A Model of Market Structure Design for Electricity Market and Its Empirical Research

Abstract

The market-oriented reform of the power industry is a global trend, and that of China is not an exception. Because of the complicated game relationship among various stakeholders or behavioral agents in the generation-side electricity market, it is very difficult to develop an empirical research on the market structure of the electricity industry with traditional methods. This paper develops a model of electricity market structure based on the Stackelberg game. And the optimal solution of the model is achieved. On the basis of actual situation of power industry in Chongqing, we apply the model and econometric methods to checkout whether Chongqing's electricity market of generation-side achieves its optimal balance or not, and then to predict the optimal scale of the market.