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Power Market Equilibrium Analysis with Large-scale Hydropower System Under Uncertainty

With the rapid development of hydropower and electricity market deregulation, typical large-scale hydropower markets have formed in some countries and regions. Hydropower will participate in the market competition and have significant impacts on the market equilibrium. This paper proposed a stochastic equilibrium model to depict markets with large-scale hydropower system, with the cascaded hydropower constraints considered and the stochasticity of small hydropower stations formulated by scenario analysis. A day-ahead energy market equilibrium model is established and a real-time penalty scheme is introduced to regulate strategic behaviors of small hydropower stations. An agency mechanism which can ensure efficient deployment of hydropower resources in electricity market is proposed. An example is given to demonstrate the market equilibrium based on the above setting.