Design of the electricity market monitoring system

Abstract

Due to the extreme importance of the power system, the operation of the electricity market has drawn much concern. The introduction of the electricity market aims to improve the efficiency, but meanwhile has brought many new problems, which cannot be found in the traditional monopoly system. Especially, in the economy aspect, power system has to face market risk other than the physical security problem. To find proper measures for market realization and adjustment, the authority should examine them carefully before their implementation. An electricity market monitoring system, which on one hand provides the references for market participants making strategic decisions and on the other hand is able to evaluate the impacts of specific measures or market context variation, is presented in this paper to help the regulator make decisions on market policy and the market participants foresee the market evolution. The monitoring system consists of two units, one is the market simulator, which detailed models the interaction between the market players by game theory and multi-agent system; the other is price forecast, which interprets the market evolution by mathematical or artificial intelligence approaches to foresee the prices. The two units cooperatively build a monitoring system for predicting the future market scenarios in different respects. Results of the numerical examples applying the preliminary monitoring system are presented and illustrated.