A discussion on power market equilibrium and its failures

Market equilibrium and market failures are two opposite concepts. Because of the particularity of power network, in general, electricity market cannot operate at the intersection of the power supply curve and power demand curve and this phenomenon is the expression of market failure, i.e., electricity market cannot reach the equilibrium state under normal conditions. According to the principles in economics, there are two countermeasures for market failure, they are the coordination measure by tax revenues of government and that among the market members. Through the comparison of the two countermeasures a kind of coordination measure among the market members is put forward to make the electricity market reach its equilibrium state again.