An analysis of game of electricity trade in electricity power market

Competition has been introduced into electricity power area by electricity industry, style of generating and transmitting electricity converts from vertical unity distribution to commercial exchange. In the game with power_generating corporation, power grid corporation should not only make its rivals to reduce generating cost to increase consumer surplus but also encourage them to raise electricity investment so that supply duty is insured, thus, setting up appropriate time of contract electricity is as important as establishment of electricity price. During which time, electricity power corporation should be able to recover its investment, also, the time should not be so long that present corporation can form market power by expanding manufacturing ability with the long-time tract; we set up a model of game of the regional market business transactions between power grid corporation and electricity power corporation and make an analysis; method of iteration is used to calculate appropriate contract time for investment recovering of Anshun and Tianshengqiao power stations. The Anshun station is building a new station and expanding its old one, while the later is building a new station. We have uses algorithms to calculate and examine the model of game.