Work

Modeling of Collusion Behavior in the Electrical Market Based on Deep Deterministic Policy Gradient

Year: 2024

Type: article

Abstract: The evolution of the electricity market has brought the issues of market equilibrium and collusion to the forefront of attention. This paper introduces the Deep Deterministic Policy Gradient (DDPG) algorithm on the IEEE three-bus electrical market model. Specifically, it simulates the behavior of market participants through reinforcement learning (DDPG), and Nash equilibrium and the collusive equilibrium of the power market are simulated by setting different reward functions. The results show that, compared with the Nash equilibrium, collusion equilibrium can increase the price of nodal marginal electricity and reduce total social welfare.

Source: Energies

DOI: 10.3390/en17225807

Authors: Yifeng Liu, Jingpin Chen, Meng Chen, Zhongshi He, Ye Guo, Chenghan Li

Institutions: State Grid Hubei Electric Power Co., Ltd. (China), Tsinghua Shenzhen International Graduate School, Tsinghua University

Language: English

Topic: Electric Power System Optimization

Subfield: Electrical and Electronic Engineering

Field: Engineering

Domain: Physical Sciences

SDG: Affordable and clean energy

Open Access status: gold

Estimated APC paid: $2,955