A NOVEL FRAMEWORK FOR THE STUDY OF STRATEGIC BIDDING IMPACTS ON POWER MARKET STABILITY AND EQUILIBRIUM

摘要

In this paper a novel framework is proposed to study the stability and equilibrium of quantity bidding electricity markets. The repeated market bidding process is modeled as a close-loop system, where the market clearing price is the feedback signal and individual outputs are the decision variables. Based on the maximizing-profit principle in economics, a general dynamic adjustment rule is utilized, which is able to model various classical bidding strategies, such as perfect, Cournot, etc., and conjectural variation (CV) based competition. The system stability and equilibrium are then analyzed using control theory with bidding strategy impacts included. A proposition is introduced for the ease of market stability judgment. Computer test results support the analytical conclusions very well.