Generation biding strategy based on game theory

Based on the actual situation of China´s power market, after comparing and analysis of different biding strategy, game theory was chosen as the theoretical foundation of generation biding strategy, and a few models of game theory´s application in power market has been presented in this paper, based on which the biding strategy model is established using a biding curve that only changes its slope. By introducing the concept of virtual competitor, the competition on power market has been turned into a double game problem. The optimal biding strategy can be achieved when the result of biding strategy model is brought into the cost-profit function.