Finding equilibrium for oligopolistic electricity market using a coevolutionary approach

Linear supply function equilibrium (LSFE) model considering network constraints for oligopolistic electricity market is analyzed in this paper. In this market model, the ISO solves an optimal power flow to dispatch generation and determine spot prices, and participants will submit the bids to seek the maximum profit. A coevolutionary approach developed from agent-based simulation methods, which simulates the coevolutionary mechanism in nature, is used to calculate the Nash equilibrium. Several examples are used to show the effectiveness of the proposed method, simulation results show that the coevolutionary approach rapidly converges to pure strategy equilibrium if it exists. The approach is robust and flexible, and has the potential in the study of the complicated and real-world electricity markets.