Group Alliance Bidding Strategy

Our country is carrying on the socialist economy organizational reform. The electric power industry is the basis for other industries. It must realize the fast development of electric power, and must promote the market reform. The situation is complex. And the duty is also arduous.Under the competitive electric power market condition, the unceasing price competition will lead to the price dropping down. But the price reducing causes the production cost relatively higher. Then contractor will reduce the production cost to guarantee the profit, but this will make the quality of power supply service quite low. In order to improve the electrical energy quality, reduce the electricity generation cost, and guarantee the income of power plants, the concept of group alliance bidding strategy is put forward in this article. Several power plants form the group alliance (for instance, several power plants belong to a same electricity generation group) to carry on the bidding. The obtained total income will be assigned again between them according to a certain assignment rule. Thus, each power plant income will be bigger than the obtained income when they bid it alone.This article first proposed the evaluation method of market power of electricity generation groups and summarized the actions of forming the core competitive power. This method used three kinds of market power indices, the static HHI index, the MMR index, the Lerner index to evaluate the market power of electricity generation groups. And take the Shanghai electric power limited stock company as an example to discuss its power market condition.Some basic concepts commonly used of the bidding cooperation are introduced in this article. The bidding model determining the MCP...