A Synergistic Model of Electricity Market Based on Complex System Engineering Theory

Electricity market operation involves complex and cooperative technical and economic links among its subsystems, the nonlinear interaction within the subsystems should be taken into account to depict the operational state. Based on principles of Synergy theory, a branch of complex system engineering theory, a synergistic evolutionary model of electricity market was established. Data processing showed that HHI and settlement price were the order parameters and correlation dimension found that there were at least two critical factors maintaining the market. Thus, the two order parameters could be used to describe the electricity market. The model showed high precision, revealed the dynamic relationship between its subsystems and laid a foundation for further study of the market operation.