Research on Generation Side Strategy and User Side Cost Based on Equilibrium Analysis under Reliability Option Mechanism

• DOI: 10.36227/techrxiv.21113878
• Publication Date: 2022-09-20T18:52:01Z
• Authors: Yuanhao Feng; Donghan Feng; Yun Zhou
• Keywords: Linearization; Market clearing; Investment; Market mechanism

<p>Reliability option (RO) is a generation capacity adequacy mechanism based on concept in financial products. Recent studies RO lack the consideration of game between power producers. In this paper, market equilibrium under studied and bilevel model proposed. The upper-level models are maximizing profits producers lower-level clearing. Electricity sales income, fee income expenditure including fuel cost, expansion investment refund cost penalty considered to evaluate each producer's profit. reformulated into mathematical problem with constraints (MPEC) series linearization methods used. obtained by diagonalization iteration for all MPECs. Then, some cases set analyze comprehensive purchasing users state. Finally, suggestions construction given.</p>