Nash Equilibrium Analysis of Electric Power Supply Chain with Fuel Supplier

From the perspective of entire supply chain of electric power with fuel supply, power generation, transmission and consumption, how to operate and coordinate the power enterprises is an important research topic. Coupling the optimal decision-making of chain members, including fuel suppliers, power generators, power suppliers or customers and independent system operator, the Nash equilibrium model of electric power supply chain is proposed with satisfying the constraints of power network. This model is a multi-layer optimization model, whose KKT system is a mixed nonlinear complementarity problem. By using the nonlinear complementarity function to reformulate the KKT system into a set of algebraic equations, the Nash equilibrium of electric power supply chain is solved simply and fast. Finally, corresponding to different operational conditions of power network, the Nash Equilibrium of electric power supply chain is analyzed. It is indicated that the fuel suppliers and power generators are favorable to joint decision-making for obtaining more profits.