A Market-Power-Controlled Spot Market Clearing Mechanism Based on Residual Supply Index

The market power has been a problematic issue in different countries. To deal with the problems of existing market-power control methods, such as the inaccuracy of accounted price and the probability of biased regulation, a novel spot market clearing mechanism is proposed. The proposed method has three main characteristics: no need for prior price accounting in advance, no change of market supply-demand situation, and appropriate and unchanged prospective revenue for all participants. The conjectured supply function and bi-level market game model are used to simulate the market equilibrium with the proposed mechanism. At last, a numerical example is given, based on a modified IEEE-30-node system to observe the market operation under different situations. The effectiveness and applicability of the proposed method have also been proven.