EVOLUTIONARY PROGRAMMING TO SIMULATE ELECTRICITY MARKET COMPETITION pp. 129-149
Authors: Daniele Menniti, Anna Pinnarelli, and Nicola Sorrentino, Dep. of Electric, Computer, and System Science, Univ. of Calabria, Italy
Abstract: The simulation of the electricity market participantís behaviour is important for producers and consumers to determine their bidding strategies and for regulating the market rules and for the regulators to evaluate the impact of the actual rules. In literature, for this aim a lot of papers suggest to use the well-known theory of non-cooperative games and the concept of Nash equilibrium. Unfortunately they cannot be applied in an easy way when a multi-players game has to be considered to simulate the operation of the electricity market. Then, in this chapter, the authors suggest using the new theory of evolutionary games and the concept of Near-Nash equilibrium to simulate the electricity market in the presence of more than two producers. In particular, an opportune genetic algorithm has been developed. From the results reported, it is clear that this algorithm can be usefully utilised.