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By John G. Webster (Editor)

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A new approach for unit commitment with game theory in a deregulated power marketplace may be used by GENCOs to schedule generating units. They will take into account the availability and capability of transmission lines given by TRANSCO to ISO. This approach is demonstrated in the next section (16–22). GENERATION SCHEDULING FOR ELECTRICITY PRICING IN A DEREGULATED POWER MARKET The unit commitment problem is to determine which units in a GENCO should be on-line at a given hour in the deregulated power marketplace.

In a game with complete information, players (GENCOs) have full information about the generation cost functions of others. In a game with incomplete information, players (GENCOs) have partial information on opponents’ generation cost functions. The incomplete information game is considered by modeling the player’s unknown characteristics as the player’s type. , the player’s payoff function, beliefs about other player’s payoff functions, beliefs about what other players believe his beliefs are, fuel prices, and availability of transmission lines).

Conversely, it can combine small demands of various DISCOs and, after consolidating, buy in bulk from a GENCO. Because all the deals are market-based, there is an entity known as the ISO (Independent System Operator) in charge of the operations of the grid. The ISO takes care of deals that are finalized and can, in fact, be allowed to go through the system without having any abnormal effects on the grid (17–22). Competition and Market Structures Advances in technology are making competition an increasingly attractive alternative to traditional regulation of the electricity.

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48.Power Systems by John G. Webster (Editor)

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