Game Learning Research On Bidding Strategy Of Power Suppliers In Electricity Market

In the last years, the electric power industry has experienced a reformation of deregulation to traditional monopoly and introduction of competition all over the world, so the theory and technology in power market becomes a very important research field. And research on applications of game theory in power market is also a worthwhile aspect. In this paper, game theory is introduced to study on bidding strategies of generation companies, analyze market power of generation companies and mitigate market power.At first the paper describes the definition and character of the power market, and the way of exchange and development pattern in detail. Development history and actuality of power market of abroad and country are introduced. In chapter two the game theory is referred especially research achievement of the practice in generator's bidding. On the base of that, the content and value of the paper is made out. Then the Cournot adjustment and fictitious play are reviewed detailed and brought forward a new learning method: Price-Deviation-Adjust. At last the IEEE30 cost parameter (six generators) was adopted as experiment case. Based on Cournot adjustment, fictitious play and Price-Deviation-Adjust the paper discuss the way of generator's bidding strategy. At the same time show the evolution of market clearing price. Then the research of generator's strategy and profit is made. The contrast between Cournot adjustment and fictitious play model is found. The difference about equilibrium price, process of price adjustment and trend of the generator to withhold capacity is very large. At the same time the influence of price adjustment process on the market is discussed, in which situation the price sequences fluctuate. But above that is discussed in peculiar literature. In the experiment based on Price-Deviation-Adjust the profit of generator increase surprisingly because of their mistake. Then we get some conclusion: in the power market close to oligarch monopoly the generator will get excess profit if it bid on higher price rather than marginal cost which will lead unsteadiness of the market. And the conclusion is helpful to keep away the risk of the market.