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Analysis on the Impact of Cooperation Between Independent Power Producer and the Grid Company in Day-Ahead Electricity Market

The cooperation between independent power producer (IPP) and the grid company (GC) in day-ahead bidding market are analyzed to identify its impact on different market agents. The profit models of market agents both with and without the cooperation of IPP and GC are constructed. Necessary conditions for cooperation with the consideration of maximum capacity constraint are derived, and then the impacts of their cooperation are analyzed to conduct corresponding conclusions. A numerical example is also provided to prove these conclusions.