Modeling and algorithm to find the economic equilibrium for pool-based electricity market with the changing generation mix

The generation mix is continuously varying all over the world and the electricity market equilibrium analysis in this new conditions is vital to the market designer, regulator, operator and participants. Therefore, this paper thoroughly investigates the impact of the changing generation mix on the market equilibrium based on the Cournot competition model. In order to improve the computation efficiency, a novel re-formulation approach is proposed to transform the multi-individual profit-maximization problems of the Cournot model into a single-level integrated optimization problem by introduction of the potential function. Taking advantage of this new technique, several scenarios, which respectively and collectively take the wind power, solar power, and energy storages into consideration, are computed and analyzed in detail. The numerical results validate the effectiveness of the proposed reformulation method and disclose the variation of the market price in condition of the different generation mix.