The Transactions of The Korean Institute of Electrical Engineers (전기학회논문지)

The Korean Institute of Electrical Engineers (대한전기학회)
권호 표지

The Estimation of Incomplete Information in Electricity Markets by Using Load Pattern Changes

부하패턴을 이용한 전력시장 정보의 불완비성 추정에 관한 연구

  • Published : 2007.05.01
Download PDF
⟨ Previous Next ⟩

Abstract

This paper presents a methodology of estimating incomplete information in electricity markets for analyzing the gaming behavior of Generating Companies (GENCOs). Each GENCO needs to model its opponents' unknown information of strategic biddings and cost functions. In electricity markets with complete information, each GENCO knows its rivals' payoff functions and tries to maximize its own profit at Nash equilibriurnl Nli) by acknowledging the rivals' cost function. On the other hand, in the incomplete information markets, each GENCO lacks information about its rivals. Load patterns can change continuously due to many factors such as weather, price, contingency, etc. In this paper, we propose the method of the estimation of the opponents' cost function using market price, transaction quantities. and customer load patterns. A numerical example with two GENCOs is illustrated to show the basic idea and effectiveness of the proposed methodology.

Keywords

References

  1. 한국전력거래소, 전력시장운영규칙, http://www.kpx.or.kr
  2. J. H. Shin and K. H. Lee, 'Analysis on Incomplete Information in an Electricity Market using Game Theory,' KIEE Trans. vol. 55A, no. 5, pp. 214-219, May. 2006
  3. D. Fudenberg and J. Tirole, Game theory, MIT Press, 1991
  4. Y. Zhang, J. Fand, F. Hu, S. Chen and Y. Ni, 'Analysis of the Network Constraints' Effects on Strategic Behavior in an Incomplete Information Environment,' International Conference on, Power System Technology, vol. 1, pp. 428-432, Oct. 2002 https://doi.org/10.1109/ICPST.2002.1053579
  5. R. Rerrero, J. Rivera and M. Shahidehpour, 'Applications of Games with Incomplete Information for Pricing Electricity in Deregulated Power Pools,' IEEE trans. on Power System, vol. 13, no. 1. pp. 184-189, Feb. 1998 https://doi.org/10.1109/59.651634
  6. P. D. Klemperer and M. A. Meyer, 'Supply Function Equilibria in Oligopoly Under Uncertainty,' Econometrica, vol. 57, no. 6, pp. 1243-1277, Nov. 1989 https://doi.org/10.2307/1913707
  7. S. Stoft, 'Using Game Theory to Study Market Power in Simple Networks,' IEEE Tutorial on Game Theory in Electric Power Market, IEEE Press TP=136-0, pp. 33-40, 1990
  8. D. J. Kang, J. Hur, T. H. Kim, Y. H. Moon, K. D. Lee, K. H. Chung and B. H. Kim, 'The Method for Inverse Demand Curve of Cournot Model in Electricity Market,' KIEE Trans. vol. 54A, no. 2, pp. 70-87, Feb. 2005
  9. H. Niu and Ross Baldick, 'Supply Function Equilibrium Bidding Strategies with Fixed Forward Contracts,' IEEE trans. on Power System, vol. 20, no. 5, pp. 1859-1867, Nov. 2005 https://doi.org/10.1109/TPWRS.2005.857272