Analysis of Wind Power Enterprise Behavior in Electricity Market

Abstract

With the advent of renewable energy, the electricity market needs to be reassessed and adjusted to maintain market fairness and stability. The starkelberg game model is established in which wind power enterprises act as leaders, their output is the profit-maximizing yield which constrained by the response function of the manufacturer (market operator). Taking other constraints into consideration, a multi-objective optimization model is established to find the starkelberg equilibrium strategy. Keep the system in equilibrium, in order to make better use of renewable energy, market operators change rules and state: increase the elasticity of demand, expanding market capacity, giving new energy subsidies. And wind power delivery deviations are punished by floating fine, companies take measure in advance in response to punish. The results show that under the condition of market equilibrium wind power enterprises can gain more profits than traditional model.