2003 IEEE PES General Meeting Call for Papers

We describe an adaptive game representation of a deregulated power market consisting of an independent system operator (ISO) and power generators (players) who submit their offers to the ISO in the form of curves. The power generators do not know the costs, the offers, or the payoffs of their competitors and, therefore, they use an adaptive learning tool to compensate for their lack of knowledge in trying to maximize their profit. The ISO purchases energy from the generators, starting from the more economical offer in order to cover the electricity demand. Sequential iteration of the game for different numbers of participants and with varied adaptation and reaction capabilities are conducted in order to study the impact on spot price convergence and volatility, and the corresponding cost for the ISO. After repeated runs of the simulation model, many interesting phenomenon have been observed regarding the spot price behavior and the stability of the market.