Application of Cooperation Game Theory in Reactive Power Market of Hydraulic-Power Plant

According to the regional characteristics of reactive power market, based on cooperation games theory, the paper constructed reactive power cooperation game model of power factory. Shapley method was adopted to solve the cooperation games model. Example was used to analyze the profit assignment of the power factory in view of different conditions, including full-coalition, non-coalition and partly-coalition. The application of the examples can explain that Nash equilibrium exists in the quotation strategy of the power factory and the suppliers may conspire to control the price. Under the auction mechanism of the market clearance price, the power factory has the motion of pursuit for the high price. The market force of power factory is obvious especially in the peak of power demand.