Interaction of Generation Companies in the Electricity Market of Russia

The paper considers mechanisms for organizing free trade in the electricity market, which are based on submitting bids of energy consumers and producers to the market operator. The research focuses on the models of market operation as a double sided auction where participants have different rights (price takers and active competitors). The authors discuss and compare possible strategies of generator behavior that lead to different equilibrium situations and correspond to Cournot model and the models of supply function equilibrium, and a perfectly competitive equilibrium. The mechanisms are tested on the basis of the Siberian electric power system, Russia.