Abstract
Rapid move to a market-based electric power industry will significantly alter the structure of electricity pricing and system operation, In this paper, we consider a negotiation game of electric utilities, IPPs and large-scale customers as players in electricity market. The two-level game strategies are adopted to analyze the negotiation process among utilities, IPPs and customers since recognized as a rational decision for competitive markets, where utilities, IPPs and customers intend to maximize their own profits. The derived operation rules reflecting the competition can be viewed as an extension of the conventional equal incremental cost method for the deregulated power system. The proposed approach has been applied to several systems to verify its effectiveness.
