The joint non-inferior Nash equilibrium analysis of electricity futures and spot market

Abstract

Nash equilibrium is an important decision-making result for all players in non-cooperation game, problems of cooperation and competition between power generation group in strategic futures contracts market and the spot market is investigated based on power transmission network constraints. We consider the Cournot game theoretic model to simulate competition between power generation groups, moreover, electricity futures and spot market of the joint non-inferior Nash equilibrium model is established. This model is a multi-layer optimization model. By using the nonlinear complementary function to reformulate the KKT system for the optimization problem, the non-inferior Nash equilibrium of power spot market is solved simply and fast. Corresponding to different operational conditions of power network, i.e., congestion and non-congestion, the non-inferior Nash equilibrium of electricity futures and spot market is analyzed and compared with different market parameters.