scholarly journals Bidding strategy of power generation companies in the centralized electricity spot market

2020 ◽  
Vol 165 ◽  
pp. 06045
Author(s):  
Jinshan Han ◽  
Pengfei Li ◽  
Tingting Zhang ◽  
Lingxiang Wang ◽  
Dunnan Liu
Keyword(s):  
Power Generation ◽  
Power Market ◽  
Spot Market ◽  
Market Reform ◽  
Bidding Strategy ◽  
Spot Price ◽  
Price Fluctuations ◽  
Bidding Strategies ◽  
Risk Return ◽  
Electricity Spot Market

With the development of China’s power market reform, the spot market has gradually opened up. The spot market is characterized by volatility and uncertainty. Generators urgently need to manage spot market trading income and risks to avoid the risk of spot price fluctuations. This paper studies the bidding strategies of power generation companies in the concentrated spot market, proposes a risk-return coordination method based on the probability of winning bids and conducts case verification. The example shows that the method can assist the power generation companies to formulate bidding strategies.

scholarly journals Research on the Construction Path of Power Financial Market in China under the New Situation of Power Reform

2019 ◽  
Vol 25 ◽  
pp. 03009
Author(s):  
Menghua Fan ◽  
Haoyuan Qu
Keyword(s):  
Financial Market ◽  
Power Market ◽  
Spot Market ◽  
Financial Transaction ◽  
Financial Trading ◽  
Trading Market ◽  
Electricity Spot Market ◽  
Market Construction ◽  
New Situation

In China, with the deepening of power reform and construction of the electricity spot market, urgent and realistic demands have been put forward for the construction of power financial trading market. In this paper, based on the background of power market construction and current power financial transaction practice, the significance of introducing power financial transaction is analysed and the path for construction of power financial transaction market in China is proposed.

scholarly journals Combined Bidding Strategy of Multi-owner Cascaded Hydropower Stations in Day-Ahead Market

2018 ◽  
Vol 246 ◽  
pp. 02036 ◽  
Author(s):  
Ying Yang ◽  
Weibin Huang ◽  
Guangwen Ma ◽  
Shijun Chen ◽  
Gang Liu ◽  
...  
Keyword(s):  
Electricity Market ◽  
Power Market ◽  
Bidding Strategy ◽  
Competitive Advantages ◽  
Bidding Strategies ◽  
Cascade Hydropower Stations ◽  
The Game Theory ◽  
Optimal Bidding ◽  
Hydropower Stations ◽  
Operation Characteristics

Under the background of the electricity market reform, if the multi-owner cascade hydropower stations bid separately, the overall competitive advantages of river basin cannot be exerted, and the overall benefits cannot achieve the maximization. Based on the operation characteristics of cascade hydropower stations and the rule of competitive bidding, this paper established a bi-level optimal model for bidding game in day-ahead market, and used the Nash equilibrium principle of the game theory and genetic algorithm to solve this model, the optimal bidding strategies of the multi-owner cascade hydropower stations have been solved under the circumstances of bidding by oneself and alliance. The results from the calculating examples showed that the unified price declaration of the multi-owner cascade hydropower stations in day-ahead market can improve the overall and individual generation efficiency, and proved the effectiveness and feasibility of the combined bidding strategy in power market.

scholarly journals Interaction between Industrial Policy and Stock Price Volatility：Evidence from China’s Power Market Reform

2018 ◽  
Author(s):  
Ye Fan ◽  
Zhicheng Zhang ◽  
Xiaoli Zhao ◽  
Haitao Yin
Keyword(s):  
Industrial Policy ◽  
Stock Prices ◽  
Stock Price ◽  
Price Volatility ◽  
Power Market ◽  
Green Energy ◽  
Market Reform ◽  
Stock Price Volatility ◽  
Price Fluctuations ◽  
The Impact

