Hydrothermal power market simulating and the market power mitigation of hydropower plants

In order to assess the market power issues for the case of hydropower plants participating in the power market competition, this article proposes multi-stage stochastic dynamic programming model of system operation. In the dynamic programming model, the decision in each stage and each state is the equilibrium of multi-agent game and the equilibrium point is solved by iterative algorithm. Case studies show that, from the view of long-term operation, the price of hydropower plants decentralized dispatch is much higher and fluctuate more severally than the situation of system optimal dispatch. Meanwhile, taking bilateral contracts as market power mitigating measures and setting rational contract electricity and contract price can decrease the price level and control its fluctuation effectively.