Dynamic Expansion of Power Capacity under Competitive Uncertainty

Dynamic expansion of power capacity under competitive situation is a new topic that power market research faces. On which this thesis programs related discussion by means of Stochastic Dynamic Game Approach. Based on S-adapted open-loop information structure, this thesis frames a multi-stage model of dynamic power capacity expansion game under power demand stochastic uncertainty in the market, and then this thesis reaches a three-stage duopoly game equilibrium solution. Sensitivity analysis in this thesis signifies the correlation between added capacity and cost at each stage and the correlation between other participants´ initial capacity and uncertainty.