The effect of payment method in Iran's electricity market on production efficiency in the framework of multy-agent models, Case Study: Khorasan Power Plants

The most prominent characteristics of the electricity market in our country are thepay as bid to market winners. However, in most countries, a uniform payment method is used to clearing the market.In this paper, the effect of these two methods on the productivity and efficiency of the power industry in the manufacturing sector is compared. For a closer look, the model is designed for three hours of low load, normal load, peak, and yearly. For this purpose, with the use of the Q-Learning method, which is a subset of multy-agent models, Iran's electricity market model with all its features and limited to Khorasan power plants is simulated in two different ways and efficiency is compared in two scenarios. The results indicate that a uniform payment method leads to the use of higher power plants to supply electricity. Therefore, in this way, the cost of electricity is lower than the pay as bid method.