The Equilibrium Game Model Considering Regulation in Generation Power Market

Equilibrium is a key problem to electric power market, which is the interactional outcome of optimal behavior among government, Generation Company and consumers. Using the Stackelberg game for reference, this paper sets up two short- term game models from the views of generation company and government regulation; then the generation power investment model is developed to analyze long-term equilibrium of generation power market, and a numerical example is served for illustrating the long-term equilibrium strategic combination in generation power market. The analysis and its conclusion provides a theoretical frame for strategic combination of Generation Company in power bidding and capacity investment, and a new way to come into equilibrium regulation policy, short-term bidding and long- term investment, from the government viewpoint.