage : it can not reflect the risk investors'attitude about risk .This article use expected profit to measure profit , at the same time , it measures the risk with the spectral measure and sets up the electricity producers and the electricity purchasers'bidding model . we used different risk spectral function to simulate in the example and got the corresponding results . we find the method of spectral measure can not only measure the risk when choosing some bidding strategy but also can reflect different risk investors'risk attitude well . At the same time the expected profit'fixation can also guarantee well the risk investor to gain definite profit . So it can provide a good profit-risk model for the electricity producer and the electricity purchaser .