Suitable market mechanism is a precondition for stable operation of electricity market and also the primary issue of concern to the power trading center(PTC). Process simulation and analysis of the spread-back mechanism are carried out based on the experience and case of the spread-back mechanism in the actual monthly-centralized trading market from the standpoint of PTC. Firstly

after interpreting the rules of the spread-back mechanism

this paper applies a mixed Bertrand-Cournot equilibrium model to simulate the market in which several generation companies(GENCOs)participate. Secondly

considering the competition between GENCOs in the market

a multi-iterative method with two-dimension bidding strategy is proposed to solve the market equilibrium value. Finally

practical data obtained from monthly-centralized trade in Guangdong Province is analyzed and simulated in detail. The simulation results show that the method of the spread-back mechanism proposed is basically consistent with the actual transactions in Guangdong Province

and the analysis results can provide an effective reference for the design and further improvement of the other power markets in the future.