Research on mechanism of price adjusting and simulation in unilateral electricity market

At present, the electricity market of China is a unilateral market excluding retail market. This kind of market with fixed load demand is imperfect. The power companies may use the market power to manipulate the market price and earn more profits. However, the exorbitant price of the generation market may lead to the bankruptcy of power companies and the breakdown of the whole electricity market. Based on the theory of social welfare of economics, a price control model is proposed to apply to this unilateral electricity market to control the electricity price, and insure the stable and highly efficiently running of the electricity market. In order to prove the effectiveness of the proposed model, an artificial intelligence method is adopted to simulate the operation of the market based on the evolutionary game and cooperative co-evolutionary algorithm. The simulation results show that the proposed price control model is effective.