Open Access

ARTICLE

Research on the Effects of the Most Used Market Power Mitigation Mechanisms Considering Different Market Environments

by Yangsheng Sun¹, Zhihua Wang¹, Gaoqin Wang², Beibei Wang^3,*

1 State Grid Shanghai Municipal Electric Power Company, Shanghai, 200122, China
2 China Electric Power Research Institute Co., Ltd., Nanjing, 210003, China
3 Southeast University, Nanjing, 210096, China

* Corresponding Author: Beibei Wang. Email:

Energy Engineering 2022, 119(6), 2193-2210. https://doi.org/10.32604/ee.2022.020943

Received 21 December 2021; Accepted 24 March 2022; Issue published 14 September 2022

Abstract

The market power mitigation method of the supply-side has become one of the key points affecting the stability of the electricity spot market. Different mitigation mechanisms are used in the current mature electricity markets of the world. However, the same market power mitigation mechanism shows different effects in different market environments. Every market operator in the world needs the most efficient way to mitigate market power. Considering that there is no relevant literature discussing the market power effects of different mitigation methods in detail, the mitigation effects need to be discussed and further researched. So, we analyze the effects of the most utilized market power mitigation mechanisms while considering different market environments. Firstly, we establish a Nash-Stackelberg interactive game model to simulate the competitive strategies of power suppliers. Secondly, the different market power mitigation approaches are modeled. Then, a multi-agent system (MAS) genetic interior-point algorithm is proposed to solve the problem of suppliers. Finally, through the simulation analysis, the market power mitigation effects of different mechanisms while considering three operation states of the system in two market structures are all analyzed.

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Keywords

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