| Title |
Pure Strategy Nash Equilibrium Under Transmission Congestion Using Power Transfer Distribution Factors in Electricity Market |
| DOI |
https://doi.org/10.5370/KIEE.2026.75.8.1739 |
| Keywords |
Pure Strategy Nash Equilibrium(PSNE); Mixed Strategy Nash Equilibrium(MSNE); Transmission Congestion; Power Transfer Distribution Factor(PTDF); Electricity market; Social welfare |
| Abstract |
This study proposes an incentive mechanism for nodal pricing to ensure that the Nash Equilibrium in electricity markets manifests as a pure strategy rather than a mixed strategy. Mixed strategies lead to various issues, including conceptual complexity, computational difficulties, and significant confusion in practical applications. In this research, the Power Transfer Distribution Factor (PTDF) is redefined to be independent of the slack bus. This new PTDF provides a more realistic quantification of the impact of generator nodes on congested lines. By incorporating this factor as an incentive into generation pricing, transmission congestion is effectively reduced. The study presents a case study demonstrating the transition from a mixed strategy to a pure strategy. Through a quantitative comparative analysis with existing research, the performance of the proposed method is validated in terms of social welfare. |