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1402 ناتسمز - 42 هرامش ابرهک - رتویپماک و قرب یسدنهم یصصخت همانلصف

Determining the optimal strategy of production units

based on market power

Maryam Ramadanian Langroudi, Seyyed Maziar Mirhosseini Moghadam, Behnam Alizadeh
Department of Electrical Engineering, Lahijan Branch

ramezanianmaryam9@gmail.com
m.mirhosseini @liau.ac.ir
behnam_alizadeh@liau.ac.ir
Abstract:
In the electric energy market, price is the most important signal for all generating units (GenCos). Each GenCo seeks
a price offer that maximizes its profit. Therefore, in this article, a new educational algorithm based on the
intelligentization of GenCos pricing is presented in order to learn the optimal strategy of GenCos and reach the Nash
equilibrium point. In the meantime, the independent market operator (ISO) also establishes the balance by applying
network restrictions. In order to investigate the effect of the adopted strategy on the state of market competition, we
used the entropy coefficient index. The value of this index at the end of the work shows that GenCos have been able
to increase their profits and monopolize the market more in the state without considering the permitted range of
production and transmission compared to the state with the permitted range of production and transmission. The
simulation results show the effectiveness of the proposed learning algorithm. The studied network is taken from the
Nord Pool market.

Keywords:
Electricity market, pricing strategy, market power, payment based on price offer, Nash equilibrium

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