Dynamic Bidding Model and Analysis of Power Markets Involving Transmission Constraints and Bounded Constraints of Bidding Variables

This article presents a dynamic bidding model of power markets involving transmission constraints and bounded constraints of bidding variables. On the basis of the Nash equilibrium theory of power markets and the nonlinear complementarity method in optimization computations, the dynamic bidding model is composed of a difference dynamic system and semismooth equations. As examples with three buses and fine buses, numerical simulations analyze that under the different parameters of the market, the system will appear different operation states of transmission (i.e., congestion and non-congestion) and different Nash equilibriums. Furthermore, the local stability of bidding model at Nash equilibriums is investigated. The effect of the adjusting parameter in bidding model to the equilibrium points and the stability is also studied.