Network model of bilateral power markets based on complex networks

Y. Wu, J. Liu, F. Li, Z. Yan, L. Zhang

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

The bilateral power transaction (BPT) mode becomes a typical market organization with the restructuring of electric power industry, the proper model which could capture its characteristics is in urgent need. However, the model is lacking because of this market organization's complexity. As a promising approach to modeling complex systems, complex networks could provide a sound theoretical framework for developing proper simulation model. In this paper, a complex network model of the BPT market is proposed. In this model, price advantage mechanism is a precondition. Unlike other general commodity transactions, both of the financial layer and the physical layer are considered in the model. Through simulation analysis, the feasibility and validity of the model are verified. At same time, some typical statistical features of BPT network are identified. Namely, the degree distribution follows the power law, the clustering coefficient is low and the average path length is a bit long. Moreover, the topological stability of the BPT network is tested. The results show that the network displays a topological robustness to random market member's failures while it is fragile against deliberate attacks, and the network could resist cascading failure to some extent. These features are helpful for making decisions and risk management in BPT markets.
Original languageEnglish
Article number1450144
JournalInternational Journal of Modern Physics B
Volume28
Issue number22
DOIs
Publication statusPublished - 10 Sep 2014

Fingerprint

risk management
commodities
decision making
electric power
complex systems
attack
simulation
industries
acoustics
coefficients

Cite this

Network model of bilateral power markets based on complex networks. / Wu, Y.; Liu, J.; Li, F.; Yan, Z.; Zhang, L.

In: International Journal of Modern Physics B, Vol. 28, No. 22, 1450144, 10.09.2014.

Research output: Contribution to journalArticle

@article{5183806329084664a662dc3a298f90cf,
title = "Network model of bilateral power markets based on complex networks",
abstract = "The bilateral power transaction (BPT) mode becomes a typical market organization with the restructuring of electric power industry, the proper model which could capture its characteristics is in urgent need. However, the model is lacking because of this market organization's complexity. As a promising approach to modeling complex systems, complex networks could provide a sound theoretical framework for developing proper simulation model. In this paper, a complex network model of the BPT market is proposed. In this model, price advantage mechanism is a precondition. Unlike other general commodity transactions, both of the financial layer and the physical layer are considered in the model. Through simulation analysis, the feasibility and validity of the model are verified. At same time, some typical statistical features of BPT network are identified. Namely, the degree distribution follows the power law, the clustering coefficient is low and the average path length is a bit long. Moreover, the topological stability of the BPT network is tested. The results show that the network displays a topological robustness to random market member's failures while it is fragile against deliberate attacks, and the network could resist cascading failure to some extent. These features are helpful for making decisions and risk management in BPT markets.",
author = "Y. Wu and J. Liu and F. Li and Z. Yan and L. Zhang",
year = "2014",
month = "9",
day = "10",
doi = "10.1142/S0217979214501446",
language = "English",
volume = "28",
journal = "International Journal of Modern Physics B",
issn = "0217-9792",
publisher = "World Scientific Publishing Co. Pte Ltd",
number = "22",

}

TY - JOUR

T1 - Network model of bilateral power markets based on complex networks

AU - Wu, Y.

AU - Liu, J.

AU - Li, F.

AU - Yan, Z.

AU - Zhang, L.

PY - 2014/9/10

Y1 - 2014/9/10

N2 - The bilateral power transaction (BPT) mode becomes a typical market organization with the restructuring of electric power industry, the proper model which could capture its characteristics is in urgent need. However, the model is lacking because of this market organization's complexity. As a promising approach to modeling complex systems, complex networks could provide a sound theoretical framework for developing proper simulation model. In this paper, a complex network model of the BPT market is proposed. In this model, price advantage mechanism is a precondition. Unlike other general commodity transactions, both of the financial layer and the physical layer are considered in the model. Through simulation analysis, the feasibility and validity of the model are verified. At same time, some typical statistical features of BPT network are identified. Namely, the degree distribution follows the power law, the clustering coefficient is low and the average path length is a bit long. Moreover, the topological stability of the BPT network is tested. The results show that the network displays a topological robustness to random market member's failures while it is fragile against deliberate attacks, and the network could resist cascading failure to some extent. These features are helpful for making decisions and risk management in BPT markets.

AB - The bilateral power transaction (BPT) mode becomes a typical market organization with the restructuring of electric power industry, the proper model which could capture its characteristics is in urgent need. However, the model is lacking because of this market organization's complexity. As a promising approach to modeling complex systems, complex networks could provide a sound theoretical framework for developing proper simulation model. In this paper, a complex network model of the BPT market is proposed. In this model, price advantage mechanism is a precondition. Unlike other general commodity transactions, both of the financial layer and the physical layer are considered in the model. Through simulation analysis, the feasibility and validity of the model are verified. At same time, some typical statistical features of BPT network are identified. Namely, the degree distribution follows the power law, the clustering coefficient is low and the average path length is a bit long. Moreover, the topological stability of the BPT network is tested. The results show that the network displays a topological robustness to random market member's failures while it is fragile against deliberate attacks, and the network could resist cascading failure to some extent. These features are helpful for making decisions and risk management in BPT markets.

UR - http://www.scopus.com/inward/record.url?scp=84901732098&partnerID=8YFLogxK

UR - http://dx.doi.org/10.1142/S0217979214501446

U2 - 10.1142/S0217979214501446

DO - 10.1142/S0217979214501446

M3 - Article

VL - 28

JO - International Journal of Modern Physics B

JF - International Journal of Modern Physics B

SN - 0217-9792

IS - 22

M1 - 1450144

ER -