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Designing an Incentive Contract Menu for Sustaining the Electricity Market

Author

Listed:
  • Ying Yu

    (School of Mechatronics Engineering and Automation, Shanghai University, Shanghai 200072, China)

  • Tongdan Jin

    (Ingram School of Engineering, Texas State University, San Marcos, TX 78666, USA)

  • Chunjie Zhong

    (School of Mechatronics Engineering and Automation, Shanghai University, Shanghai 200072, China)

Abstract

This paper designs an incentive contract menu to achieve long-term stability for electricity prices in a day-ahead electricity market. A bi-level Stackelberg game model is proposed to search for the optimal incentive mechanism under a one-leader and multi-followers gaming framework. A multi-agent simulation platform was developed to investigate the effectiveness of the incentive mechanism using an independent system operator (ISO) and multiple power generating companies (GenCos). Further, a Q-learning approach was implemented to analyze and assess the response of GenCos to the incentive menu. Numerical examples are provided to demonstrate the effectiveness of the incentive contract.

Suggested Citation

  • Ying Yu & Tongdan Jin & Chunjie Zhong, 2015. "Designing an Incentive Contract Menu for Sustaining the Electricity Market," Energies, MDPI, vol. 8(12), pages 1-22, December.
    • Handle: RePEc:gam:jeners:v:8:y:2015:i:12:p:12419-14218:d:60707
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    References listed on IDEAS

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    Cited by:

    1. Chen Zhang & Wei Yan, 2019. "Spot Market Mechanism Design for the Electricity Market in China Considering the Impact of a Contract Market," Energies, MDPI, vol. 12(6), pages 1-23, March.
    2. Kaijun Lin & Junyong Wu & Di Liu & Dezhi Li & Taorong Gong, 2018. "Energy Management of Combined Cooling, Heating and Power Micro Energy Grid Based on Leader-Follower Game Theory," Energies, MDPI, vol. 11(3), pages 1-21, March.
    3. Xuguang Yu & Gang Li & Chuntian Cheng & Yongjun Sun & Ran Chen, 2019. "Research and Application of Continuous Bidirectional Trading Mechanism in Yunnan Electricity Market," Energies, MDPI, vol. 12(24), pages 1-18, December.
    4. Ying-Yi Hong, 2016. "Electric Power Systems Research," Energies, MDPI, vol. 9(10), pages 1-4, October.

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