China combines green energy and industrial policy in its power market reform with various policy initiatives, including price support scheme for electricity from renewable sources and subsidies in the push for broader use of greener energy. This study focuses on the impacts of power market reform on the stock price volatility of listed power companies: 1) we use the Iterative Cumulative Sums of Squares (ICSS) algorithm to identify structural break points in stock prices; 2) we analyze the characteristics of stock price volatility based on the GARCH model; 3) we report the impact of power regulation on stock price fluctuations based on the Autoregressive Distributed Lag (ARDL) model. The result suggests three structural breaks in China’s power stock price volatility were related to the promulgation of power market reform policies. We find that industrial policies promote the reduction of power stock price fluctuations and its impact on power stock price volatility is consistent in the long run. However, our study also indicates the recent policies related to renewable energy do not have a very significant impact on the power stock market.

scholarly journals Research on Basic Characteristics and Bidding Strategy of Thermal Power Units in Fujian Spot Market

2021 ◽  
Vol 252 ◽  
pp. 02005
Author(s):  
Yuhui Song ◽  
Zhanhua Pan ◽  
Baike Chen ◽  
Zhaoxia Jing
Keyword(s):  
Electricity Market ◽  
Power Plants ◽  
Thermal Power ◽  
Spot Market ◽  
Bidding Strategy ◽  
Cost Calculation ◽  
Market Environment ◽  
Service Market ◽  
Electric Generator ◽  
Bidding Strategies

In the electricity market environment, thermal power units have changed from the executors of power production under the monopoly mechanism to the decision-makers of production and operation under the competitive environment. The merits and demerits of bidding schemes for thermal power units are directly related to self-interest of themselves. The bidding decisions of power plants are not only affected by economic factors, but also by technical factors peculiar to the power system and the electric generator. In recent years, research on bidding strategies of thermal power units based on the power market environment has been paid more and more attention in the field of electric market. This paper first introduces the basic peak regulation and frequency modulation technical characteristics of thermal power units and cost calculation. Then, from the angle of quotation, paper analyzes characteristics of quotation mechanism of units in Fujian Electric Power day-ahead, real-time and peak regulation auxiliary service market. Furthermore, the research status of bidding strategies of thermal power units participating in electricity market at home and abroad in cost analysis, market clearing price prediction, game theory and so on are summarized. Finally, the bidding strategy for units in Fujian Spot Market is put forward.

scholarly journals Essays on the Interaction  Between Risk and Market  Structure in Electricity  Markets

2021 ◽  
Author(s):  
◽  
Gabriel Godofredo Fiuza de Braganca
Keyword(s):  
Market Structure ◽  
Market Power ◽  
Electricity Markets ◽  
Electricity Market ◽  
Hybrid Approach ◽  
Spot Market ◽  
Spot Price ◽  
Policy Makers ◽  
Forward Markets ◽  
Electricity Spot Market

<p>This thesis proposes a new framework to jointly analyze electricity spot market and hedging decisions in an oligopolistic setup. Firstly, we find that, when exogenous, both quantity of electricity hedged by contract and vertical integration decrease the equilibrium spot price. Secondly, we use a hybrid approach and show that market structure can affect a generator’s decision to vertically integrate under uncertain demand. Thirdly, we consider uncertainty in costs and demand and show that concentration in the spot market, for a given hedge quantum, can increase forward prices and affect the slope of the forward curve. Our empirical results indicate that the model fits the New Zealand electricity market well. This evidence that market structure and hedging decisions are closely connected is further explored in a three period equilibrium model for the spot and forward markets, where hedging occurs prior to the submission of supply curves. Taking into account demand-side and supply-side uncertainties, we find that when hedging is endogenous, hedging quantities are affected by spot market parameters, but market power is itself mitigated in the conscious hedging choice of generators. We also show that forward markets can coexist with highly vertically integrated markets. The importance of our results is general. Our models can be used by policy makers to analyze investment and forward price implications of changes in the spot market structure. Our results also indicate that electricity generators, in equilibrium, face a trade-off between market power and hedging. Given that it is socially beneficial to manage risk, the equilibrium impact of their choices on welfare should not be considered in isolation by competition authorities.</p>

scholarly journals Bidding strategy of pumped storage power station in spot market considering different optimization periods

