Generation Bidding Strategy based on Game Theory

Abstract

This paper presents a game theory application for analyzing power transaction in a deregulated energy market place such as poolco, where participants, especially, generating entities, maximize their net profit through optimal bidding strategies (i.e. bidding prices and bidding generations). In this paper by using game theory to simulate the decision making process for defining offered prices in a deregulated environment. The outcome of this study is to discourage unfair coalitions. A modified IEEE 30 bus system is used as a deregulated power pool to illustrate the main features of the proposed method.