Multi-participants trading mode in Cross-Border electricity Market: A non-cooperative game approach

Abstract

Cross-border electricity trade can promote the sustainable development of regional multi-country economies by alleviating the uneven distribution of global energy resources. Hence, designing a reasonable and effective mechanism contributes toward the development of cross-border electricity market. This study established a non-cooperative game model for cross-border electricity trading. Central to our approach is the analysis of multi-participants trading modes influenced by cross-border trading centers. The model distinctively incorporates trading rules and service fees, providing a realistic simulation framework. The results reveal a direct correlation between strategic scope and the dependency of trading strategies on electricity pricing set by trading centers. This research advances the theoretical understanding of game theory application in electricity markets and offers practical insights for policymakers and market operators, particularly in strategizing for price setting and managing cross-border transactions.

Keywords

• Electricity market
• Cross-border trading center
• Game theory
• Nash equilibrium
• Trading mode