The Game-Theoretic Approach to Pricing in China's Semi-Deregulated Electricity Market

Abstract

In Chinas semi-deregulated electricity market, a game-theoretic model has been set between users and power suppliers in order to ensure the whole network voltage load curve stay smooth, as well as to make the suppliers profitable on the basis of the satisfaction of users in power utilization in daily lives. The foundation of the model is the definition of the price elasticity of demand and its characters in micro-economy. According to this model, a Bayesian Nash equilibrium has been put forward based on the demand price elasticity, which can not only smooth the whole network voltage load curve effectively through the reciprocal process between users and power suppliers, but also can optimize the profit of the power suppliers. The simulation results of the voltage load curves and price changes graphs show the effectiveness of modeling simulation.