Finding Multiple Equilibria for Raiffa–Kalai–Smorodinsky and Nash Bargaining Equilibria in Electricity Markets: A Bilateral Contract Model

In a deregulated market, energy can be exchanged like commodity and the market agents including generators, distributors, end consumers trade independently settling price, volume, supply terms. Bilateral contracts (BCs) have been applied to hedge against price volatility in electricity spot market. This work introduces model find all solutions for equilibria implementing Raiffa–Kalai–Smorodinski (RKS) Nash Bargaining Solution (NBS) approaches an based on BCs. It is creating “holes” around existing equilibrium within feasibility set, yielding new (smaller) set at each iteration. research has two players: generation company (GC) supplier (ESC), aiming achieve highest profit of them. The results present possible RKS NBS, addition showing assigned energies case study different time frames. multiple allow ESC GC apply strategies knowing that they still optimal solution.