| Title |
Optimal Bidding Strategy of Competitive Generators Under Price Based Pool |
| Authors |
강동주(Kang, Dong-Joo) ; 허진(Hur, Jin) ; 문영환(Moon, Young-Hwan) ; 정구형(Chung, Koo-Hyung) ; 김발호(Kim, Bal-Ho) |
| Keywords |
bidding game ; optimal strategy ; PBP market ; cost/price function ; hash equilibrium |
| Abstract |
The restructuring of power industry is still going on all over the world for last several decades. Many kinds of restructuring model have been studied, proposed, and applied. Among those models, power pool is more popular than other. This paper assumes the power pool market structure having competitive generation sector, and a new method is presented to build a bidding strategy in that market. The utilities participating in the market have the perfect information of their cost and price functions, but they don't know which strategy to be chosen by others. To define one's strategy as a vector, we make utility's cost/price functions into discrete step functions. An utility knows only his own strategy, so he estimates the other's cost/price functions into discrete step functions. An utility knows only his own strategy, so he estimates the other's strategy using Nash equilibrium or stochastic methods. And he also has to forecast the system demand. According to this forecasting result, his payoffs can be changed. Considering these all conditions, we formulate a bidding game problem and apply noncooperative game theory to that problem for the optimal strategy or solution. Some restrictive assumption are added for simplification of solving process. A numerical example is given in Case Study to show essential features and concrete results of this approach. |