2020 ◽  
Vol 194 ◽  
pp. 01009
Author(s):  
Li Zhou ◽  
Peiliang Liu ◽  
Sijia Liu ◽  
Zhou Lan ◽  
Shuyi Shen ◽  
...  
Keyword(s):  
Peak Power ◽  
Power Market ◽  
Bidding Strategy ◽  
Market Returns ◽  
Power Station ◽  
Bidding Strategies ◽  
Power Stations ◽  
Economic Operation ◽  
Power Frequency ◽  
Pumped Storage

Pumped storage power station has multiple functions, such as alleviating the contradiction between peak and valley, to ensure the safe and economic operation of power grid. In the non market stage, pumped storage power stations mainly obey the system operator’s scheduling. In the market stage, pumped storage power stations in China are likely to participate in the competitive power market and provide peak power, frequency regualtion and recovery services. The paper studies the bidding strategies of the pumped storage power stations participating in the power market, and provides decision support for the pumped storage power stations to maximize market returns.

scholarly journals Analysis of Market Equilibrium Based on Co-evolution in Electricity Spot Market

2020 ◽  
Vol 218 ◽  
pp. 02024
Author(s):  
Guosheng Hu ◽  
Hechun Wang ◽  
Kun Fan ◽  
Haoyong Chen ◽  
Shengsheng Deng ◽  
...  
Keyword(s):  
Nash Equilibrium ◽  
Electricity Market ◽  
Lower Layer ◽  
Market Equilibrium ◽  
Power Market ◽  
Spot Market ◽  
Future Trend ◽  
Level Model ◽  
Electricity Spot Market ◽  
Security Constraint

By solving the Nash equilibrium of the electricity market, it is possible to observe the game process of market entities under different boundary conditions and predict the future trend of the market. In order to study the state of market equilibrium in the power spot market, firstly we constructed a bi-level equilibrium model. The upper layer is the problem of maximizing the profit of power generation enterprises under the bidding constraint, and the lower layer is the security constraint economic dispatch with the goal of maximizing social welfare. The traditional solution transforms the bi-level model into MPEC or EPEC through optimal conditions, but they are generally non-convex and difficult to solve. In this regard, the coevolution algorithm is used to solve the bi-level model, and it is proved that the result of co-evolution under a limited strategy set is equivalent to the Nash equilibrium. Finally, an example of PJM 5 machine with 5 nodes is used to analyse the power market equilibrium in the spot market.

scholarly journals A Two-Stage Dispatch Mechanism for Virtual Power Plant Utilizing the CVaR Theory in the Electricity Spot Market

Energies ◽  
2019 ◽  
Vol 12 (17) ◽  
pp. 3402 ◽  
Author(s):  
Rui Gao ◽  
Hongxia Guo ◽  
Ruihong Zhang ◽  
Tian Mao ◽  
Qianyao Xu ◽  
...  
Keyword(s):  
Power Plant ◽  
Demand Response ◽  
Market Price ◽  
Power Market ◽  
Spot Market ◽  
Virtual Power ◽  
Two Stage ◽  
Virtual Power Plant ◽  
Electricity Spot Market ◽  
The Impact

The electricity spot market is now being implemented in China. Demand response, as a kind of flexible resource, is also being studied and explored for the constructed power market. Among the many demand response applications, the virtual power plant (VPP) as an aggregator of distributed energy resources (DERs), receives ever-increasing attention. However, the participation manner and related impacts of the VPP to the electricity spot market are still unknown within the current power market rules. Under this background, obeying the present trading rules of China’s electricity spot market, a two-stage dispatching model with optimized bidding and operating strategy in the day-ahead (DA) and real-time (RT) market for the VPP is proposed. In the designed model, the conditional risk value (CVaR) is adopted to address the risk encountered by the uncertainty of the electricity spot market price. The impact of the user-side over-deviated revenue mechanism (UORM) of the China spot market on the income of the VPP in the DA and RT market is also analyzed. For a full evaluation, different coefficients for the influence of DA and RT risk, UORM, and energy storage system (ESS) are tested to investigate their respective impacts on the revenue of the VPP. The simulation cases prove that the proposed method is helpful for the VPP to optimize DERs’ output in the electricity spot market according to its own risk preference.

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