Regulation mechanism design of minimum operating mode of cogeneration unit based on game theory

As generation management separating from power grid, some cogeneration units frequently misrepresented the minimum operating mode in order to maximize their benefit. It was put forward to reinforce the electric power regulation and design relevant principles of management according to economic theories. A mixed strategy model was set up considering the regulator and cogeneration unit as both sides of game, taking the base tactic that whether the regulator audit and the cogeneration unit misrepresent,. According to the Nash equilibrium of the model, four principles to suppress the misrepresenting of the cogeneration unit through aggravate punishment were proposed. The specific punishing function was designed to vary directly with the excess income, and to vary exponentially with penalty degree and information disclosure. Proved by the example, the designed principles of management could effectually suppress the misrepresenting of the cogeneration unit.