Perturbation Analysis Based Simulation Approach for Electricity Market Research and Investigation

The booming of renewable distributed generations challenges Power System Operators (SO) with operational and market aspects such as flexibility shortages, electricity price volatility, market liquidity risk, and even operation failures. Many SO released public market data, which prepare market players to investigate the procurement opportunities for advanced energy deployment, policies, and regulatory configurations. A further step for an SO to take is more meaningful to promote market efficiencies, We propose a Perturbation Analysis-based market player behavior modeling and simulation approach to effectively study the impacts of strategic behaviors on the electricity market efficiency. A supervisory controller style electricity market simulation architecture is designed to observe, predict and control behaviors of the electricity market players, which makes the simulation process closed-loop. A case study shows the effectiveness of the proposed approach in investigating market players’ behaviors.