Benefit of customers competition on power market

In the power market of Iran, distributors company play the role of retailer, too. In recent years, these companies used Demand response programs (DRP) to don´t encounter with spot prices and congestion of their equipment during of the peak demand negotiate with large customer. But, they don´t pay attention to small consumers and make competition among large customers. In this paper, effect of customer participation in the power market and competition between them are considered. We supposed that, this competition will be done in a new market that independent form main market and each customer tries to establish a suitable bidding strategy to maximize its profit. Also, as regards many small customers are existing in the market, effect of set the limit on change of bidding strategy for customers are considered. For this purpose, we used game theory framework with a dynamic Nash Equilibrium (NE) and supply function equilibrium (SFE) model for modeling competitions among customers. A non-cooperative game with incomplete information, and a nine-bus IEEE test system is employed to illustrate the proposed method.