Analysis of the Bidding Strategy of Gas Units Considering the Involvement of Primary Energy Suppliers

The integration of gas-fired power plants into electricity markets is becoming increasingly prominent due to their flexibility and lower emissions. This paper examines the impact of preferential policies that provide certain gas-fired units with reduced fuel costs, with a particular focus on the electricity market in Guangdong province. These units, supported by subsidies or discounted fuel prices, play a crucial role in balancing supply and demand; however, they may also distort market signals and affect competition. Using a model-based analysis, this study investigates how these policies influence market prices, generation mix, and system reliability. By examining the dynamics between two types of gas, the paper highlights how gas-fired units with fuel cost advantages reshape the profitability and bidding strategies of standard units. The findings indicate that as more gas-fired units benefit from discounted fuel, the competitive landscape shifts, potentially jeopardizing market objectives while fostering collaboration between gas companies and power producers. The paper concludes by proposing strategic bidding approaches for gas-fired units and suggests future research directions to enhance coordination between power generation and gas suppliers, improve market design, and ensure long-term sustainability.