An analysis on the annual contract allocation algorithm in Chinese electricity market

To maintain smooth market transition, certain amount of annual energy contracts are allocated to energy suppliers in some Chinese electricity markets. From the viewpoint of cooperative game, an analysis on the contract allocation algorithm is presented. Unit net income is adopted to evaluate single buyer and generatorspsila utility, an analysis that under what condition single buyer and generators are willing to accept annual contract is conducted. A simulation analysis is done based on the historical data of some domestic electricity markets. The results indicate that the suggested mathematic model is reasonable and effective.