Auction simulation of electricity markets based on coevolutionary approach

The Coevolutionary approach is applied to research of Genco bidding strategy and market behavior of Uniform Price and PAB auction mechanisms under different demand side response conditions with multi-capacity simultaneous auction model. The simulation results show that the convergence manners of market price under both mechanisms are different, the market price under Uniform Price mechanism is basically converged and exists a little fluctuation, market price under PAB mechanism exists obvious periodicity oscillation and is a little higher than Uniform Price mechanism, so the payment to generation companies is larger. At the aspect of bidding strategies, Gencos under both mechanisms all have the propensity to bid higher price deviating from cost, Gencos will take different bidding strategies under different auction mechanisms, there exists certain market power. Comparing with other methods, it´s found that the simulation results based on co-operative evolutionary approach could reflect some potential problems in electricity market.